Netflix, A New Way Of Watching Tv

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Netflix, a new way of watching TV

Entertainment services have become the way of leisure that the population in the 21st century has decided to take. Facing the growing needs born from a new communication tool such as the Internet and the exhaustion of time as a desirable resource. The Netflix company found a way to provide a desirable and valuable service for society in order to obtain a sincere result of well -being and quality to its users.

In this way, it has promoted a dual and synergistic economic model based on the social cultures of the new century and current investment systems based on Internet economies. The basic business principle has been established in innovation and television reinvention as an leisure and entertainment to the letter addressed to the end user. Who establishes the real need at the time that the service feels and demands openly and sincere to obtain an answer in the place you want.

This communication effect allowed, broadly, the business chain would be developed in favor of both economic lines (supply and demand) finding a balance point between television pays (cable or satellite) and the Internet service ( Mbps speed). Being the company’s largest investment asset the media, simplicity based on the tastes of the population and the availability of entertainment desired by users.

Netflix as a connoisseur of the medium

Company that was born in 1997 in a blockbuster format, where the greatest desire is to provide a direct customer service gender the innovation to indicate to the client that selection of films or TV series had great acceptance of the public and which did not. Supero the fall of the “Rental amount of tapes and films” with shipments everywhere in the USA by mail and door to door with a plus return of the tapes under the same medium and energizing the service by means of a “plus” or “ minor ”to improve customer experience about new productions could be of interest based on customer purchase history.

This is how in 2007 it starts its greatest plan, reaching everyone safely and quickly. Directly opening a streamer service for all its customers that would work as a Pay Per View service (pay to see or see on demand). This model that was simplified by a tool such as the Internet and communication systems based on social networks allowed Netflix to be easily understood by the consumer and driven by the same people as a sincere and adequate option to enjoy their free time properly.

Netflix survived what others only imagined

Nextflix is ​​a connoisseur of the streamer, other competition companies such as Hulu, Fox Premier, Sling, Play Station Vue, YouTube TV, Fubo, Amazon Prime, among others. They have sought to enter this new system and create striking variables of the same. However, most have perished, they have been absorbed, they have limited their audience to a specific sector or have been abandoned to their fate. Netflix today has the greatest number of users on the 5 continents demonstrating that they have managed to enter each market and focused their priorities in knowing when consuming and what needs to meet it to the detriment of the competition.

Netflix, was a teenager, today is an adult

The years, survival and experience are factors that make Netflix position today as a leader and not as a follower. The company has established business standards and what are the lines to be met. However, the history of the company is based on adequately knowing what type of industry they are and how to focus the public to demand this type of service. The company in only 9 years has achieved a growth of 3 times its income based on the time it entered into this medium.

This growth has been based on properly conducting its offer and working efficiently in finding ways to differentiate themselves from competition, demonstrating that they are not equal and present benefits that competition still fails to understand.

Netflix, spending as an investment method

Netflix, has not changed its way of obtaining raw material. It is in the industry appealing to the nostalgia of the usual, emblematic films and addressed to each type of user has also known how to join its name and marks productions that point to only be seen on this streamer platform indicating and providing them with a Unique character to users who may feel the desire to belong to a unique and special community that has differentiating means, reasons to communicate and manage the same language and a system of empowerment of the system that motivates consumption.

Netflix, understand your business and understand that it is

One of the biggest problems of companies is to understand what their business is and what you have to do to prosper. Netflix did it and has demonstrated it in how the company’s capital manages. Seeing himself as a company in the Internet sector has based its principle on opting for justified cash movements in immaterial (intangible) goods that can be distributed to their consumers in an open way. Unlike tangible goods, intangible. Different from a machine that in a time "t" will suffer a depreciation and a decalization that will leave it useless or ineffective for the market. The intangibles of the company are revalued by external effects such as: the remake of the 90s movie, the series that does not go out of fashion, the free time that allows you to watch the movie I never saw, etc. Netflix generates consumption every time its name is remembered and this effect makes its main asset, the intangibles, be the wealth generating factor.

