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Netflix Case Study

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27 views

Netflix Case Study

Uploaded by

Salma Ajsjxn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Study: The Streaming Challenge: Adapting to Evolving Viewer Behaviors

Executive Summary

Netflix, once the undisputed king of streaming, has faced growing challenges in recent years due
to a perceived decline in content quality. This decline has led to a surge in account sharing, as
subscribers seek to maximize their value by sharing their accounts with friends and family. As
account sharing becomes more prevalent, Netflix's revenue model faces pressure, raising
questions about the company's future.

Background

Netflix revolutionized the entertainment industry by offering on-demand streaming of movies and
TV shows. Its vast library of original content and curated selections quickly made it a household
name. However, in recent years, there has been a growing sentiment among subscribers that
Netflix's content quality has been on the decline. Critics argue that the platform has become
oversaturated with generic, formulaic content, and that there is a lack of groundbreaking or
critically acclaimed original programming.

The Rise of Account Sharing

The perceived decline in content quality has led to a significant increase in account sharing.
Subscribers, frustrated with the limited selection of high-quality content, have turned to sharing
their accounts with friends and family to reduce costs. This practice has become so widespread
that it has become a cultural phenomenon, with social media platforms filled with discussions
about account sharing and recommendations for popular shows and movies.

The Impact on Netflix's Business

Account sharing poses a significant threat to Netflix's business model. As more subscribers share
their accounts, Netflix's revenue per user declines. This can make it difficult for the company to
justify the costs associated with producing original content and maintaining its vast library.
Additionally, account sharing can lead to a loss of subscribers as users who are sharing accounts
may decide to cancel their own subscriptions.

Potential Solutions

To address the challenges posed by account sharing, Netflix may consider the following
strategies:

 Increased investment in high-quality content: By focusing on producing more critically


acclaimed and original content, Netflix can attract and retain subscribers who are seeking
quality entertainment.
 Implementing stricter account sharing policies: Netflix could introduce measures to
limit account sharing, such as charging additional fees for multiple users or implementing
geographic restrictions.
 Exploring new revenue streams: Diversifying revenue sources, such as offering ad-
supported tiers or licensing content to other platforms, can help mitigate the impact of
account sharing.

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