Posted: December 9th, 2014

Netflix in 2012 Case – Discussion Board Questions

Netflix in 2012 Case  – Discussion Board Questions

Read the section in chapter three of the eBook about 5 Forces Analysis and Driving Forces. The five forces model of competition measures the intensity of competition within an industry. Driving Forces are the things causing an industry to change.
Discussion Post Assignment:
1) A movie studio makes a movie then wants to get money for letting people experience it. They don’t really care which way we do it. We can experience this movie in a variety of ways, inside or outside of our home. What are the various ways that a movie studio can get us to pay money to consume their product (a movie)?

2) One of those ways is to let us rent the movie. What are the various different methods or ways we can RENT a movie? (the case describes at least 4)

3) They way we usually consume movies is different from the way our grandparents did.  They went to movie theaters and we usually buy or rent a movie to watch at home or online. Even how and why we rent movies has changed over the years. People used to rent movies by driving to Blockbuster and renting a VHS tape. Things have changed with technology, customer preferences, competition and the internet.  What is changing about why and how and where we rent movies?

4) You will be asked to perform a 5-forces analysis for your case assignment. In preparation for this, think about the various 5 forces of the Movie Rental Industry and answer the following questions:
a) Who are the various rivals who compete in the movie rental industry?
b) Who are the customers of the companies in the movie rental industry?
c) Who are the suppliers of the companies in the move rental industry?
d) What are substitute products that we could choose to buy instead of renting a movie?
e) What are some companies that do not currently compete in the movie rental industry, but could choose to become new entrants into this industry?
5) What were Netflix sales in $ (Revenues) in 2011?   What was Netflix $ profits (Net Income) in 2011?

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