MKTG-UB 40 Chapter Notes - Chapter 7: Amazon Video, Hulu, Video On Demand
15 Nov 2016
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Offers subscription video and dvd and blu-ray disc rental for a monthly fee. Has 74 million subscribers as of january 2016. Employs more than 3,500 full-time employees; . 78 billion revenues. At time of launch, industry dominated by blockbuster (video rental company) Blockbuster relied on willingness of customers to go to store locations. Netflix originally launched as pay-per-rental dvd mailing service, and then as a subscription based service in 1999. Netflix gained a lot of success, and the blockbuster method became obsolete. Netflix began to move business model away from mail-order and to internet streaming and video-on-demand in 2007. Company has experienced steady growth since 2011. Does not generate revenue from advertising services. Industry dominated by a small number of firms. Netflix dominates the market, but new firms (hulu) have unique competitive advantages. Competes through their enormous customer base, strong brand, and powerful infrastructure. Hastings decided to pursue new partnerships and agreements to produce original.
