Post-Sale Service Arrangements Netflix Does To Keep Satisfaction

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A description of the post-sale service arrangements that Netflix does to keep satisfaction
Introduction
Although the online media service is one of the latest industry sections, several scholars raise issues concerning the competitive and economic benefits of the internet. For instance, computerized data and delivery systems provided by the internet offer great competitive advantage over other types of media since marginal costs are being reduced to insignificant levels and the issue of bundling can indeed result in astounding “economies for aggregate.” Having passed through a lot of challenges in the recent past, Netflix has indeed turned out to be the leading media streaming organization globally. It has in fact gained entry in the unique program production, turning out to be the pioneer web TV network, winning the “Primetime Emmy Award,” and attaining greater than fifty million subscribers worldwide (Hallinan & Striphas, 2016).
Post-Sale Service Arrangements
Instead of utilizing its traditional making and bundling of its streaming services, Netflix is currently providing a marketing free la carte which is accessible on the mobile devices connected to the internet. The organization targets a completely unique market segment than what its competitors are focused on. One of the post-sale strategies are product differentiation approach whose main purpose was to enable customers have a more personal experience as compared to what the competitors like Pay TV were providing to the market. This strategy gave its customers the ability to cherry pick the contents being offered and have the opportunity to watch it any place, any time as they so wished. Moreover, the strategy also eliminated the convention of “one episode per week” production, by enabling the availability of the most loved television series throughout the season to a more tremendous and vibrant binge watching (Business Insider, 2014). Another strategy utilized is the use of its personalization elements. In order to offer the greatest customer experience, the organization has created Cinematch, which is an in-house system mandated with conducting recommendations for the organization. This feature utilizes the history of customer behavior to recommend new content for them. This strategy has beyond any doubt proved to offer a great competitive advantage (Stenovic, 2015).
In the beginning, the company started by providing free but restricted “add-on” to the consumers to gain a competitive advantage. In entering the market, it did not break into the competitor’s market to “steal” the customers but rather started by offering very attractive prices to its customers and encouraging repeat clients to buy their products. For instance, the customers subscribing to a “three-DVD-at-a-time” services at $16.99 every month could have in fact streamed for close to 17 hours per month (Perryman, 2014). This restriction was, however excluded for all apart from the cheapest plan that was there in 2008 (Perryman, 2014). That was a protective approach against the threat of the new entrants. Moments after, there was a tremendous growth of the market making streaming to stand alone in the market, but still Netflix priced its content at relatively lower prices compared to its competitors like the Pay TV. Despite the benefits of the low prices offered, Netflix still provided their services, especially for new customers with a free trial of one month while not subjecting customers into long term agreements. Most consumers will always rush to business entities that offer quality products at lower prices just as Netflix does to gain co...