Description: Netflix was the first media company to capture a new consumer generation, “cord-nevers” and “cord-cutters”, via a robust online streaming platform, where it connects content providers and content consumers, building value for the whole ecosystem.
This post discusses Netflix’s reliance on network effects, and risks and benefits of their current model to attract users and content owners to their platform.
Through soliciting customer feedback on its pilots, Amazon Studios determines which shows to greenlight before producing a full series.
Netflix exhibits both direct and indirect network effects through its recommendation engine, content acquisition process, and enabling devices.
