Netflix In The Us

NETFLIX IN JAPAN

Table of Contents
Assets and strategies adopted by Netflix in the US………………………………………... 2
Netflix’s Strategy for Japan…………………………………………………………………… 4
Comparison of US and Japan………………………………………………………………… 7
Political and Regulatory Differences…………………………………………………………. 8
Environmental and Cultural Differences…………………………………………………….. 9
Conclusion and Recommendation on Netflix expanding in Japan……………………… 10

Assets and strategies adopted by Netflix in the US
The manner in which Netflix adds value:
Netflix started as a DVD by mail business and emerged as a leader in this industry. Netflix configured urbane systems making it cheaper and convenient for its subscribers to order DVDs, which significantly added to its success. Since

There will be phenomenal growth for Netflix as more customers prefer the ease of consuming entertainment online as opposed to the traditional DVDs. Netflix became profitable in its operations mainly after changing prices in 2011. It increased its prices by 50% but also added more subscribers to the plan thus increasing flexibility. Before the price hike, the subscription costs were $7.99 for two viewers which now changed to $11.99 for an additional two viewers thus making it $11.99 for four viewers. Since this plan reduced each subscribers cost from $3.99 to $2.99, more people got attracted to Netflix increasing the company’s revenues and customer

The negotiation efforts resulted in expensive contracts. Since Netflix could not license with these studio owners on attractive terms it decided to enter their market. Netflix adopted a new strategy called backward integration in which they created their own content by creating their own studio. Ted Sarandos, Netflix’s chief content officer, commented about this new strategy that “the goal is to become HBO faster than HBO can become us.” This technique added two million customers in a span of three months in 2013.
Also, Netflix’s exclusive features such as providing recommendations to consumers based on past viewing data, and a user-friendly interface to customers, makes customers return to Netflix, thus promoting loyalty. The first month free subscription also helps customers explore the contents on Netflix and provides them with a high quality service that helps customers develop brand loyalty, and choose Netflix over other