Netflix is a streaming company that is known for its quality content. Netflix has multiple shows on its platform that have gained massive popularity. These shows are household names like Breaking Bad, Stranger Things and Squid Games. Netflix will continue to produce quality content that brings viewers to its platform and that’s what sets it apart from the rest of the streaming services. 

Share of Watched Hours 

Based on a study that was conducted by Neilson they found that Netflix was dominating the streaming market with around 30% of market share when looking at streaming minutes in March of 2022.  

Clearly Netflix dominates within the streaming space beating other Movie and TV show streaming platforms by around 15 percent. 

Main Competitive Advantage 

What makes Netflix stand out from the rest is its ability to create and host popular tv shows which no other streaming service has had the ability to do. Apple TV might have Ted Lasso, Disney the Mandalorian, & Prime the Boys. None of these streaming services can acquire or produce the level of content that Netflix has on its platform. This keeps subscribers coming back again and again to watch on Netflix. 

Spend Money to Make Money  

Netflix’s competitors have been spending a lot of money to grow their platform which Netflix hasn’t had to do keeping Netflix more profitable. Platforms have spent a lot of money trying to draw users to their site. Prime is spending around 1 billion dollars a year to have the rights to Thursday Night Football, Apple TV is spending money for the MLS Streaming rights. Companies are having to spend a lot of money to draw users to its platform.  

When comparing profitability between the streaming services, Net Profit Margin was used which is the amount of revenue left over after all expenses. The company with the highest net profit margin was YouTube which had the highest at 14.7%, this isn’t surprising because YouTube doesn’t spend any money on content. Netflix came second and blew other movie and TV streaming platforms out of the water.  

Price Raises 

Recently streaming companies including Netflix have been raising the cost of their subscription services. This move is not bad for Netflix at all and will immediately raise their net income. One interesting thought is what if Netflix held their prices where they were. This would’ve accelerated their subscriber growth and put the other platforms at a disadvantage because it would be harder to get customers with higher prices.