Netflix Firm’s Capital Cost of Distributing Content

Subject: Company Analysis
Pages: 1
Words: 279
Reading time:
2 min
Study level: Bachelor

First, in the streaming market, the capital cost of distributing content to businesses is expensive. Netflix has already expressed concern about this, as content expenses have risen faster than revenue in the past years (Ranjan et al., 2019). It is even improved for Netflix, which devotes itself to and produces its unique programming. The joint rivalry from illicit facilities such as The Pirate Bay and Terrarium TV, which provide content with no digital rights, burden Netflix to continuously update its website and app (Ranjan et al., 2019). Finally, competition in this sector is severe, especially when competing on a technological level and content generation.

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Developing high-speed Internet service for its users and reducing content expenses by producing its content are two of Netflix’s important strategic elements. Furthermore, it is expanding abroad to tap into a new market with new customers and expand its excellent television series offerings (Ranjan et al., 2019). Thirdly, Netflix has continued to expand its service into new countries where it can grow and increase its profit margin and enjoy other external market advantages. Finally, Netflix seeks to entice new customers by increasing the number of high-quality television shows by subscribing to the bundle of Netflix free charge.

The three conglomerates provide Internet users with a different way to watch movies. Netflix’s unique elements, such as brand familiarity and algorithms, help viewers find movies and television series (Ranjan et al., 2019). Netflix’s assets and its procedure for endorsing original and old movies and episodes to users and their ability to market themselves have resulted in extraordinarily high global brand awareness (Ranjan et al., 2019). Netflix distinguishes itself from the competition by generating and distributing original content.


Ranjan, A. A., Rai, A., Haque, S., Lohani, B. P., & Kushwaha, P. K. (2019). An approach for Netflix recommendation system using singular value decomposition. Journal of Computer and Mathematical Sciences, 10(4), 774-779.