Dow Jones Industrial Average and Netflix Essay example

Submitted By kiebaker
Words: 615
Pages: 3

1. Product – Netflix’s product is a service, and one that is catching on like wildfire given the never-ending amount of television and film we are inundated with as consumers of visual media these days. Netflix started out as an online renter of DVDs to consumers, but has morphed into something much more important in recent time. With home broadband connections becoming more readily available and affordable, Netflix is uniquely positioned to leverage these new technologies. They recently added streaming capabilities to their subscription service for immediate delivery and consumption of video products online. So you can still rent DVDs that will show up in the mail, but you can now also access a huge portion of their library immediately and without commercial interruption on an ever-increasing number of electronic devices.

2. Price - For as low as $8 per month one can view unlimited streaming video directly from Netflix and have one physical DVD rented out to them at a time. For a few more bucks you can rent multiple DVDs at one time to satisfy those weekend-long marathon movie sessions. You can stream video to the Xbox360, the Playstation 3, the Wii, the iPhone and iPad, your personal computer, and even more devices as time goes on. Did I mention that you get all of this for less than the cost of two premium Starbucks coffee drinks per month? Seriously, they’re actually not charging enough for all of this in my opinion.

3. Promotion – Netflix has done some mass media advertising in the past where its central theme was that of DVD delivery. As their model has changed to focus more on the streaming aspect of content, we have seen these ads all but disappear. Netflix is ostensibly focusing their marketing efforts towards getting their logo placed in prominent positions on the various devices that support their service. They understand that not everyone will buy a Netflix subscription right now, but that just about everyone owns (or eventually will own) a piece of hardware that can support their service should they chose to do so in the future. This approach is a win-win for all involved. The Netflix logo becomes another marketing bullet point for the hardware manufacturers who, in turn, promote their product as Neflix-ready. Netflix gets the branding exposure, and the device manufacturer gets the sale over its competitors.

4. Place – As with any web-based…