Netflix has developed into a powerful presence in the global market, providing streaming services in over 190 countries. The massive success is building pressure on local media companies to think globally as Netflix continues to strive forward. David Wells, the Chief Financial Officer of Netflix, stated that 80 of their 700 original shows will have an international focus. While that may seem like a small ratio, it is a major feat in the media industry. Never before has a media company created an amount of internationally focused content that large. The company is adapting in order to globalize and suit the needs of their consumers across seas.
This leads us to question: what does that mean for their competitors? Competitors are being pressured to think globally. Disney set forth to buy Fox, which buys them into the Indian market with Sky India. Comcast’s play for Sky allows them to enter into the European market. But how can they keep up with such a dominant global competitor? Is buying foreign companies enough to compete with Netflix’s globally recognized brand? Netflix’s presence is continuing to grow and shows no indication of slowing down.
As Netflix develops into a strong global brand we can see what the company is doing right in terms of globalization.
1: Economically Efficient
Netflix is economically efficient to the consumer globally, as consumers pay a subscription fee that is significantly smaller than most media services. In the United States it is currently $7.99 for the cheapest streaming option available. Comcast’s television services currently begin at $49.99.
2: Subtitles and Language Barrier
The company makes subtitles available for their viewers who desire to stream a show or movie that is not made in their first language. Netflix is caters to the needs of the consumer by allowing them to consume a wide variety of content in a language that they can understand.
3: The Development of Global Content
As Netflix expands, they are hiring global directors, writers and actors to create new, original content. By utilizing foreign talent, the brand will connect closely to the global consumer by creating material that is relatable in various countries.
Netflix is dominating as a global brand. The company clearly has a strategic competitive advantage over local media providers who are being forced to look internationally for customers. This will be a great company to watch move forward and learn from as they advance in the international market.