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.