Netflix Argumentative Essay

Netflix is continually improving its products and services to appease the consumers. One way Netflix has increased its marketability is through the production of the Netflix Original Series and globalizing the current streamlining Video on Demand or VOD. More recently, Netflix has spent $500 million on new programming in productions like "Making a Murderer," and "Jessica Jones" (Shaw, 2016). Thus, coincidentally Netflix is offering more choices and more options at a low price of the basic package around $8 for programming that represents its slogan "can't get it anywhere else" (Shaw, 2016, n.p.). The increase of programming only added to Netflix subscriber base of more than 100 new markets in China, India, and Indonesia in which Wall Street

cost more for the subscriber rate. For instance, in Korea part of the Asian market, the willingness to pay for streamlining services is astronomical with the Netflix plan that offers the most options of streamlining, HD, and downloads. It amounts to 14,000 subscribers at a rate of $12.3 USD dollars a month compared to China's 4.2 USD dollars (Kim et al., 2017). If more countries take advantage of the various content, technology and available services of Netflix, it is reasonable to point out that on average a $172, 200 monthly profit Netflix receives just from markets like Korea. Netflix market strategy is to continue increasing the content to secure payment that would incline subscribers to pay regardless of a price increase. Although there is a global market that Netflix asserts its business there are other competitors that also share in the marketability of adding production of original series, HBO, for example, has added more original series and extended its services globally with its parent company Time Warner (Rosoff,

Meaning that labor, facility development, obligations, interest on financial decisions, and technological advances have all added to the operational expense of Netflix. For instance, for technology and development, Netflix spent $852,098 in the year end December 31, 2016, on the infrastructure of the hardware to streamline VOD. Whereas in 2015 Netflix's allotted $650,788 which is an increase of 31% amounting to 10% of Netflix's revenues (Netflix Annual Report Period Ending 2016, 2017). In total Netflix's 2016 output of production came to a sum of $8,450,876 with only a return of the net revenue of $379,793 not including the comprehensive income gain or loss due to international taxes and foreign gains (Netflix Annual Report Period Ending 2016, 2017). Though in all appearance purposes Netflix not only met their financial obligations and expenditures of production in 2016 but also made 2.1% extra in revenue without factoring in the tax rate. However, with the additional services that Netflix added in 2016, it amounted to almost 2 million more spent on the output and advancements of production and only to gain $73,967 more additional net income than in 2015 (Netflix Annual Report Period Ending 2016, 2017). Seemingly,