If you were in charge of Netflix, what would you do? See Effective Management p2.

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thanatassa | College Teacher | (Level 3) Educator Emeritus

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As the description of the case study adumbrates, the main issue Netflix faces is competition for eyeballs. If it wins that competition, revenue streams and and personnel issues will follow. If it does not do well at continuing to attract subscribers, then the company will fail. Thus the main focus of the C-suite team should be on building a subscriber base. This is, in fact, what the company is doing, sacrificing profitability for a very successful focus on subscription growth, by keep prices low and making viewing advertisement-free, something that gives it a competitive edge over Hulu.

To avoid the issue of competition with studios and other content providers, Netflix needs to ensure its access to high quality content by increasing control of its content pipeline, because the key thing that matters to subscribers is content, or what shows they can watch. Netflix is beginning to create its own series, including the very successful "House of Cards," which serves to differentiate it from other streaming services. The major challenge for management is how to obtain content and integrate that pipeline, which is a creative one, with the basic technology and logistics focus of the rest of the company. This can be done several ways, either by building relationships with studios that produce content, acquisitions, or internal development. In all cases, these involve interfacing with a creative rather than technological corporate culture. Because that is the most complex challenge for Netflix, it is the one on which management needs to focus.

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