Case study analysis - Essay Example

The report also encompasses a SWOT analysis of Netflix along with recommendations for future development. The movie rental and streaming industry offers movies and streaming videos to customers at a monthly charge. Over the years, this industry has grown significantly, with customers spending increasing amounts on video and streaming services. According to Snider (2014) spending on digital video content increased by over 30% in 2013 in comparison with the previous year. Snider (2014) also been mentioned that, with the rise in popularity of streaming content, the DVD rental service is gradually declining.

Over the past year, it has dropped by 9% and is predicted to keep on falling in the coming years. The movie rental and streaming industry is characterized by the presence of several well established brands other than Netflix such as Hulu, Amazon prime, HBO Go, Vudu, Apple TV, among others (Donfro, 2014). These firms compete among each other to gain the maximum possible number of subscribers by offering higher value propositions and, among all the competitors; Netflix has managed to attract the highest market share.

One of the key drivers of the movie rental and streaming industry is the growing popularity of the online streaming services. The constant increase in the usage of high speed internet services has made it easier for customers to stream their favourite movie or TV series at a time of their own choosing. Moreover, another key driver for the growth of the industry is the increasingly hectic lifestyle of the people, which leaves hardly any time to catch a movie in theatres and watch a TV show at specific airing time (Marketline, 2014).

Thus, the video and movie streaming service has gained huge popularity as its services allow customers to watch movies and TV shows at their convenience. Moreover, technological advancement has also allowed