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How to construct a Strategic Group Map? would earn in 2019. Netflix executives expected that close to 75 percent of the gains in subscriber growth

How to construct a Strategic Group Map?

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would earn in 2019. Netflix executives expected that close to 75 percent of the gains in subscriber growth in 2018 and over 80 percent of the gains in 2019 and beyond would come in the international arena. New Content Acquisition Over the years, Netflix had spent considerable time and energy establishing strong ties with various entertainment video providers to both expand its content library and gain access to new releases as soon as possible after they were released for first-run showing in movie theaters. Prior to the recent push by Amazon Prime and Hulu to attract streaming subscribers, Netflix had successfully negotiated exclusive rights to show titles produced by a few studios. In August 2011, Netflix introduced a new "Just for Kids" section on its website that contained a large selection of kid-friendly movies and TV shows. By March 2012, over one billion hours of Just for Kids programming had been streamed to Netflix members. New content was acquired from movie studios and distributors through direct purchases, revenue-sharing agreements, and licensing agreements to stream content. Netflix acquired many of its new-release movie DVDs from studios for a low upfront fee in exchange for a commitment for a defined period of time either to share a percentage of subscription revenues or to pay a fee based on content utilization. After the revenue-sharing period expired for a title, Netflix generally had the option of returning the title to the studio, purchasing the title, or destroying its copies of the title. On occasion, Netflix also purchased DVDs for a fixed fee per disc from various studios, distributors, and other suppliers.

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