Please describe the competitive forces in the marketing environment of Netflix. To know and understand your competitors, you have to analyze both the micro and macro environment.
The average American watches as much as five hours of television everyday, and of them own at least a TV set, and own a computer with Internet access.
The networks show feature films and also invest heavily in original series, for example of and strategy gave them a really good reputation.
For example, they won 25 Emmys in 2010, which resulted in a growing business, where their network is close to 20 million subscribers in USA.
Broadcast networks provide television stations across the country who then provide the households.
Broadcast networks mainly get their revenues through advertising, but since consumers nowadays have the options to choose and may prefer channels with no advertising, the broadcast has declined. While the broadcast popularity is declining, the basic cable networks, have risen in popularity (Exhibit 2).In Exhibit 4, it is evident that stock prices are volatile. You also have to keep in mind that around 2011 it was a real for services.More and more people have smartphones and access to Internet, which makes us (generation Y) more demanding in terms of what we can access through these new technological developments.For example, how FX created an original series called and how AMC created and Basic cable networks still rely on revenue coming from advertisements, while Premium cable networks are free from advertisements.Premium cable networks rely on subscription fees paid viewers and that come on top of the basic cable package.That meant that they had the potential to grow just from solely being a streaming service, to also producing shows.Another reason why Netflix is so interested on purchasing House of Cards, is because they would get exclusive rights for the series in USA and Canada, which meant that no other cable network would be able to air House of Cards.The second concern was to do with the marketing of the series.If MRC had chosen to work with one of the established premium cable networks, they would have a secure knowledge of how an original show would be marketed.When it comes to Netflix you have to pay to get access, and it is basically the same amount that you have to pay for the premium cable networks, which is one reason why these are the main competitors.Another reason why they are the main competitors is because now you can access the premium cable networks online and watch the series and movies from your phone or computer, meaning you need a second window.