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NETFLIX Free Resources
Alliances with ebooks we...
Alliances with ebooks were important here as well. Staying ahead of the competition proved to be a difficult task, as pure play music on disk and ebook entrants made extension of the Netflix brand particularly risky. Similar to Amazon.com, Netflix would need to focus on the core competency of convenience, efficiency, performance,reliability, and personalization to continue to bolster their brand. Finding new revenue streams was key. Using the Value Framework to analyze strategy, the key to company growth was a focus on all aspects of PTP, and careful growth into other areas of "household entertainment".
Netflix Evolution:
* Streaming and downloadable movie and film content: Using a combination of broadband and multicast backbone infrastructure, Netflix provided files for storage or single play. Downloadable movie trailers linked to direct ordering the problematic issue of consumer storage continued to lag behind file content size. However, movie trailers can capture consumer intereste and promote DVD rental, increasing the total number of movies rented and revenue as well.
* Distribution of online trailers: This can also be a cost that studios bear, but use of the Netflix brand adds value to a third party Internet distribution channel. Netflix will recapture the customer after they have viewed the film live in a theatre.
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