Running head: ARTICLE REVIEW 1

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Article review

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Article Summary

Since Netflix’s major programming suppliers are planning to launch their

own streaming services, Netflix might be on the verge of losing some of its

valuable content preferably “The Office” and “Friends”. Although Netflix has

polished its brand with its hit originals such as “Stranger Things” and “The

Crown” but the Executive is of the view that the upcoming growth will be

challenging and there will be pressure to create more original content.

Netflix paid a heavy price for Friends rerun this year and has been preparing

to utilize its resources more on the originals in case the suppliers restrict the

licensing of its popular shows.

Media executives have been threatening to remove programming from

Netflix but due to good money the action has been going slow. Media

companies will also face a risk that if they cut down their revenues through

Netflix and their own streaming dose not gain enough attraction and

audience, they will hurt both themselves and the stakeholders, moreover

Disney has immediately pulled out its programming from Netflix and is

willing to offer it shows for half the price Netflix people have to pay for. Also,

when deciding whether to remove content from Netflix, media companies

will have to balance the interests of show creators, promising that they will

not lose any financial grounds (Sharma, 2019).

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Industry Competition And The External Environment

In this era of growth there is always some competition going on between the

rivals and the most prominent rivalry in this case is Amazon.com. Also Hulu

and WarnerMedia are emerging as new immigrants in streaming arena.

Moreover, besides industrial competition there are always some external

factors such as political, social, cultural and economic factors that play a

vital role in making things work the way they should.

To be more precise, In US population, people are inclining more

towards on-demand online streaming services like Netflix. Younger viewers

prefer one-touch instant play more these days. Netflix has made a lot of

improvements to make its streaming efficient, which has made Netflix gain a

lot more global attention in the recent years (Gupta, 2013).

Views and Opinions

In my opinion, in such a competitive environment Netflix has to strive

hard to keep up with the growing demands and changing conditions as to

stay in good books, both maintaining the revenues and the required

audience.
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References

Gupta, A. (2013). Environment & PEST analysis: an approach to the external

business environment. International Journal of Modern Social Sciences,

2(1), 34-43.

Sharma, J. (2019). Netflix Fights to Keep Its Most Watched Shows: ‘Friends’

and ‘The Office’. [online] WSJ. Available at:

https://www.wsj.com/articles/netflix-battles-rivals-for-its-most-watched-

shows-friends-and-the-office-11556120136 [Accessed 12 Sep. 2019].