4.Will Netflix remain the dominant provider of online video streaming? ( 15 marks ) 4.1. Netflix stumbles: The demise of Qwikster 4.2. Netflix rebuilds: The rise of original content 4.3. The future...

Netflix
Introduction
Video streaming also termed as ‘real time entertainment’ receiving huge volume traffic asking different web application and contenders to materialise the opportunity. Netflix is a growing household name in the video streaming segment having millions of new subscribers accessing services each month. The volume and proportion of streaming movies on computers, home and internet connected devices at Netflix reaches over 35% all peak internet traffic in US, creating a strong and aspiring figure (Newman, 2014). With the strong adaptability in the business model, Netflix continued to stay as a dominant player in video streaming through introducing subscription service, launching its own competing by-mail subscription DVD service, digital streaming media and downloadable music and video file services.
Will Netflix remain the dominant provider of online video streaming
With the introduction of subscription service in 1999 where customers are allowed to keep DVDs for long time period without any late fees, Netflix earned good amount brand name. In subsequent years, Netflix launched Blockbuster Video, by-mail subscription DVD service, downloadable music and video file services, and, secured more and more people watching media online. The streaming video space of Netflix is proven for its adaptable and technological landscape adding new competitive dynamics to the firm (Wingfield & Stelter, 2011).
Even though, Netflix is renowned as a dominant player in the video streaming industry, but there are many players entered in the industry striving for capturing dominance and leadership thereby proving a matter of concern for Netflix. The demise of Qwikster and demand of developing and displaying original content for sustaining millions of customer subscriptions ask Netflix to search and secure new titles and developing original content in improved and innovative manner. Putting in simple words, Netflix ability to sustain and grow its leadership position depends on its ability to produce and display original content, and, offering new version services for tickling its customer base and market position.
Netflix Stumbles: The demise of Qwikster
In 2010, Netflix announced decision of rebranding its by-mail DVD service via a subsidiary called Qwikster, positioned as DVD portion of Netflix, allowing offering bundled service-DVD and streaming service to customer for increasing value proposition. The individual purchase of DVD and streaming services do not justify expense, through providing bundled service, DVD and streaming service supplement each other and provide high value proposition to customers. For example, DVD allows customers to view new releases timely, and, streaming services allows viewing older catalogue of movies as and when desired. The bundled service also priced at cheaper rate for providing quicker access to new releases without any wait (Newman, 2014).
However, Qwikster did not prove successful and Netflix announced its demise in 2011 with assertion that no separate service or device for streaming movies will stay in place. The Qwikster is proving a costly affair for company, and, idea of splitting services in DVD and streaming movies is not liked or preferred by customers. Initially, it proved attractive to customers, but, later on, customers were finding it quite complicated and confusing to place and use causing around 1 million subscribers to leave and switch competitors’ services. The accumulation of DVD and...