Question

In this ever-changing market of new business models such as Netflix, Redbox and Hulu in the Home Movie Entertainment category, what recommendations do you have for the giant Netflix in competing with other big players such as Amazon and Apple for online streaming?

What about competing against Redbox?

Answer 1

The giant in online streaming Netflix majorly works through their business model on subscription fees. They have majorly three models in it Basic, Standard and Premium.Netflix core competency itself is in this area and almost all major serials, and major films copyright being won by Netflox in recent years. At the same time Amazon and Apple do thier online streaming business as apart of their other major business models. Amazon through their prime videos offers streaming of their online videos at reasonable price. The major difference between Netflix, Amazon and Apple is the streaming traffic , quality of videos, and number of videos availability. Netflix stands out in this segment. Redbox is into rental business of Blueray rip, DVD etc of games, videos. In recent era of internet and digital TV's and smartphones the business of rental model has come down drastically. At present Redbox is concentrating more on driving revenue through their video game rentals.

Unique features of Netflix which stands out in this segment are

• Redflix only have limited reach towards their customers
• Netflix through their online portal have wide spectrum of target customers
• Netflix provides online movies, serials and braingames etc. But Redbox only provides through rental mode
• Subscription fee of Netflix is almost 20%-30% higher than Redbox but customers can view their favorite movies n number of times whil that is not possible in Redbox.