Description
- In 2011, Netflix changed their focus from physical distribution of DVDs to direct streaming.
- Pre-2011, they had thelogistics capability to attain one-day delivery and could spur demand for existing titles by recommending them based on consumers revealed preferences.
- Netflix was delivering entertainment services through one tangible material the disc.
- Post-2011, Netflix removed the intangible services from the disc by using digital streaming
- This lowered physical distribution dollars dramatically.
QUESTION Two
- Order winners and qualifiers for Netflix will comprise of quantity of desired content and speed of delivery for goods regardless of pre or post 2011.
- With speed in ISP, the standard for streaming has changed drastically for many consumers.
- NON IPS customers will still focus on delivery of discs, as many customers seeking older titles are less likely to find their movies and shows digitally.
- The agreement Netflix signs with major production studies will be a core factor and investment for Netflix to sustain the market share.
Question Three
- Still a market demanding physical delivery.
- Poor ISP or folks who do not wish to spend their dollars or income.
- Other customers prefer discs over digital because often have special features such as directors commentary, deleted scenes, etc., that are not available with strong streaming services.
- Netflix is obtaining positive revenue, this is an area which will need to be revisited based on revenue and GP.
- In 2011, Netflix changed their focus from physical distribution of DVDs to direct streaming.
- Pre-2011, they had thelogistics capability to attain one-day delivery and could spur demand for existing titles by recommending them based on consumers revealed preferences.
- Netflix was delivering entertainment services through one tangible material the disc.
- Post-2011, Netflix removed the intangible services from the disc by using digital streaming
- This lowered physical distribution dollars dramatically.
QUESTION Two
- Order winners and qualifiers for Netflix will comprise of quantity of desired content and speed of delivery for goods regardless of pre or post 2011.
- With speed in ISP, the standard for streaming has changed drastically for many consumers.
- NON IPS customers will still focus on delivery of discs, as many customers seeking older titles are less likely to find their movies and shows digitally.
- The agreement Netflix signs with major production studies will be a core factor and investment for Netflix to sustain the market share.
Question Three
- Still a market demanding physical delivery.
- Poor ISP or folks who do not wish to spend their dollars or income.
- Other customers prefer discs over digital because often have special features such as directors commentary, deleted scenes, etc., that are not available with strong streaming services.
- Netflix is obtaining positive revenue, this is an area which will need to be revisited based on revenue and GP.