An Analysis and Prospect of Video Streaming Industry: Evidence from Netflix Inc

Abstract

The purpose of this paper is to explore the business model of the video and streaming industry and give practical suggestions combining the current situation and future forecast. This paper starts by reviewing the context of the industry as a whole. The author then demonstrates Netflix, a successful international streaming service business that offers various online products, that could be made to the conceptual frame of reference for the video and streaming industry. By utilizing Netflix as a case study objective in the context of its business performances from diverse divisions, the author examined factors that contributed to its success, product-line design, revenue and cost relationship, organizational pattern, possible risks, technical risks, financial risks, and customer risks. Based on these analyses, the author can thus able to summarize the Netflix model as a possible model for an Internet network in the video and streaming industry and the new picture for the developing video streaming ecosystem, and built up strategies along with recommendations on how to behave and develop under current market trend for start-ups and other companies looking for efficient business patterns.