Netflix Leading with Data:What advice would you give to the CEO of Netflix Essay

Case Netflix Leading with Data The Emergence of Data-Driven exposure Question What advice would you give to the CEO of Netflix?Digital distribution marketplace is undoubtedly the future of the delineation letting industry. Netflix has already taken a good lead in it but must have impertinent ideas to keep its prefer in the industry. Beating its competitors in the domestic market is important, however, Netflix should jump out of its possess circle into a new market to larn the first mover advantage. Looking at the global market, china is a good choice for Netflixs next station. Using the Porters flipper Forces model, Netflix can examine its advantages and disadvantages see whether entering China is good choice * talk terms power of customers China has a growing economy with a large assort of new middle-class, who be able and unforced to consume on entertainment. Nowadays, Chinese usually watch shoots on free websites with a low reckon lumber and slow Internet speed. W hile the number of people watching films are increasing, the picture quality is becoming more important for the viewing experience. Providing a fast, flexible and tall-quality service, Netflix can persuade many customers into its subscription model.* Bargaining power of suppliers Chinas film and TV show makers have been facing a study problem plagiarizing (including unpaid online watching), which substantially decreases their profits. They are finding a pathway to introduce their product to the customers. The advantages of plagiarizing products are the cheap prices and convenience, which Netflix can also provide. Netflix should cooperate with Chinese filmmakers to gain sources of authorized edition film databases and give out a lower price since the Chinese filmmakers are eager to run out of the bad situation.* hawkish rivalry Under the same business model, Netflix would be the first mover in the industry. Although China has a couple of(prenominal) subscription service websites , this is only a minor part of the industry. * Threat of new entrants The potential competitors have non released any big signals showing that they will enter this industry. Apples iTunes, as well as Amazon did poorly in China and have decided not to continue expanding. Netflix should cease this chance to enter and take Chinas market. * Threat of substitute products Chinas online distribution market is dominated by Youku,Tudou such online video provider however, their profit model is advertising fees, focusing on the quantity of visitors. With distinct service, its not hard for Netflix to occupy the market share. How to focus on the targeted group and how to persuade their potential customers, who used to enjoy cheap, even free resources online, to pay for a monthly membership, is a big concern to the corporation. To emphasize Netflixs higher quality service is of great importance.First, Netflixs engineering can help its members build up personal own styles videos at high efficien cy. Besides that, compared with the existing Chinese video websites, like Youku and Toudu, Netflix does not contain any advertisement forrader or after a movie. Those movies and TV shows posted on Netflix are mostly high rendering displays, and customers would like to pay for the HD movies, rather than trying to understand a blurry image on different websites. Furthermore, Netflixs new component called Friends allows movie buffs to share reviews and recommendations. In China, the website could cooperate with Douban, which is the largest and most influential film review website, and Renren, which is regularly called Chinese Facebook, so that Netflix could not only act as a video online leasing website, but also a social network website in Chinas market.Beside the high-level quality, Netflix should tour a large quantity of movies, especially the movies from Hollywood. With the Chinese movie import policy, China only import 55 movies in 2012. The number is comparatively small compa red with the amount of movies that the Chinese audience demands. Netflix could take the advantage to offer more American movies online, which is under laxer regulation both on amount and the content examination, to gain the customers who are interested to watch more foreign movies. 1 . Walker, Russell, and Mark Jeffery. Netflix Leading with Data The take of Data-Driven Video. Kellogg (2010) 6. 2 . www.douban.com 3 . www.renren.com 4 . China Communication research center, SARFT. Website http//www.sarftrc.cn/cn/ 5 . ,.