If you were in charge of Netflix, what would you do?  

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The main challenge Netflix has at the moment is competing for attention among other streaming services. These streaming services offer the opportunity to binge watch shows, keep up with sports, and to watch original series. As the CEO of Netflix, it is important to maintain current subscribers as well as...

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The main challenge Netflix has at the moment is competing for attention among other streaming services. These streaming services offer the opportunity to binge watch shows, keep up with sports, and to watch original series. As the CEO of Netflix, it is important to maintain current subscribers as well as expand the customer base.

One way to expand the base is to buy the rights to shows that will appeal to more demographics. Many people feel nostalgia for older television shows, and these programs can be had relatively cheaply on the market. Disney has acted on this strategy by offering classic Disney movies and cartoons on its streaming service.

Netflix can also obtain streaming rights to various sports leagues. While ESPN+ offers most of the more popular leagues, Netflix can cash in by offering more live soccer games. Soccer is one of the fastest-growing sports in the world and it would allow Netflix to expand its customer base in the United States and internationally. Netflix can also obtain the rights to show the new XFL League. This football league airs in the national football off-season. The league would probably jump at the chance to be streamed by a major service, and Netflix could gain more viewers from people who prefer to watch sports. If the league folds or if it is not popular, Netflix can end the contract with little investment lost.

Netflix realizes that many of its subscribers have multiple streaming services. They should not aspire to be the only service people need. Rather, they should use the lure of original content to bring in viewers from the United States and abroad.

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At the moment, Netflix finds itself with more competition than ever. Hulu, HBO, Disney, and others have built their own on-demand streaming platforms that threaten to bite into the market that Netflix successfully created. The challenge here is to retain old subscribers and continue to get new ones. When thinking about what you would do as the CEO of Netflix, you should keep this all in mind.

It is not necessary that Netflix be the only streaming platform that people subscribe to. Many people have subscriptions to several. Netflix just needs to remain one of the more popular ones that few on-demand subscribers would go without.

One thing that Netflix has successfully done is create its own unique content that can be found nowhere else. High-quality content that aims to please numerous and specific audiences will retain and gain many loyal subscibers.

However, it is very expensive to produce many of the high-quality shows and movies that Netflix is now known for. Another strategy could be to gain exclusive broadcast rights to movies and shows that cannot be found elsewhere. For instance, Netflix recently acquired the broadcast rights to Studio Ghibli (although not in Japan and the United States). It is conceivable that many people would subscribe to Netflix to watch content like this that cannot be found elsewhere. This is a relatively low-cost option for acquiring high-demand, exclusive content. Perhaps as the CEO of Netflix, you might attempt to get the broadcast rights to more high-demand content like this to help maintain a loyal customer base.

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Netflix is one of the great success stories of modern business. Reed Hastings created a company to solve a problem he personally experienced. Netflix was a disruptor in the entertainment industry, providing individuals a different way to view movies and TV. Netflix was not only creative in its original solution but has also lead the way in changing to meet the market needs by shifting to streaming when the technology was available. Because the success of Netflix has been built on innovation, that innovative spirit is what is going to keep the company ahead of its competitors. I would address this question by keeping the focus on the future of the industry. To keep Netflix profitable, the company needs to be constantly researching new technology and be able to predict the future of viewing before its competitors catch up. A disruptor in an industry that is not proprietary must continue to support innovation and cutting edge ideas to stay on top of profits.

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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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