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The Rise and Fall of Netflix: What Happened and Where Will It Go from Here?

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The rise and fall of Netflix: What happened and where will it go from here? (2014)

The article which was written by Allen, Feils, and Disbrow, was published in “Journal of the International Academy for Case Studies” in 2014. The paper presented as a case study concerns Netflix analysis. Moreover, the article also broke down several issues from financial statement condition to corporate strategy and ended up with the review of Netflix’s international expansion. The author strictly emphasized on the expanding decision in 2011, as some components including price hike, poor management decisions, technology advancement, and increased competition resulted into a drastic decline in the company’s share price.

In specific, the authors noted that Netflix had offered streaming services in Canada in 2010, followed up with continually expanding to the Latin America and Caribbean markets like Brazils, Peru, Mexico, and Colombia. However, Netflix had to face many problems by making this decision; some notable issues could be listed:

1. Netflix has to put tons of effort into setting up an international library with enough content for all the expanded countries

2. A significant internet wire was required for movies streaming with the minimum of 800 kbps, which at that time was not easy to find based on the existing digital infrastructure.

3. Netflix had to overcome the different regulatory environment various from distinguished foreign markets

4. Finally, the expansion was very costly, and the company could consider using their capital on extending the U.S. Netflix library instead.

Overall, the authors insisted that the “push to go international” from Netflix was a risky move, as they expected to get an answer on whether this decision could pay off in the long-run or not.

Netflix and the maintenance of television genres out of the flow (2015)

This article was written by Almeida Lima, Gouveia Moreira, and Costa Calazans in 2015 and published on “Matrizes.” The paper showed how programs made aside the television flow could still be considered as television products, and Netflix was presented as a perfect showcase. The authors also pointed out the unique components that make Netflix’s products stand above their competitors like Hulu, Golias, and Amazon.

According to the authors, Netflix had shown its potential in producing TV shows with multiple acclaims on the series such as House of Cards; Orange is the new black, and Hemlock Grove. On the one hand, these series have different contents but remain the fundamental factor that represents the essential components of TV shows: argumentative plots, flawed and often impish protagonists. Moreover, when discussing the character development and plot in the series mentioned above, all the protagonists had various emotional layers, personality implication, and conflicts, which helped the series avoid the cliché occasionally appeared in other series. However, the crucial elements that defined Netflix’s accomplishment are instead of broadcasting one episode every week; the company decided to post the whole season at once, which give the audience the opportunity to control their watching pace. Another reason behind referred to cliffhanging moments, as Netflix’s spectators can follow the series through multiple episodes at once.

To summarize the contents, the paper concluded that Netflix had created many series which still included some relevant attributes compare to general TV shows while setting up their broadcasting approach. Netflix also recognizes the importance of audience evaluation, since it would help the company understand more about their customers and ready to adapt to any circumstances. The success of Netflix also indicates the fact that consumers are the one who holds the key to power now, not the broadcasters. As for the theme of the article as a whole, this paper showed a more positive perspective on the big step that Netflix had taken back in 2013 and tried to break down the elements behind the achievements the company had received by creating their products started four years ago.

Data management in audiovisual business: Netflix as a case study (2016)

The article was published in the journal “El Profesional De La Información” in 2016, and written by three authors Fernández-Manzano, Neira, and Clares-Gavilán. By highlighting the importance of data management as the ultimate strategy for media businesses in the era of global expansion, the authors took Netflix as a typical example in supporting their theories. Also, the paper also introduced the term Business intelligence by referring to Netflix’s monitoring and application of its algorithms in the decision-making process.

Afterward, the article concentrated on reviewing the definition of big data and data management by showing the authors’ research that proved the influence these factors have in shaping the broadcasting business. According to the writers, Netflix truly understands and value the collected data from users as a generating force. Based on the IT data in 2016, with around 81 million subscribers worldwide, Netflix provided approximately 125 million broadcasting hours each day. All the individual information then gathered and analyzed by Netflix to understand the consumers’ preference and to set specific goals for the company. Netflix has designed a flow of data management process which helps them taking advantage in such competitive environment. According to the writers, this business model has placed the customers at the core of the company’s decision-making process, and Netflix had used this source of information wisely to boost members’ retention, reduce cancellations, achieve long-term loyalty, and acquire positive satisfaction rating for their product. Compare to the two previous articles; this paper focused more on analyzing the critical factors behind the success of Netflix in the recent period through examining the reasonable use of data to



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