Netflix: Market Penetration & Net Neutrality Challenges - Essay Sample

Introduction

At Netflix, our primary strategy is market penetration by expanding international market reach and business operations. At the moment, we provide our services at prices lower than our competitors and enhanced efficiency.

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With the current trending discussions on Net Neutrality, internet service providers are trying to coerce Netflix users into using their video streaming services, in preference to Netflix, by either slowing down Netflix's streaming speed or blocking it completely while offering faster frequency bandwidth to Companies willing to cough more money. Therefore, without Net Neutrality, it possible that AT& T and Warner will merge, making Netflix load slower for its subscribers in an attempt to get Netflix customers to subscribe to HBO. Retreating net neutrality will give rise to a situation where Internet service providers restricting selected content from Netflix totally or requesting Netflix to pay more money for faster speeds. As a result, consumers will have to pay an extra fee to internet service providers to get Netflix steams at speed and quality they are accustomed to. This means all Netflix subscribers worldwide will shift to other Companies like HBO.

The death of net neutrality will have a great effect on competition and innovation. For example, internet service providers owning video services may decide to slow down consumer's connection when they attempt to access services of a rival service provider such as Netflix. Such a decision would bring down Netflix user experience leading to the loss of customers. The death net neutrality may paralyze startup business too. Also, internet service providers could throttle freedom of speech; monitor what consumers share only by using their supremacy to suppress demonstrators.

Independent Recommendations

Recommendation 1: Putting in place net neutrality regulations that prohibit internet service providers from throttling internet traffic, discriminate in their treatment of interment traffic, block websites, or censure online content. Slowing down connections for consumers trying to log on to particular apps and sites should be prohibited. Additionally, there should be a prohibition of charging for higher-quality service or particular content. Another easiest and fastest way to settle the debate on net neutrality should be a reclassification of broadband internet as a common carrier by the Federal communications commission. This would be consistent with the proposed objectives as regards regulations on net neutrality. Also, it will be valuable to the growth of Netflix, as a result of positioning our main concern. All the same, despite the ability of the Federal communications commission to act individually and the legitimate reliability of reclassification, they will not do so concerning their history. Netflix should, therefore, concentrate its determinations on the establishment of an adjudication process by the Federal communications commission to help young companies to report grievances against internet service providers. In as much as the adjudication will benefit startups directly, it will also promote the growth of Netflix in the long run.

Recommendation 2: From our viewpoint, it is clear that the favorite outcome remains the safeguarding of net neutrality as it has been the habit in the previous years. Nevertheless, based on recent occurrences, it is sensible to introduce a fresh tactic. For long term benefit, it will be best to petition for market segmentation of the internet by Federal communications commission. Here, there will be a creating of a distinct set of regulations controlling how internet service providers interrelate with large content providers and young companies.

References

Aatif., S. (2018). Net neutrality repeal: What is it and why will it make the internet much worse? The Independent.

Chmielewski, D. C., & Chmielewski, D. C. (2018, January 5). Netflix To Join the Internet Association's Efforts To Preserve Net Neutrality. Deadline. https://deadline.com/2018/01/netflix-joins-effort-to-preserve-net-neutrality-1202236469/

Feldman, B. (2017, November 21). Without Net Neutrality, What Happens to My Netflix? Intelligencer. https://nymag.com/intelligencer/2017/11/what-happens-to-netflix-when-net-neutrality-is-gone.html

Libin, L. (2014). The Grove Dictionary of Musical Instruments. Oxford University Press.

Millstein, S. (n.d.). What You Should Know About Net Neutrality If Your Nights Consist Of Netflix & Chill. Bustle.