Topic > Netflix Segment Analysis - 1002

The two general environment segments that would rank highest in their influence on Netflix are the technology segment and the demographic segment. According to Netflix (n.d.), “Netflix is ​​the world's leading Internet television network with more than 81 million subscribers in more than 190 countries watching more than 125 million hours of TV shows and films per day, including original series, documentaries and feature films. Members can watch whatever they want, anytime, anywhere, on almost any Internet-connected screen. Members can play, pause and resume watching, all without ads or commitments. Netflix's technology segment includes new innovations and new devices (Mit Technology Review, 2013). According to Mit Technology Review According to Smith (2015), “the new model should offer Netflix customers better content using 20% ​​less bandwidth. This is a big issue for customers, particularly in areas with slow Internet speeds in the United States and abroad." The technology segment influences Netflix in many ways. For example, technology helps Netflix lead in the services sector of online video streaming and DVDs compared to other competitors, including Amazon Prime and Hula (Williams, 2015), “Netflix it definitely is streaming at scale. The company has 65 million subscribers worldwide who stream 100 million hours of content per day, making it the clear leader in borrowing from friends and buying from retailers (Bowen, Daigle, Dion & Valentine, 2014) According to Bowen et al., (2014), "substitute products for the movie rental industry are numerous and include physically attending a movie, watching television, browsing the web, or even playing a video game." Furthermore, people can watch their favorite films and television episodes by purchasing DVDs, watching them on TV, and going to the cinema (QU, Mahboubi & Cho, 2015). According to QU et al., (2014), “although a movie ticket can cost $10, the same amount Netflix charges for unlimited access to movies and shows for an entire month, theaters screen the latest films with more famous stars, while the content licensed to Netflix may be more outdated and less popular.” Netflix has attempted in many ways to prove itself and deal with the threat of new replacements. Netflix, for example, has made some attempts among theater chains to address the threat of new substitutes (Reisinger, 2016). According to Reisinger (2016), “in October, Netflix made enemies among theater chains, including AMC, after the company released its first major feature film, Beats of No Nation. While Netflix agreed to offer