Netflix, Media Streaming, and the 

Revolution of Digital Material

Robin H.

Death of Distance

  • Netflix was founded in 1997 simply as a service to sell a product over the internet.
  • The advent of home movie delivery and subscription service eliminated the hassle of having to go to a video rental store and then having to go return a movie.
  • Movie and Tv streaming services offered by Netflix have become immensely popular and have made it possible to access a library of media from one's own home.
  • Netflix has 70 million members in over 190 countries today.

Economies of Scale

  • Netflix must acquire the rights to certain tv programs, movies, and exclusive media
  • The cost of expansion becomes marginally less, particularly when Netflix has already acquired to rights to licensing or a specific company.
  • For example a deal with Disney can potentially lead to an accompanying deal with LucasFilms.

Network Externalities

  • An increasing in paying subscribers can lead to streaming or broadband issues with Netflix

  • A positive network externality of Netflix is the addition of more content to accommodate a broad range of people

Exposure Selection

  • People create their own digital footprint when it comes to Netflix accounts.
  • Within one netflix subscription, family members within one household could customize their own viewing experience
  • With these accounts viewers are given personalized recommendations and their favorites genres are even taken into account

Netflix, Digitalization, and Why its Here to Stay

  • Netflix has changed the general landscape of movie and tv entertainment
  • Netflix is cheap, widely available, and has a consistently updated library whose function is to appeal to the viewer.
  • Netflix offers great ease of access that allows streaming across various devices such as tv, personal computer, mobile phone, and tablet
  • Netflix has an advantage of being first over comparable services such as Hulu and Amazon Prime
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Public - 7/14/16, 2:48 AM