This intangible inventory is based on open update and catalogs, available in several forms of consumption (language, resolution, online or laptop, etc.). Netflix evolved and evolves at all times presenting an idea of ​​how to act in the face of change needs and the constant opening of the market.

And the debts?

The way working capital is always obtained is a way to provide security to investors and creditors (stakeholders) that the business is on the right track. Netflix knows where its raw material comes from and knows that time is valuable. That a success and renow. The leverage based on 55% in long -term debts and its constant growth year after year without affecting the company’s debt structure makes its way of facing the risk and vicissitudes of the market is constant managing a continuous and little mutable WACC. Giving security to investors how much they can choose to be with the company and when financial stress can support without suffering collateral damage from the competition

Netflix, is you alive or is you old?

The Internet is still unknown to many, but if it is sure it is that yesterday’s news is no longer those of today. Being outdated is as easy as being up to date. Therefore, arriving on time is no longer enough, it is now necessary to create the news or expectation. Netflix grew aggressively during these last 10 years. This effect was motivated to understand the market, make it and cope with changes in consumer needs. However, Netflix obtained a benefit that others only dreamed and is the expansion. Few are the television channels that can afford to say that regardless of the country they can be in the minds of consumers. Companies such as ESPN, CNN, BCC, Playboy and HBO have managed to overcome the times of fashions and establish themselves as a source of entertainment. Among them, many others were only forgotten: MTX, and!, AXN, Cartoon Network, Warner, Fox, among others. They miss being the desired to have in their prime time the advertisements of the most desired brands becoming an old source of information. Netflix found a way to constantly grow its consumer mass.

Netflix, and once an ideal world was

In a world without competition, there is no way to create, develop and motivate growth. This event happens rarely and its effects can generate aggressive consequences such as a hostile market, negative or political consumption practices. Netflix, I reach an almost absolute peace state, a blue ocean, space where companies can expect consumers to be, grow and consume continuously without generating a greater benefit than the service than the service.

This event was almost generated in 2016 when Netflix was the only streaming service that survived the first wave against this service. In this space, the Services Net Cinemas in cinemas. Ciming a social network with continuous growth and with the possibility of generating improvements. Netflix came to its blue ocean a space that allowed it to grow in Europe, Latin America and Asia.

However, Netflix maintained the idea of ​​motivating different components of TV and cinema to continue with unified jobs to provide improvements to users and find themselves in a position to prevent new entities from being interested in this market. Knowing that the opponent to win had a wide range of users and their services were above the standard in the industry.

At the beginning of 2018 Netflix began to observe difficulties to continue innovating, having cancellations of its suppliers for new services, programs and films that allowed continuing the business model that for years knew how to innovate. These companies observed that they could be essential suppliers or in their contrast possible competitors which had the working capital tools and components or raw materials to establish a new crusade against the harmony space (blue ocean) that Netflix found.

This event reason for increasing the indebtedness of the company in order to seek to venture into new strategies in order to produce its own sales material. This risk could cause two effects in favor of its largest investment that are intangible.

A new challenger

Netflix, has prepared for a new stage and the possible situations that the market will bring. A special provider Disney has ventured to be its competitor through strong investments such as the purchase of the Fox entertainment and focus of its audiovisual material completely exclusive to its platform, of which Netflix previously obtained united and differentiating content. Another competitor will be Amazon Prime that has found commercial alliances to venture into the Latin market. With a view to more determined segments, HBO (Warner Entreteiment) and DirecTV want to keep their cable users through streaming services that facilitate the consumption of their contents.

Netflix, has currently shown that he knew what would come. Motivated how he directed his profits towards reinvestment and a mechanism for the management of the free cash flow towards the long term so that the company does not fall like the other companies. Netflix seeks to innovate and to date has achieved it. However, never to live without their raw material, entertainment products previously known by the community.

The competitors have put in front of Netflix the most complicated scenario and so far Netflix is ​​only the same as yesterday. In the previous chapter, we express that Netflix supero to a Titan as it was in the 90’s blockbuster. It will be Disney the new Titan to overcome or who breaks the blue ocean to revive competition and create a new market motivated to growth and development?

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