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The Chasm in Netflix: Figure 1 Shows Netflix's Net Income From 2000 To 2019 (In Million USD)

Netflix started in 1997 as a DVD rental service sent by mail and launched streaming in 2011, allowing users to watch movies and TV shows on internet-connected devices. As the market leader in online streaming, Netflix has faced challenges penetrating the market from competitors and piracy. However, Netflix has grown its subscriber base significantly through strategic investments in technology and original content production, which has increased its annual revenue and market share over time.

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190 views

The Chasm in Netflix: Figure 1 Shows Netflix's Net Income From 2000 To 2019 (In Million USD)

Netflix started in 1997 as a DVD rental service sent by mail and launched streaming in 2011, allowing users to watch movies and TV shows on internet-connected devices. As the market leader in online streaming, Netflix has faced challenges penetrating the market from competitors and piracy. However, Netflix has grown its subscriber base significantly through strategic investments in technology and original content production, which has increased its annual revenue and market share over time.

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Prettyrush. Co
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The chasm in Netflix

Netflix, Inc. is a US-based online movie rental subscription service provider. This
company are targeting their customer can instantly watch unlimited TV shows and movies
streamed over the Internet to their TVs, computers and mobile devices. The company first
started in 1997 by having DVD’s rental through e-mail and only in 2011, it offers the ability
to receive streaming content through PCs, Macs and other Internet-connected devices such
as television and Blu-ray players, mobile devices, game consoles and digital video players to
their subscribers. The numbers of its subscriber keep constantly growing from each day and
Netflix can be said as the market leader in this new type of broadcasting. However, for such
big and high-tech company, there is a difficulty in getting its target market especially in early
stage of introducing a new product line. There will be always a technology enthusiasts and
visionaries, but how long does it take for the early adopters to finally accept this type of
innovation.

In broadcasting sector which involving OTT (Over the Top) services, Netflix is the
market leader. It is hard to say that Netflix does not has chasm in the market penetration.
This is because Netflix has suffered badly when there is a huge number of dotcoms
awakening in 2001. Netflix had to fight with the rise of other online service video, setting
aside the pirated entertainment video content. Blockbuster even offered to buy Netflix,
however Netflix refused to get out from this sector.

Figure 1 shows Netflix's net income from 2000 to 2019 (in million USD)
Crossing the Chasm: Netflix

Netflix then trying to get up by made its IPO (Initial Public Offerings) on Nasdaq in
2002. IPO is a company's first sale of stock to the public. Securities offered in an IPO are
often, but not always, those of young, small companies seeking outside equity capital and a
public market for their stock. Netflix keep on investing in research and development to
understand customers future needs and wants. Five years later, it introduces streaming that
could change everyone lifestyle. The following years then Netflix has partnered with various
technology companies to diversify the ways ones could access entertainment video contents
in a one platform. By 2011, it has upgraded its level by enabling watching Netflix through a
PS3, an Xbox360, or an Apple device. This is such a new level of innovation that anybody
could not thought. To the central of its success, it uses an algorithm that enables its
subscribers to binge-watch the content that they liked based on their previously watched or
searched history. Netflix keep on coming with the new ideas which has made Netflix as the
top in market is that it introduces Netflix Original - their own produced contents. With
topping in nominations in many awards such as Oscars and Emmys, a 17-year run by HBO as
the top-nominated network was left far behind Netflix.

Figure 2 shows Netflix's annual revenue from 2002 to 2019 (in million USD)
Reference:

 Smith, A. Y. (2015). Netflix: a company analysis.


 https://www.businessofapps.com/data/netflix-statistics/
 https://www.nasdaq.com/articles/if-you-invested-%24100-in-netflixs-ipo-this-is-
how-much-money-youd-have-now-2019-11-27
 https://www.statista.com/statistics/272545/annual-revenue-of-netflix/
 https://www.statista.com/statistics/272561/netflix-net-income/

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