Conference Case Netflix: orange is the new green
The evolution of Netflix represents a perfect example of the theory of competitive disruption, posing a clear break with the conventional model of monetization of the audiovisual content industry, a displacement of the center of gravity of the value chain, which establishes the distribution as the authentic business key and, of course, a new experience for the consumer that forces the complete revision of concepts such as relationship with the customer, occasion of use, integration of technology and perceived value.
The dragging effect of the Netflix strategy has, on the other hand, a transversal impact in various adjacent industries, such as telecommunications, in which large players rush to redefine their strategy and role in the business value chain. The big operators, in their struggle to avoid indifferentiation, have entered fully into the content business, thus posing an interesting battle with traditional companies and blurring competitive roles. This conditions, of course, the new alliances and waves of global mergers and acquisitions that we are currently seeing and which, in all likelihood, will continue in the more immediate future.
The Netflix model, however, also poses new strategic challenges to be solved. By taking concepts such as mobility, immediacy in the availability of content and exclusivity of them to the limit, the company's intensive international growth must respond to the demands of a global audience that, nevertheless, coexists with local regulatory frameworks. New competitors fighting in a business in deep redefinition and with spectacular growth prospects, in short. Netflix will undoubtedly have a lot to say about it..
Lecture-colloquium by Pilar Llacer professor at the EAE Business School.