Netflix is the original major streaming option for home television audiences. When it started nearly 20 years ago, Netflix was a subscription-based DVD service that would mail DVDs straight to your home. It still does that too (more on that later), but in 2007, Netflix debuted its streaming service, allowing viewers to watch thousands of on-demand TV shows and movies ad-free. Ten years later, Netflix has become one of the biggest names in entertainment, producing critically acclaimed TV shows (Daredevil, House of Cards, Stranger Things, and Luke Cage, to quickly name four) and movies and hosting original comedy specials. Netflix now offers up a wide range of content across every genre you can imagine. From full seasons of today’s hottest TV shows to classic movies, Netflix has more entertainment than you could ever possibly watch. As you watch more content, Netflix will learn about your viewing habits, offering up custom genres with colorful names like “80s action comedies” or “gory unconventional horror films for feminists.”Netflix’s algorithm is one of the smartest in the industry, so once you’ve moved past the stage where you’re just watching every big movie, take a chance on Netflix’s recommendations. Thanks to Netflix’s deal with Disney, it’s the first streaming service to find new Marvel Studios releases like Captain America: Civil War and Doctor Strange. Netflix also features an incredible amount of original standup comedy. This year alone they’ve released two specials from Dave Chappelle, along with new material from Louis C.K., Sarah Silverman, Tracy Morgan, and Norm MacDonald among dozens of other comedians. There’s no better service for standup comedy right now than Netflix. The company has also heavily invested in documentaries, most notably true-crime thrillers Making a Murderer and The Keepers and the Academy Award-nominated 13th. Question: 1. With reference to the case study, identify the product life cycle phase that Netflix is in currently and briefly justify your answer. 2. Classify the service Netflix delivers and provide two reasons for your classification. 3.Netflix produces their own shows and movies and distribute these via Netflix streaming service. Identify the distribution channel that Netflix is using and briefly justify your answer.
Netflix is the original major streaming option for home television audiences. When it started nearly 20 years ago, Netflix was a subscription-based DVD service that would mail DVDs straight to your home. It still does that too (more on that later), but in 2007, Netflix debuted its streaming service, allowing viewers to watch thousands of on-demand TV shows and movies ad-free. Ten years later, Netflix has become one of the biggest names in entertainment, producing critically acclaimed TV shows (Daredevil, House of Cards, Stranger Things, and Luke Cage, to quickly name four) and movies and hosting original comedy specials.
Netflix now offers up a wide range of content across every genre you can imagine. From full seasons of today’s hottest TV shows to classic movies, Netflix has more entertainment than you could ever
possibly watch. As you watch more content, Netflix will learn about your viewing habits, offering up custom genres with colorful names like “80s action comedies” or “gory unconventional horror films for feminists.”Netflix’s algorithm is one of the smartest in the industry, so once you’ve moved past the stage where you’re just watching every big movie, take a chance on Netflix’s recommendations.
Thanks to Netflix’s deal with Disney, it’s the first streaming service to find new Marvel Studios releases like Captain America: Civil War and Doctor Strange. Netflix also features an incredible
amount of original standup comedy. This year alone they’ve released two specials from Dave Chappelle, along with new material from Louis C.K., Sarah Silverman, Tracy Morgan, and Norm
MacDonald among dozens of other comedians. There’s no better service for standup comedy right now than Netflix. The company has also heavily invested in documentaries, most notably true-crime thrillers Making a Murderer and The Keepers and the Academy Award-nominated 13th.
Question:
1. With reference to the case study, identify the product life cycle phase that Netflix is in currently and briefly justify your answer.
2. Classify the service Netflix delivers and provide two reasons for your classification.
3.Netflix produces their own shows and movies and distribute these via Netflix streaming service. Identify the distribution channel that Netflix is using and briefly justify your answer.
Company N was founded in the 1990s as a subscription-based DVD service provider. Since then it has been continuously transforming its business and attempting to exploit new business opportunities. For instance, its expansion into streaming services in the year 2007.
Answer 1. Product life cycle or PLC - It is the process through which a product goes on from its introduction until its decline (when it is removed from the market). In general, there are 4 stages of PLC - Introduction, Growth, Maturity, and Decline. However, sometimes product development is considered the 1st stage (i.e. 5 stages of PLC).
The development stage signifies the creation of the product. Introduction signifies entry into the market. Growth signifies the expansion in the target market. Maturity signifies the market saturation when the sales of the product might slow down. The decline highlights a significant drop in product sales that leads to the eventual phasing out.
Company N has seen its expansion phase (i.e. growth) and the peak of the growth phase.
It has now entered the maturity phase and that is apparent because of the product (content) diversification and other business strategies (deal with Disney) being used to sustain and thrive amidst competition. The battle of prices among competitors and the discount offerings to maintain the customer base.
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