PARAPHRASE THE HIGHLIGHTED & ANSWER QUESTION “CHAPTER 7’’ AT THE END.
Briefly describe any strategic alliances of Netflix, if applicable. Would you consider them to be “traditional” alliances, or are they “modern forms” of alliances? Why?
Amazon & Netflix
By entering into a strategic alliance with Amazon, Netflix was able to migrate its entire streaming infrastructure to Amazon cloud services at the fraction of the cost of creating its own. The benefit of this alliance is that it supported Netflix’s strategic global expansion, in order to amass more subscribers in the midst of its dwindling U.S. subscriber base. It also created the ability for Netflix to quickly deploy thousands of servers and terabytes of storage within minutes when expanding into a new region or country (Butler, 2013). According to Netflix’s Big Data Platform Director, Eva Tse, Amazon web services provided Netflix with scalability, elasticity and velocity for Netflix to run hundreds of thousands of instances across several regions; providing hundreds of micro services, servicing over a billion of requests and providing over 150 million hours of contents per day on AWS infrastructures.
Also, Tech titans Amazon, Netflix, Cisco, Microsoft, Mozilla, Google, and Intel have banded together as the Alliance for Open Media to come up with a new standard for online video.
The technology is based on a bunch of patents held by companies including Sony and Panasonic, with MPEG LA acting as the company that collects the fees on behalf of the patent holders. MPEG LA is the company that collects the licensing fees for the patents to the AVC/H.264 codec technology, which is the nerdy-sounding but crucial bit of code that takes the original video and streams it to you in a way that your browser, phone, or TV can understand.
When you buy a subscription to streaming video services like Netflix or Amazon Prime Instant Video, or an episode of TV or a movie from the Google Play store, a portion of your purchase goes into the pockets of an organization called MPEG LA.
Even Cisco has to cough up a licensing fee for its enterprise videoconferencing services.
The MPEG LA group doesn’t collect its patent royalties for video that’s free to the end-user, which is part of why you don’t have to pay to upload content to YouTube or other online video sites.
CABLE PROVIDERS ALLIANCE
Netflix has claimed a major symbolic victory over the country’s biggest cable providers, with research showing that the streaming service now has more U.S. streaming subscribers (50.85 million) than the number of customers for the country’s largest cable companies (48.61 million).
A growing number of U.S. cable operators are forming alliances with NetflixInc, a shift that is helping the streaming pioneer add customers as its largest single market matures.
No. 3 distributor Charter Communications (CHTR, -0.52%) is expected to make Netflix available through its set-top boxes, joining more than a dozen top U.S. pay television operators adopting a model first rolled out in Europe. Some U.S. providers could start selling the streaming service as part of their Internet and video packages.
Altice, a relatively new entrant to the U.S., is trying that approach in its home market of France, and the company aims to extend the deal to the U.S., two sources with knowledge of the matter said during the past three weeks. They requested anonymity because the discussions are private.
Orange and Netflix have renewed the agreement signed in 2014 for the distribution of Netflix for Orange TV customers in France, and have expanded their partnership to all countries in which the Orange Group is present.
This strategic partnership will enable the Group’s subsidiaries in Europe, Africa and the Middle East to distribute Netflix in the future, bringing their customers the rich, globally popular, exclusive content of this service to all their screens: licensed and original TV series, movies, stand up comedies, documentaries and children’s programmes. Netflix is the home of award-winning shows like Stranger Things , Orange is the New Black, House of Cards and The Crown; and global phenomena such as 13 Reasons Why and Narcos. Orange has been a Netflix distributor in France since 2014 and in Spain in recent months.
Netflix will be offered to Orange Poland customers in the coming months as part of its TV offers. Other launches will follow in 2018.
GOOGLE & NETFLIX
Netflix and Google have a strategic alliance where both companies came together to help fight the recent trend of ISP’s from charging higher fees for the increased bandwidth used by video streaming. Google has started rolling out fiber in different cities and allowing Netflix free access without charging additional fees to maintain bandwidth. Netflix has had to pay ISP’s more money for their “fast lane” access raising internal costs some of which have been passed on to consumers. Net neutrality is what both Google and Netflix want since this will allow all content providers the same access to available bandwidth without higher fees. Google is doing this because it believes in net neutrality and because it could be targeted next for its large YouTube streaming services.
The shift back toward print, the collective shift to digital-only happened just as new and exciting technology was taking shape. Companies were able to buy banner ads for a few dollars and get hundreds of new leads. Clicks on Google could be had for pennies per click, and it appeared that this new digital-only strategy was going to drastically decrease the costs per new lead and ultimately cut customer acquisition costs (CAC).
With so many leads and new customers coming in the front door for such a small amount of money per person, there was a ton of sloppy marketing and follow-up happening. This was totally understandable as business was booming. But, as the media and platforms matured, the competition for those eyeballs increased, the complexity of using the media increased, and the overall effectiveness of the media decreased. This led to increased costs per lead and increased CAC.
Classify the key management personnel in the organization. For example; who is the global business manager, worldwide functional manager, geographic subsidiary manager, top level corporate manager) include name;position; explain briefly what is the position about for each one. It has to be more than 4 key management representatives.