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Netflix - Essay Example

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Author : krystelmills

Summary

Netflix Company Analysis, Value Chain Analysis and Identification of its IT Techniques and How they provide it with a Competitive Edge Name: University: Course: Tutor: Date: Netflix Company Analysis Neflix is essentially the global internet television network industry leader and offers a subscription to all its interested customers across the globe…

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Netflix

Netflix is seen to essentially operate in three different segments which include: Domestic streaming, Domestic DVD and International streaming. While its domestic and international streaming derives revenue for the company by the collection of revenue from the various monthly subscriptions paid by the customers for streaming content, its domestic segment derives revenue from monthly DVD-by-mail subscriptions. The company’s content is delivered to its users over the internet through various connected devices such as personal computers, Macs, Blue-ray players, play stations, home theatre systems and Internet video players. The company’s revenue growth is estimated at about 32.9% which has been found to be about thrice the current home video industry as a whole. By charging monthly subscription fees that are at times as low as $7.99 for unlimited monthly subscription (Carr, 2011), and having no late fees, Netflix is able to account for an estimated 90% of all online DVD rentals in the United States and about 3-5 percent for all the county’s home video rentals. ...
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