It is nowadays a trend to watch an episode of a series on Netflix after school, work and sports. It is a leisure
activity for the new generation, where more and more choice is available.SOURCE Many film distributors such
as 'The Walt Disney Company' are starting to specialize as an online streaming service of films and
series.SOURCE This study examines what the arrival of Disney+ (online streaming provider ) for an effect on the
American Netflix.
Brief introduction of the American company Netflix.
Netflix (1997) started out as a video and DVD rental company by mail. The company was founded by Marc
Randolph and Reed Hastings, two Americans. Customers could purchase a subscription from Netflix, which
allowed them to rent a number of DVDs or movies delivered in red envelopes. On September 22, 2010, Netflix
turned to international streaming, with Netflix now available in 130 countries. Netflix is not available in
countries subject to US sanctions such as; Syria, peninsula 'The Crimea' and People's Republic of China. Today,
Netflix is focusing more on producing their own copyright series known as "Netflix Originals." These series are
only available on Netflix(Lex Bird Media, 2014).
Current situation at Netflix
The Netflix movie and series library consists of many films, including many films from the film distributor Disney
(Marvel series and Star Wars films). Disney+ seized these movies, forcing Netflix to remove Disney movies and
series from their online streaming provider. The Disney films and series are very well known to many people in
the Netherlands. Because of this, the enthusiasts will choose one of the following scenarios.
- Scenario 1: Choosing 1 online service provider, so 1 subscription.
- Scenario 2: Keeping their current subscription and choosing an additional online service provider, so 2
subscriptions.
Choosing the above scenarios depends on, among other things, maximum budget to spend, income, number of
people and taste for specific films and series.(Segers, 2019),(Pedd, 2019).
Cause
The reason for this investigation stems from the fact that there is a new entrant in the online service provider
market namely; Disney+. This research examines what will change for American Netflix with the arrival of
American Disney+ in the online service provider market. It looks from the perspective of Netflix and how they
view the problem.
Objective;
The goal of the American Netflix is to create a sales strategy to ensure that they will maintain their market
share in the online streaming market.
Issue:
Main question:
How can US Netflix respond to the arrival of US Disney+ through a sales strategy and thus maintain its market
share in the online streaming market?
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