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Traditional Television Distribution And The Rise Of Netflix

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Traditional Television Distribution and the Rise of Netflix
Background
In the recent past, there have been so many disruptions in various industries that have
changed the status quo forever. One area where such changes have been monumental is in the
media and entertainment industry. The changes that are occurring in this field are of huge
magnitude and quite uncontrollable. There are now unprecedented falls of box office receipt
sales, and studio heads are also dwindling. Netflix is the root of all these disruptions. In 2018, the
firm had over 125 million subscribers, and the rate of growth seems to be gradually improving
every other year (Burroughs, 2019). The media industry has been seriously disrupted by the
advent of Netflix and other streaming services. YouTube and Amazon Prime are also following
suit, which consideration portions of the media streaming market.
Traditional media and television organizations have to face the reality that these firms are
really changing the dynamics of how consumers access media content. In 2007, Netflix was just
beginning its streaming services (Lotz, 2016). The fact that viewers could get on-demand content
meant that Netflix was now more desirable than its traditional counterparts, who had stuck to the
model of showing what is currently trending to all their consumers. With Netflix, there were no
timeframes as to when the content could be watched, meaning that it was better for many
customers than the traditional media. The cable companies and television juggernauts were
forced to start offering content based on this on-demand model, but they still could not beat
Netflix in its own game. When Netflix started the provision of original content, the story
changed forever, and the relevance of the traditional television networks was significantly

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shaken. Netflix proved itself to be the best as far as series and original movies were concerned,
and this has continued to be the challenge that most of the traditional firms continue to face.
Problem Statement
Traditional media firms and television networks must come up with a workable strategy to
address the competition brought about by such disruptive technologies as Netflix, Amazon
Prime, and YouTube.
Alternative Solutions
Traditional media firms have several alternatives that they can pursue in order to compete
effectively with these new technologies. First, they can continue providing their traditional
business models but with comparatively affordable pricing. This will mean that they will have to
make significant cuts to their premiums and any other charges that they subject their customers
to. However, this option does not seem to have any future because today's media buyer seems to
be more concerned with convenience, quality, and great serviceand this is something that
Netflix has already delivered to them. It will, therefore, be quite difficult for these traditional
media firms to continue doing what they have always done and expected and tangible fruits.
Alternatively, the traditional media firms can enter the territory of Netflix and Amazon
and bring about far-reaching disruptions into this oligopoly. Luckily, most of the traditional
media firms already have the necessary resources to compete with Netflix since they can create
their own content, build their own online infrastructures, and come up with competitive pricing
models while maintaining quality, convenience, and great service (Laudon & Traver, 2016). This
is one step that can bring about magnificent changes into the war for supremacy in the domain of
television and media in today’s highly dynamic business environment. There is a need for these

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Student’s Name Instructor’s Name Course Date Traditional Television Distribution and the Rise of Netflix Background In the recent past, there have been so many disruptions in various industries that have changed the status quo forever. One area where such changes have been monumental is in the media and entertainment industry. The changes that are occurring in this field are of huge magnitude and quite uncontrollable. There are now unprecedented falls of box office receipt sales, and studio heads are also dwindling. Netflix is the root of all these disruptions. In 2018, the firm had over 125 million subscribers, and the rate of growth seems to be gradually improving every other year (Burroughs, 2019). The media industry has been seriously disrupted by the advent of Netflix and other streaming services. YouTube and Amazon Prime are also following suit, which consideration portions of the media streaming market. Traditional media and television organizations have to face the reality that these firms are really changing the dynamics of how consumers access media content. In 2007, Netflix was just beginning its streaming services (Lotz, 2016). The fact that viewers could get on-demand content meant that Netflix was now more desirable than its traditional counterparts, who had stuck to the model of showing what is currently trending to all their consumers. With Netflix, there were no timeframes as to when the content could be watched, meaning that it was better for many custom ...
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