An Assessment about the Business and Profitability Analysis for Netflix
Haoyu Meng, Jiayi Zhang, Yifang Zhang, Wanbing Zhou · Advances in economics, business and management research/Advances in Economics, Business and Management Research · 2022
Under the COVID and the telecommunication, the streaming industry keeps benefiting during the development.Even after the situation getting better, the industry can still develop a lot thanks to this kind of entertainment has become part of people's way of live.Netflix is a large streaming company, got rich by DVD at first, successfully transformed to streaming industry in 2007 and knowing for its high-quality original programs after 2013.However, the future for the industry benchmark like Netflix is still challenging.The competition makes the market getting more and more saturated, with almost all of the film and television media companies jump into the streaming industry.The operation process includes not only the traditional way but also launching movies that were originally planned to hit theaters.Some competitors even try to focus on the middle-aged audiences.A fierce, segmented market environment like that keeps driving us to think at what level the profitability condition of big name like Netflix is playing and where it can reach in the future.The existing studies mainly provide the overall analysis for Netflix, but this research will focus on the profitability analysis and try to give constructive suggestions to more companies.The purpose of this research is to centralize the analysis on Netflix, trying to discover and predict the profitability condition of it from a business and financial point of view.The evidence will take both the qualitative and the quantitative sides into consideration.This paper will be divided into five parts.Following the introduction, the business analysis will try to answer the questions like what strategic actions has been taken to improve the profitability condition.Then the financial analysis and discussion part will include crucial financial indicators to evaluate the profitability condition and have some reasonable recommendations about Netflix.Finally, the conclusion will summarize the assessment of Netflix.According to the previous researches, the transformation in the television industry (Evens & Donders, 2018; Hesmondhalgh, 2019), as well as the development of streaming industry based on the cross cover of media and technology industry with the comparation of the companies thereof (Luo, 2020; Cody, 2021) have been taken into vast research.Besides, there have been plenty of reports presenting the perspectives Advances in Economics, Business and Management Research, volume 219