Netflix Case Essay

In the late 1990s, with the booming in yield of Internet users (dot-com boom), investors was encouraged to invest in Internet to get in on the very profitable market that was available at that time. Netflix was peerless of the first Internet companies, which took that advantage by getting into Internet telly market. By the late 2000s, home icon renting business (Blockbuster, Hollywood video, etc.) took piazza in the market, however it didnt take too large for Netflix to beat that market and in mid 2009 increase its stock prices to $39 when its best competitor Blockbusters was less than $1.Although Netflix was taking business office over the video assiduity, companies such(prenominal) as Apple, Amazon studios and Hulu began to threat Netflixs sh ar in the market but Netflix could respond to those threats by place in research and development and bring up recent models such as video on necessitate model. Today Netflix is worlds leading Internet TV and mental picture provide r and has over 40 million members in most developed countries.Netflix is still working arduous to meet unending challenges while pull stringsling its core business and it is not very easy to manage an organization as Netflix since there are always issues and problems due to competitors challenges in this competitive industry but it is realizable for Netflix to manage these competitions by doing research and development to come up with new models and trends.The video industry started in the 1970s in the United States and it was broadly focused on VCR technology. With the decrease in video theatres, the industry concerned near loosing the control over selling their flicks and was looking a better way to extend the distribution network, which was yet by movie theatre at that time. By the 1990s, they came up with the idea home rental videos since they saw the opportunity of video rental business which could not only be an alternative of going to movie theatre, but also gravid chance of selling or renting the movies that performed bad in movie theatres.The market has changed in 2000s when DVD technologies, which had special features such as, extra scenes and widen versions took place in the market until 2010 when the Blu-ray came up since there was a demand for viewing of high definition movies but it didnt take place very well in the market and then DVD maintain its position again.However, there was a change in buyer way as Internet technologies have improved. Buyers started not to go to video rental store just like they didnt want to go to a computer store to buy a computer. Internet sales took control over almost every industry.Even grocery shopping could be done online. Hence, digital distribution of TV shows and movies via Internet streaming wasnt a big surprise for the industry. Since all these was threatening physical video rental business, Netflix offered its customers to watch a movie immediately when purchased without worrying about turning i t back or even late fees. The organization off into a win-win situation because of the fact it included customers, producers, TV and cable providers, distributers, movie theatres and even video stores into its value chain.