Select yes for resource weaknesses below that are accurate and choose no for those that are not.

Netflix is vulnerable to the bargaining power of movie studios and other content suppliers to extract higher license fees from Netflix in return for granting rights to Netflix to stream their content.

Netflixs service is not appealing to individuals/households who are content to watch regularly-scheduled network programming and whatever cable programs are available.

The financial strains of producing a greater number of original, in-house produced content has left Netflix financially drained.

Netflix is currently losing subscribers to Amazon due to Amazon prime membership.

A market opportunity for Netflix includes growing its subscriber base in recently-entered countries/geographic areas.

Attracting millions more subscribersonline movie rental is still in the growth stage of the industry life cycle (as evidenced by growth in the number of new subscribers that Netflix has been able to attract).

Form a partnership with smaller streaming providers such as Hulu or Redbox.

Continue expansion into foreign markets and becoming the recognized global leader in streaming entertainment content to individuals and households.

Form partnerships with movie studios in order to negotiate license fees.

External threats to Netflix include the entry of streaming competitors, especially those that have the name recognition, brand power, and resources to draw subscribers away from Netflix.

Additional threats to Netflix include government regulations who would prevent them from producing their own in-house content.

Growing bargaining power on the part of content providers of all types to extract higher fees from Netflix in return for granting Netflix the rights to stream their content.

Movie studios and DVD retailers lower the prices of movie DVDs, thus making it somewhat more attractive for some consumers to buy movie DVDs rather than rent them.

Consumers, for any of several reasons, become less interested in watching streamed movies or other content available from Netflix.

Netflix is acquired by Amazon.

Netflix is presently the strongest global streaming competitor.

Amazon is rated as Netflixs most formidable competitor currently because of its streaming offerings, its brand image/reputation as an online shopping site for consumers, and the attraction of being an Amazon Prime member.

HBO GO & Hulu are close competitors in competitive pricing and variety of subscriptions.

Netflix is financially weak compared to Amazon, Hulu, and HBO GO/NOW.

Netflix and Amazon are close competitors in terms of titles in content library and brand image.

Considering all four SWOT lists, which of the following accurately characterize the attractiveness of Netflixs overall situation?

Select the best response from the options provided.

Multiple Choice

• Netflixs overall situation is strong and that its long-term outlook is promising.

• Netflix situation is threatened by movie studios and other content suppliers who have high licensing adding to Netflixs financial burden.

• Netflix should address its weaknesses very closely as it continues to lose subscribers to Amazon.