Call Girls in Calangute Beach 8588052666 Goa Escorts
Netflix Wars- Group 6.pdf
1.
2. The Netflix Timeline
Streaming Wars – Netflix’s market shaping strategies
Source: strategyjourney.com
❖ Netflix is currently worth 120 bn USD
❖ 3781 movies available as at December 2020
❖ 220.67 million paying customers (year-end 2021)
3. Streaming Wars – Netflix’s market shaping strategies
Source: Kaj Storbacka & Suvi Nenonen (2021)
❖ Market shaping is adapting the market to the firm,
instead of the firm to the market
❖ 12 managerial levers for market shaping
❖ Which of these levers did Netflix use?
The 12 Managerial Levers
4. Streaming Wars – Netflix’s market shaping strategies
Source: Kaj Storbacka & Suvi Nenonen (2021)
Which Managerial Levers have Netflix pulled to shape the market?
Social Norm
Sales
Item
Network
The 12 Managerial Levers
5. What did Netflix do to pull the “Sales Item” managerial
lever??
- Forced the video entertainment industry
to transition from DVDs to online streamed
content
❖ Onward vision (from inception)
❖ Licensing collaboration: with creators, studios, device & electronics device makers
(Microsoft on X-Box, Samsung on TVs)
❖ Created the Streaming Value chain: Building content >> distribution (using content
delivery networks - OpenConnect by Netflix) >> UX (experiments to maximize app
engagement & movie discovery e.g. user profiles, good movie recommendation,
selecting right image)
❖ Technology: solved user pain of movie selection by "create microgenres(8000)" >>
"link microgenre to user history" >> "allocate users to over 2000 taste
communities" >> "make fairly accurate movie suggestions"
How did Netflix succeed in pulling this managerial lever?
Sales Item
Streaming Wars – Netflix’s market shaping strategies
6. Impact of video streaming service on revenue
Sales Item
Streaming Wars – Netflix’s market shaping strategies
7.
8.
9.
10.
11.
12.
13. Network consists of sets of actors and
addresses the constellations of partners
with whom the Netflix has direct
relationships.
Netflix Network Architecture:
Network Ecosystem
Streaming Wars – Netflix’s market shaping strategies
14. Netflix and Internet Service Providers:
The relationship between content providers and
networks is complementary and the complementary
relationship between ISPs and providers of video
content is particularly strong. Services like Netflix rely on
networks to distribute content to consumers and ISPs
benefit from increased demand for connectivity.
An Example case:
Source: A Netflix briefing paper 2021
14
Reshaping Network Structure
Streaming Wars – Netflix’s market shaping strategies
15. How did Netflix succeed in pulling this managerial lever?
❖ Netflix joined the network and big data providers
like Google and Amazon. (Amazon was accompanied to
promote Netflix listings and subscription options).
❖ To expand in West Africa more aggressively, Netflix
partnered with Nigerian filmmaker Mo Abudu, the owner of
Ebony Life TV. This partnership will enable Netflix to create
new content targeting consumers in West African nations.
15
What did Netflix do to pull the “Network Structure”
managerial lever?
Additionally, Netflix is collaborating with a number of
businesses in the Alliance for Open Media, including
Samsung, Intel, Cisco, and Hulu, to provide open, royalty-
free, and competitive solutions to improve the
effectiveness of media technology. These solutions aim
to offer users superior quality across all platforms,
devices, and user types. The Alliance's work led to the
development of video encoding technologies that
significantly increased the effectiveness of high-quality
video streaming around the sector.
Netflix Network Structure
Streaming Wars – Netflix’s market shaping strategies
17. What did Netflix do to pull the “Social norms” managerial
lever?
- From licensing deals with studios, TV
networks, and cable channels for rerun
rights on movies and TV shows to its own
original content.
❖ Focusing on its own streaming services: In 2012, it began commissioning its own
original content and, in 2018, it acquired its first studio.With the launch of their
own streaming services, Disney, NBC Universal, and Warner removed their content
from Netflix, further increasing Netflix's reliance on producing its own content.
❖ Signing exclusive contracts with prominent producers and screenwriters: During
2020, Netflix outspent even the major Hollyv ood studios on movies and TV shows.
❖ Local adaptations: Netflix's international strategy involves adapting to national
regulations and customer preferences, accessing and producing foreign language
content, working with local partners, and adapting to local broadband
infrastructure and viewing practices. Local players that Netflix works with include
content producers, device manufacturers, mobile and TV operators, and Internet
service providers.
How did Netflix succeed in pulling this managerial lever?
Social norms
Streaming Wars – Netflix’s market shaping strategies
18. 18
Social norms
How did Netflix succeed in pulling this
managerial lever?
- Criticism of social structures /
stereotype breaking
Apparent criticism of capitalism and wealth
inequality contributed to content’s wide
popularity
- Introduction of ‘Glocalization’
As for the concept of glocalization, a
combination of the words "globalization" and
"localization.
The term is used to describe a product or service
that is developed and distributed globally but is
also adjusted to accommodate the user or
consumer in a local market
- Introduction of Cultural Diffusion
Elements of cultures exchange, diffuse into one
another therefore creating an environment
where different cultures can relate to the content
Social Norms
Streaming Wars – Netflix’s market shaping strategies