Tuesday, July 5, 2011

Netflix's Product Strategy

The New York Times has an interesting article on Netflix's recent product (or service) strategies in the home entertainment market. Netflix has been changing from a DVD by mail entertainment provider to an increasingly streaming entertainment provider and as the demand for these services have been increasing, Netflix has been able to increase the price charged for these services.

The change from a mail order DVD rental firm to a entertainment home streaming firm is also having an effect on both content producers, such as Sony, and other entertainment providers, such as cable companies. Recently cable companies have been losing customers, in part due to customers switching cable to firms like Netflix.

Additionally, Netflix has benefited from a lack of competition, but companies like Hulu will have an increasing incentive to offer these types of services.

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