Video Streaming Industry Analysis and Netflix’s Strategy

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Video Streaming Industry Analysis And Netflix’s Strategy

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The video streaming industry is an industry that I believe is becoming more and more popular all around the world. With the increase in smart devices and technology in general it is becoming more mainstream. Many people that I know, myself included, have given up regular television and local channels so they can switch to something like, Netflix, Hulu, or Amazon Prime. The benefits of switching to a video streaming company over traditional TV seem to greatly outweigh the downfalls. The user gets to be more in control of what they are paying for, it gives you suggestions on what you like to watch, it is overall a cheaper option compared to the DirecTV or Mediacom routes, and you can watch your shows anywhere. According to an article from Benjamin Burroughs from the University of Iowa, “companies like Netflix are part of new ideas governing how television and film get made and distributed.” Video streaming sites are changing the way people view and purchase entertainment.

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I believe that video streaming is in its growth stage in the industry life cycle. There are more and more companies in the market now that offer video streaming and it is becoming much more common. I do believe that in the next few years this industry will reach its maturity stage. Revenue on video streaming is starting to level out and predicted to stay about the same in the next few years. Also the number of users is predicted to remain at a more constant level in the upcoming years according to a graph from

I believe that there are many environment factors to consider when looking at the video streaming industry. According to Lee Rainie from the Pew Research Center 61% of people ages 18-29 use video streaming services in the US.

One of the biggest business strategies for Netflix is low cost. It is a lot cheaper than the satellite options people were using before they switched to Netflix. It is also important for Netflix to have a product that is easy to use and universal. Netflix’s main focus is on TV shows and movies. Some other video streams have a focus on sports or live shows but Netflix sticks to the quality of the TV shows and movies they have on their site. An article from Forbes stated that Netflix “will work on a wide variety of content to satisfy the diverse tastes of its global audience.” They want to be able to hit all types of audiences with their large variety.

Netflix is able to compete with their competitors because they are one of the original video streaming services. They also add more movies and shows frequently too keep their viewers entertained. Netflix’s hope is to keep the high quality shows on their site to keep their competitive advantage. Amazon and Hulu are two of their biggest competitors. While Amazon and Hulu focus on the live-stream side of video streaming, Netflix looks at the content they want on their streaming service.

Netflix just has to keep adding shows that people want to watch. I have noticed that they are good about keeping shows that people want to watch and filtering out the ones that don’t seem to be gaining that much attention. I believe that Netflix should try and get more of the top rated shows that are on air. If they want to stay ahead of both Amazon and Hulu they have to continue to gain rights to show television that people actually like to watch. I also think it is important for them to gain the rights to more movies. They have a lot of older movies that are available to stream but I think they would gain a huge competitive advantage if they get more of the recent movies that are popular with viewers.

The competitive state of the video streaming industry is very high. There are a lot of different variations of sites that come up each year. Whether their focus is shows, movies, comedy skits, or live television, all of the companies keep each other on their toes. It is important for companies in this industry to update often and get as many new, highly rated shows and movies as they can. It is also becoming important that they can make their own high quality TV shows as well to keep ahead of each other.

I believe that Netflix will continue to grow as a company. Each year not only do they add more TV shows and movies, but they also have their own movies and TV shows. They are changing the game when it comes to watching TV and giving its customers a great viewing experience. I don’t believe that Netflix can be acquired by any of its competitors. If anything it could acquire a smaller company within the industry. It is important for them to keep their entertainment new and of high quality to keep their viewers entertained.

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