美國串流影視產業之競爭分析與成長策略探討 – 以Netflix為例

Abstract

OTT has been developed for years due to bloom of internet service and technology progress. It has also changed consumer’s behavior. Nowadays streaming media is becoming replacement of cable-TVs, and video-on-demand service enables audience to watch programs whenever they like. Netflix has been the leader in OTT industry for a decade and made great success. But during past years, mega mergers such as AT&T acquired Time Warner, Disney acquired 21 fox century happened. The new entrants with well-known IPs are expected to disrupt the OTT industry landscape. These M&A deals also implied that intense competition is triggered off. On the same time, Netflix faced its first decline of subscription base in 2019 Q2, the competitiveness of Netflix also came under question. This paper is a case study of Netflix’s feasible strategy under the competing circumstances. Through industry analysis, we realized Netflix has played a main role of content aggregator, but also a content provider itself. In addition, it has various access to reach end users via cable TV, tablets and mobiles. The value chain has been changed and hence most of cost can be saved compares to traditional media. We can also see other companies began to do vertical and horizontal integration facing the behavior change of audience. It proves that in order to stay competitive, diversification is essential. After conducting a strategic analysis of Netflix, we realized it has focused more on internal growth strategy rather than external growth strategy. It also has partnered up with cable operators and end-device companies to raise the accessibility to users. And it has reached out to local or international studios for exclusive content. Even though Netflix is surpassing other players now, the challenges have never vanished. the negative Free Cash Flow and the slowdown of user base will force Netflix to figure out new strategy to keep its leading position in the long run. Not to mention new players are joining the battle successively. Due to the forthcoming competition, it is advised to deepen the relationship of companies in different industry and launch strategic alliance with big group rather than single small ones. Set up joint venture with scalable companies outside US is also recommended. To wrap up, the core of suggestion to Netflix is that if one wants to go far, go together would be better than go alone.