Netflix Inc. is the world’s leading streaming entertainment service with over 167 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Netflix was founded in 1997 by American entrepreneurs Reed Hastings and Marc Randolph. Its corporate headquarters are in Los Gatos, California. Members can stream as much as they want, anytime, anywhere, on any internet-connected screen. Members can access the extensive range of the movies for free but there have been many arising competitors. The Basic Plan of Netflix is $8.99 per month and comes with very few features. Subscribers can only stream on one device at a time, and it’s restricted to standard definition. Its standard Plan is usually at $12.99 a month, this increases viewing to high definition (HD) on two different screens. The Premium Plan for Netflix is the highest one at $15.99 per month, allowing subscribers to stream on four different screens simultaneously in HD.
Different competitors threaten the market share of Netflix, including Amazon, Hulu, the upcoming streaming service from Walt Disney, as well as some of the cable channels’ subscription services. Amazon is the biggest competitive threat to Netflix is probably Amazon (AMZN). By 2019, Amazon Prime Video had about 97 million subscribers which are still far from Netflix’s subscribership. Another rising competitor for Netflix with roughly 79 million paid subscribers is Hulu. For Hulu streaming, consumers pay $5.99 each month for the first year for the basic service. This package comes with ads. Subscribers aren’t concerned about commercials that can opt to go for its more expensive package at $11.99 per month.
Lastly, another rising competitor to Netflix is Disney+ which is slated to be an on-demand, commercial-free service which hosts the entire library of Disney movies along with original Disney TV series. These are the main competitors threatening Netflix.