Porter's 5 Forces Netflix, video-on-demand industry, VOD video-on-demand, Apple, Netflix group, YouTube
Netflix was founded in 1997 in Scotts Valley. The service was only set up and made available about 1 year later, on April 14, 1998. In France, it was not until 2014 that the famous platform was finally launched. The worldwide launch took place in 2016, almost 20 years after its creation. It is now present in 190 countries. The platform had 54 million subscribers in 2014, and in July 2019, this figure rose to 160 million, of which 151 million were paid subscriptions, making the platform one of the main market leaders. Each year, there is an increase of more than 25% of this figure, a new record each quarter. For example, since 2011, its client base has grown by 400%, with a turnover that blithely exceeds $10 billion. Looking at the stock market, Netflix is very successful on Wall Street, where prices are soaring daily. The figure now stands at $108 million. In the space of 5 years, this figure has also increased by 20%.
[...] Customers find the service very expensive, and above all, it does not keep up with the times. Consumers don't like to be engaged, and Canal only offers one-year engagements, which deters many customers, who naturally prefer Netflix, which is much cheaper with a better catalogue. Conclusion The study of these 5 forces of Porter will have enabled us to realise the extreme solidity of the Netflix platform and this in spite of ever- increasing competition. Indeed, over the years Netflix has been able to seduce a large panel of consumers thanks, among other things, to its low prices and its almost unlimited choice of content. [...]
[...] Porter's 5 forces for Netflix A. The threat of potential new entrants It's no longer a secret that VOD is a popular industry that promises to evolve again and again over time. For this reason, a good number of players often try their luck by trying to enter this market, with the hope of perhaps succeeding in dethroning the giant Netflix. It is a proven fact that the French are more and more fond of video on demand, and if Netflix has the largest number of subscribers, other competitors could very quickly emerge and manage to compete with the group. [...]
[...] Porter's Five Forces - Netflix I. Introduction A. Netflix Netflix was founded in 1997 in Scotts Valley. The service was only set up and made available about 1 year later, on April In France, it was not until 2014 that the famous platform was finally launched. The worldwide launch took place in 2016, almost 20 years after its creation. It is now present in 190 countries. The platform had 54 million subscribers in 2014, and in July 2019, this figure rose to 160 million, of which 151 million were paid subscriptions, making the platform one of the main market leaders. [...]
[...] This is an ever-changing market, hence a real threat to Netflix. Actors come from all over the world. Series are on the rise, much more than films, and the platform that will be able to compete with Netflix on the number of these series will undoubtedly have won its bet. The biggest problem for the American giant is that these new players tend to take a little of the best and most efficient on the different platforms to integrate it into the new one, and this is very dangerous for Netflix. [...]
[...] Cinema poses a relatively low threat, which has little to do with the services offered by the platform. Consumers go to the movies once a week for the more avid, while Netflix is watched almost daily by a large majority of subscribers. For some, the platform is gradually succeeding in even replacing television, which many people between the ages of 15 and 40 hardly watch anymore. C. The bargaining power of clients This power is, as you would expect, very high. [...]
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