Diversification is one reason you can expect a Netflix move to be coming to a theater near you with much more frequency. The primary business is to provide on-demand video streaming services. The on-demand video includes television series, movies, cartons and documentaries which is the core competence for the business. Most of these are made the United States, as well as other countries such as the England, France, Japan and India. Recently, Netflix has has diversified its business to include numerous subsidiaries which can be considered as related corporate diversification.
Netflix owns “three content production companies: The US-based Netflix Studios, the Germany-based Netflix Services Germany GmbH, and the Singapore-based Netflix Pte. Ltd.” (https://www.profolus.com/topics/the-business-strategy-of-netflix/) These are production companies that produce and create original programming such as television shows and movies which have been very successful.
The original content allow Netflix to retain subscribers and exposes them to their programming in new venues. Recently, Netflix has launched a few movies in theaters for the public to view. The movies that receive favorable reviews might even attract new customers who have never tried the service previously. The competition should expect for Netflix to continue diversifying to increase their competitive advantage.
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