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2 The Netflix Company This paper is to provide a microeconomic analysis of Netflix . I will be exploring the company's pricing , supply and

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2 The Netflix Company This paper is to provide a microeconomic analysis of Netflix . I will be exploring the company's pricing , supply and demand , demographics profits , price elasticity and cost of production . At the end , I will give a final recommendation of economic decisions for Netflix to remain the beloved household name that it is. History of Netflix Netflix is currently the world's largest streaming entertainment service . Servicing over 190 countries with more than 183 million paid memberships (Netflix Investors , 2020 ). Every year since their debut , they've managed to increase their profits and subscribers . There have been a few bumps in the road with price increases due to their elasticity but managed to recover and continue to gain subscribers every quarter again . In 1997 , this American based company , Netflix , was born . The original business model for Netflix was to provide subscribers the option to rent movies and television series , have them shipped to their homes , and return them whenever they wanted . This started as a pay per movie which quickly changed to a monthly subscription for the same services . There are a variety of different genres available and in different languages to accommodate the growing demand around the world for this service . Internet access is required at all times but certain movies and shows are also available for download to certain devices for viewing elsewhere without internet access. In 2007 , the company introduced streaming of movies and television shows directly to customer's computers (Mcfadden , 2019 ), which is where their business model remains today Over the next few years , they expanded their available streaming systems to include iPhone

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