Email RIS file
Bookmark
Report an Issue

The Economics of Netflix : A Solid Foundation or a House of Cards

Author:
Busalacchi, Alexandra
Published:
[University Park, Pennsylvania] : Pennsylvania State University, 2015.
Physical Description:
1 electronic document
Additional Creators:
Jackson, Matthew and Schreyer Honors College
Access Online

Availability

I Want It
I Want It

Finding items...

Restrictions on Access:
Open Access.
Summary:
The purpose of this research is to analyze the online television provider Netflix and to determine whether its business plan is viable and sustainable. Netflix is a pioneer and leader in the online television subscription service model, and as a result, its success or failure can have a large impact on its competitors and on the media landscape as a whole. After considering existing research into subscription service models such as the one used by Netflix in slightly different industries, as well as research on effective means of determining prices for subscription services, similar methodology was applied to Netflix. By analyzing financial data from Netflix, including its technology and development costs, subscriber numbers and revenue over time, a thorough examination of Netflix's successes and failures over the course of its existence were noted and analyzed. The data shows that Netflix's costs are scalable, meaning marginal costs are decreasing and the company can continue to expand. While the profitability of the DVD subscription service is waning, international expansion continues to drive overall growth and profit increases. While Netflix appears to be in good financial standing presently, the emergence of serious competitors will pose a threat in the future, and Netflix must continue to monitor its expenditures and returns on original programming to remain profitable.
Other Subject(s):
Genre(s):
Dissertation Note:
B.A. Pennsylvania State University 2015.
Technical Details:
The full text of the dissertation is available as an Adobe Acrobat .pdf file ; Adobe Acrobat Reader required to view the file.
View MARC record | catkey: 15440003