What strategy will ensure Netflix’s continued success as an innovative leader in the media industry?
Netflix had achieved tremendous success through continuous innovation and disruption—even if it meant the cannibalization of its existing businesses. But questions remained as to whether Netflix’s monthly subscription model could continue to sustain the high costs of developing original content in multiple countries. To what degree did original content help Netflix attract and retain subscribers? Could Netflix charge high enough rates and acquire and retain enough subscribers and to justify its content investments? Should Netflix’s strategic focus be third-party content aggregation, or should the company continue to develop itself as a premium brand? This case asks students to address these questions in order to determine Netflix’s best strategy going forward.
Case ID: 160403