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The Power of Digitalization: The Netflix Story

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• First Online: 18 May 2020
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• Manuel Au-Yong-Oliveira 20 , 21 ,
• Miguel Marinheiro 20 &
• João A. Costa Tavares 20  

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1161))

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• World Conference on Information Systems and Technologies

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The evolution of technology, and mainly the evolution of the Internet, has improved the way business is done. Nowadays, most services are offered through a website or through an app, as it is much more convenient and suitable for the customer. This business transformation made it possible to get a faster and cheaper service, and companies had to adapt to the change, in order to fulfill customers’ requirements. In this context, this paper relates to this digital transformation, focusing on a case study about Netflix, a former DVD rental company and currently an online streaming leader. We aimed to understand Netflix’s behavior alongside this digital wave. Thus, we performed a survey, which had 74 answers, mainly from Portugal, but also from Spain, Belgium, Italy, Turkey, Georgia and Malaysia. Of the people who answered the survey, 90.1% were stream consumers, but only 59.1% had premium TV channels. From those 90.1%, 58.3% also said that they watched streams between two and four times per week, but the majority of premium TV channel subscribers (63.8%) replied that they watch TV less than twice in a week. We see a trend in which the traditional TV industry is in decline and streaming as a service has increased in popularity. Consumer habits are changing, and people are getting used to the digitalization era. Netflix is also confirmed in our survey as the market leader of the entertainment distribution business, as stated in the literature, and the biggest strength of this platform is its content.

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Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193, Aveiro, Portugal

Manuel Au-Yong-Oliveira, Miguel Marinheiro & João A. Costa Tavares

GOVCOPP, Aveiro, Portugal

Manuel Au-Yong-Oliveira

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Correspondence to Manuel Au-Yong-Oliveira .

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Álvaro Rocha

College of Engineering, The Ohio State University, Columbus, OH, USA

Hojjat Adeli

FEUP, Universidade do Porto, Porto, Portugal

Luís Paulo Reis

DIMES, Università della Calabria, Arcavacata, Italy

Sandra Costanzo

Faculty of Electrical Engineering, University of Montenegro, Podgorica, Montenegro

Irena Orovic

Universidade Portucalense, Porto, Portugal

Fernando Moreira

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Au-Yong-Oliveira, M., Marinheiro, M., Costa Tavares, J.A. (2020). The Power of Digitalization: The Netflix Story. In: Rocha, Á., Adeli, H., Reis, L., Costanzo, S., Orovic, I., Moreira, F. (eds) Trends and Innovations in Information Systems and Technologies. WorldCIST 2020. Advances in Intelligent Systems and Computing, vol 1161. Springer, Cham. https://doi.org/10.1007/978-3-030-45697-9_57

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DOI : https://doi.org/10.1007/978-3-030-45697-9_57

Published : 18 May 2020

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