Netflix enjoys a strong position in the market with a large subscription base.

h. All rivals are actively and busily launching fresh promotional initiatives.

i. Rivalry among subscription-based providers of streamed video content is a strong to fierce competitive force that is likely to intensify in the years ahead.

j. Rivalry increases when one or more rivals are dissatisfied with their market position and launch moves to bolster their standing at the expense of rivals.

k. Rivalry increases as the product offerings of rivals become more standardized.

Rivalry among subscription-based providers of streamed video content is a moderate competitive force that is likely to intensify in the years ahead.

b. What factors are acting to intensify/weaken the threat of new entrants into the streaming movie-rental marketplace?

a. As of 2012, the windows for entering the brick-and-mortar segment of the movie DVD rental business and the mail-delivery subscription segment are pretty much closed.

b. The entry barriers into online subscription segment of the movie rental business are high and it would be extremely difficult for any new business to compete with Netflix, Amazon, Hulu, or Apple.

c. There is minimal cost in developing a website with convenient video search, video recommendation, and video selection software capabilities, plus the capability to stream to many different types of devices.

d. The biggest entry threat into the streaming marketplace in 2018 and beyond are new or existing enterprises that enter geographical areas where they have heretofore not had a market presence.

f. The entry threat into the streamed entertainment content industry should be viewed as moderate to strong, but with time running out to enter.

a. There are no acceptable substitutes for the experience of watching streaming movies at home.

b. Buyer costs to switch to substitutes are relatively low.

c. Many consumers are familiar with and comfortable with using substitutes (going to movie theaters and watching live TV); this is especially true for occasional or less frequent movie-watchers.

d. Acceptable substitutes are readily available and competitively priced (in some cases).

e. Competition from substitutes is a moderate to strong competitive force, depending on the extent to which consumers prefer to watch content on-demand versus watching movies at movie theaters or buying movie DVDs for their own personal library.

Movie studios and TV networks and the owners of live sports events have great bargaining power and leverage over Netflix, Amazon Prime, and other streaming providers because of their power to heavily influence the price and other terms and conditions under which their movies, TV episodes, and live events will be released or licensed for streaming.

b. The licensing fees that Netflix has recently had to pay have escalated sharply in recent years giving Netflix very little power to negotiate on these fees.

c. The costs to produce a growing number and variety of in-house-produced original content has declined as companies like Netflix and Amazon take advantage of partnerships to produce and rely less on movie studios and TV networks.

d. All streaming/VOD providers will undoubtedly have to compete on the basis of having a large library of titles available for streaming.

e. The bargaining power and leverage of suppliers is a moderate to very strong competitive force, depending on the type of supplier.