After reading Evan Wong’s blog, I felt very intrigued to pursue his topic as I was very interested in investigating how Movie rental companies were brought into extinction, and I wanted to get a better understanding on why Netflix is such a strong brand and how it differentiates itself from the competition. The days of heading to the local movie rental store and renting the latest hit are far gone, and have been replaced with unlimited catalogues of TV shows and movies with a click of a button.
Netflix has a unique business plan that allows them to differentiate themselves from the competition. One of their main focus points is on the edges of convenience which is an occurring theme in recent times. People are very busy in today’s world, so they are constantly searching for new alternatives in an effort to maximize their down time. Netflix lets users watch their favorite movies or TV shows on a number of versatile platforms that allows it to be easily accessible by many. It can be viewed on the go as well as in the comfort of your own home.
Another reason Netflix is such a strong competitor is due to its Netflix originals and a number of rights they have bought. Netflix has created many Netflix originals and these have become very popular among consumers. Some of these include Narcos, House of cards, Orange is the new black, and a number of others. These programs allow Netflix to have a broad range of content to cater to an extensive customer base. Netflix also has bought the rights to several movies and TV shows which continues to extend their range of programs to keep the customer happy. Netflix’s original series, along with the rights of many popular TV shows and movies give them a leg up over the competitors. They continue to create more barriers to entry which is why many of the competitors like Crave and Shomi are not showing much of an actual threat to Netflix and are fleeing from the market.
I agree with Evan and feel that I will not be searching for a new substitute any time soon as Netflix has given me everything I could ask for. They are constantly adding new content and producing new seasons of Netflix series to stay ahead of the curve. It would take a lot of new additions and convenience for me to switch to another company and I feel this is a similar trend among customers which shows Netflix has a large sense of brand loyalty.
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Sources:
Evan Wong’s Blog: https://blogs.ubc.ca/evanwong/2016/10/02/netflix-the-champion-of-streaming-services/
http://www.comingsoon.net/tv/features/667785-the-10-best-netflix-original-series#/slide/1
http://unicornomy.com/how-does-netflix-make-money-business-model/
https://www.emarketer.com/Article/Convenience-Cost-Content-Power-Netflix-Uptake/1012730
