넷플릭스의 경쟁 전략: 네트워크 효과, 콘텐츠 재판매, 오리지널 콘텐츠의 전략적 조합

Netflix is ​​the world's No. 1 digital over-the-top (OTT) service provider that revolutionized the media industry. Netflix provides high-quality video contents such as movies, dramas, and documentaries to about 200 million monthly subscribers worldwide through a digital-based interface. From the beginning of the OTT service business, Netflix created a direct network effect by providing a digital content curation service that increases in precision as the total number of subscribers increases based on internal big data analysis capabilities. In addition, Netflix was able to settle the OTT service in the market early by licensing a large amount of high-quality contents from external content producers and reselling it to subscribers. Netflix subsequently faced a fundamental crisis in business operations while facing excessive demand for royalty increases by external content producers, but strategically implemented backward integration to transform the business model into an OTT service provider and content producer. Based on the results of internal big data analysis, Netflix succeeded in commercial success by producing and exclusively distributing original contents customized for Netflix’s subscribers, and also succeeded in globalizing at the exponential speed by rapidly transferring original contents to overseas markets. However, Netflix's backward integration strategy poses a risk of "double-edged sword" effect to corporate performance, such as promoting forward integration of external content creators, so it is necessary to consider strategic alternatives such as implementing a platform business model based on two-sided markets from a long-term perspective. The Netflix case provides integrated implications for establishing and implementing a competitive strategy for digital service companies in this age of digital transformation.