1. What are three challenges that Netflix faces?
Netflix has multiple challenges and will keep getting new challenges as technology advances. Netflix is always trying to be number one and will keep innovating so there are or close to number 1. The first challenge netflix faces is the challenge to get the content on your phone, PC, Xbox, PS4 or the Wii, different content and the structure needs to change for each device. The next challenge that netflix faces is they are always trying to have new content, and exclusive content that you can only watch on netflix. Netflix also faces challenges with major competitors, these major competitors are apple and google and just recently Disney+ just came out and is hitting netflix hard.
2. What are the key elements of Netflix’s strategy today?
The key elements for netflix is making deals with other companies/producers to create new content for them or even upload legal content. There other key element is high speed internet. Netflix is teaming up with comcast to improve their processing speed, to create a better user experience.
3. Why is Netflix in competition with Apple, Amazon, HBO, and Google, and what strengthens does Netflix bring to the market.
Netflix has a competition with the following companies because they all offer similar services. Amazon, HBO, and Apple all provide a streaming service that streams videos and other content. Some strengths that Netflix bring is its name, Netflix has one of the most known company names, also netflix was one of the first companies to allow streaming services to consumers for a monthly subscription.
4. Identify three online sources of content that exemplifies one of the three digital content revenue models. (Subscription, A LA carte, and advertising supported). Describe each site, how it provides value, and which type of revenue model do you prefer and why?
Hulu, is a subscription based company that you can only pay through monthly subscriptions. Hulu has a huge advantage by having next day streaming shows while other competitors have to wait for the whole season to come out.
Amazon prime video, this is a form of A LA Cart, because it allows you to do a
subscription free, and you can choose what show channels you want like Starz or HBO.
Facebook is advertisement service and is revenued by the use of adds, it allows the consumer to use it for free at any time with no restrictions.
When it's all said and done I prefer the subscription model, I hate ads and i'd rather just have a small monthly fee for add free.
5. In 2014, Amazon bought Twitch for almost 1 billion dollars. Why would Amazon spend so much money on Twitch?
The reason why Amazon bought Twitch was because Amazon can gain value from twitch by gaining there users and branching out into a different field instead of ecommerce. Also twitch is an advertising and subscription based company that means Amazon can then make more money through the advertisements. When Amazon did buy Twitch it brought them into a whole new market which Amazon was looking for.