Netflix Debate

During our class discussion we concluded that Netflix should invest in producing more content as opposed to solely buying more content, partnering with Google or partnering with a cable company. Producing more content is a more risky option but the returns have very high potential. As we can see in the 2013 SWOT, Netflix is very strong in marketing effectively to their customers with promotions such as offering the first month’s subscription for free. If they produced more of their own series, providing a free one month subscription would bring in new customers and convert them into paying customers after the month because they would be unable to get these shows anywhere else.

There is already proof in the numbers that the viewers and critics responded very well to these original shows such as House of Cards and Arrested Development. As well as prior success in producing content, Netflix is such a heavyweight in the market today that it seems unnecessary for a partnership at this point. A few years ago, before their immaculate stock boost in 2011, it may have made economic sense for them to establish themselves in the market by aligning with a strong company like Google.

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