Introduction
The business model is a key aspect that allows the company to develop and increase its profits. Many organizations in the course of their existence change from one way of monetization to another in order to be more competitive and increase income. One example of such a corporations is Netflix, which, over a 20-year period of existence, has significantly changed its approach to earning. Initially, Netflix was an online service that rented discs (Mier & Kohli, 2021). They mailed them to customers and that was all their proceeds.
However, with changes in global technology and the development of the Internet, the company has expanded its business model. After renting discs, they completely changed the structure of the company and began to offer an online streaming service. As a result, management decided to separate the customer disc rental business from the streaming industry (Mier & Kohli, 2021). Subsequently, the company has expanded its offerings to the international market and has provided quality translations for videos. To date, Netflix translates series and films into more than 20 languages, making its business model extremely competitive (Mier & Kohli, 2021). This attracts matches from different countries, as they have the opportunity to watch films in their native language. In addition, the business model is distinguished not only by the provision of a streaming service but also by the original content of Netflix. Every year, the company releases a large number of series that occupy high places in various ratings. At the same time, they buy up successful projects and shoot high-quality sequels for them.
Thus, Netflix is an example of how the application of a new successful model allows the company to develop into a global giant. Thus, the organization has a large income and many customers around the world.
Reference
Mier, J., & Kohli, A. K. (2021). Netflix: reinvention across multiple time periods, reflections and directions for future research. AMS Review, 11(1), 194-205. Web.