I would like to expand further on Vicky’s blogpost regarding the success of Netflix from this article.
Netflix is an online streaming media with over 10 million subscribers. As Vicky mentioned within her blogpost, Netflix has not expanded their service to Asia. However, an important question to consider is, should they try to enter the market in Asia? When a business enters a new market, all aspects must be considered. This can be done through a SWOT analysis. While there is an opportunity for Netflix to enter the Asian market, there is also the threat that it may not be successful. This would be mainly due to a significant number of online platforms available online in Asia that provides free streaming of shows and movies that could be found on Netflix. Hence, this is a difficult market for Netflix to enter although it is desirable because of the large population, which would lead to a greater total revenue for Netflix.
Moreover, Netflix is the market leader within the online streaming media industry. While Vicky compares Netflix with Blockbuster, I believe it is more appropriate to compare Netflix with Hulu or Amazon. This is because Blockbuster is a movie-rental store while Hulu and Amazon are in the same online streaming media industry as Netflix. Therefore, Blockbuster and Netflix have different channels as Blockbuster has a physical store while Netflix is only an online platform. As Netflix is considered to be the pioneer within the streaming media industry, this makes them the market leader according to Al Ries and Jack Trout. Also, Netflix has the largest market share compared to its competitors at 57.5%. Although it is unknown as to how long the success of Netflix will continue, it can be said with certainty that the current market trend of online streaming works in favour with Netflix’s business.
Website and image source
http://www.theglobeandmail.com/globe-debate/the-games-over-hands-off-my-netflix/article20884087/
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