KEY SUCCESS FACTORSTechnologyTechnology is the most important factor to thrive in the market. Technological advancements will help reduce Netflix's operating costs. However, they must have excellent content quality. Innovation stands out in their technology. As long as innovative strategies are implemented, Netflix will be equipped to handle fierce competition. Netflix's success will depend on product differentiation and content quality, driven by its innovation, high quality and performance delivery. The industry will move towards mass distribution to customers and profits can be achieved with more subscriptions. (Paramesh 2013). Distribution To succeed in an online market, Netflix must have an efficient distribution network that allows for rapid delivery of DVDs. The future of content distribution is through streaming. According to Reed Hastings, CEO of Netflix, “over the next few decades and around the world, Internet TV will replace linear TV. Apps will replace channels, remote controls will disappear and screens will proliferate. As Internet TV grows from millions to billions, Netflix, HBO and ESPN will lead the way.” (Hastings 2013) As the Internet becomes faster, more available, and more reliable, Internet TV will grow exponentially. According to Hastings, this goal will be achieved if every TV is equipped with Wi-Fi and apps. Smart TV adapters (Roku, Apple TV, etc.) will become more powerful and less expensive. It will increase viewing on tablets and smartphones. Tablets and smartphones will be used as interfaces for Internet TV. Ultra high definition (4K) video streaming will happen before linear TV supports 4K video. The most important advancement will be in Internet video advertising. It will be personalized and...... half of the card......s Speeds, SlashesRates." Digital Trends. Digital Trends, February 1, 2013. Retrieved from the Web. April 7, 2014. http:// www.digitaltrends. com/web/pressured-by-google-fiber-time-warner-ups-speeds-slashes-rates/#!C023gHardy, Robert “Is Netflix Expanding on Original Movies? Here's how it could affect independent filmmakers." No Film School Netflix expands into original films. Here's how it could affect independent filmmakers' comments. Nofilmschool, October 30, 2013. Retrieved from the Web. June 13, 2014. http://nofilmschool.com/ 2013 /10/netflix-expanding-original-movies-independent-filmmakers/Shields, Mike "The first Netflix and Amazon. Now Yahoo Gets Into the TV Programming Game." CMO Today RSS. The Wall Street Journal, April 5, 2014. Retrieved from the Web. April 6, 2014 http://blogs.wsj.com/cmo/2014/04/05/yahoos - splash-tv-plans/
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