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Users were frustrated by the shortage of customer support and had to wait longer to retake their accounts compromised from hackers.ħ.

To make matters worse, Netflix reduced support hours. Support Shortages – The number of Netflix users and hacked accounts increased in the first six months in 2020 because people were stuck at home due to Pandemic. This a major weakness because the North American Market is nearing saturation.Ħ. In the fiscal year 2019, Netflix reported $10.05 Billion revenue from North America, which represents about 50% of its total revenue ($20.15 Billion).

Over-dependence on North America Market – Even though Netflix operates globally, it relies heavily on the North American market. The lack of different options has contributed to stagnation in the number of new subscriptions.ĥ. Unfortunately, Netflix’s pricing model is rigid with only three tiers, Basic, Standard, and Premium. Rigid Pricing – Customers demand customized pricing with more options. The lack of green energy utilization has a negative impact on the brand image of Netflix.Ĥ. The four tech giants have committed to using 100% renewable energy for their businesses. Contrary to this, tech companies like Amazon, Google, Apple, and Facebook have already started using renewable energy to help sustain the environment. Lack of Green Initiatives – Netflix has still not utilized renewable energy and hasn’t created a business model to promote environmental sustainability. The increase in debt every year is a major weakness.ģ. As of April 2020, Netflix reported $14.17 billion in debt and plans to raise $1 billion more through a debt offering. Netflix keeps adding to its long-term debt to fund new content. Increasing Debt – Netflix is serving its diversified content in many countries around the world which requires huge amounts of money. The rights taken from other studios expire after few years, and that content starts appearing on other sites.Ģ. Limited Copyrights – Netflix does not own most of its content, and this affects the company negatively. Netflix’s Weaknesses – Internal Strategic Factorsġ. In 2020, Netflix has received 160 nominations at the Emmys where as traditional TV networks have received the following nominations: In addition, Netflix has been beating traditional television networks (HBO, NBC) in nominations. For a higher quality Ultra HD (4K+HDR) streaming, subscribers can even get premium plans at $15.99 per month.Ĩ. Award-Winning Shows – It is not a surprise that the popularity of Netflix’s original shows has been growing.

It is less expensive than cable movies or going to the cinema and also offers a wider selection. Subscribers can watch unlimited movies, either on DVD or streaming for an affordable price of $8.99 a month. The plans that Netflix has designed are affordable and offer great value. Affordable Pricing – The pricing strategy of Netflix has given it leverage over its competitors.

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As a result, Netflix introduced a download now (offline) feature for customers to watch their favorite shows on the go.ħ.

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Customer – Centric Service – For a long time, customers were looking for an offline option to watch Netflix content, in case of travel (plane, subway) or bad internet connection. Due to this, their business grew immensely over the years.Ħ. Adaptability – Netflix adapted to various technologies instantly by providing streaming on all internet-connected devices like personal computers, iPads, mobile devices, and televisions. Some of its shows like Tiger King, Stranger things, Money Heist, Narcos, Mindhunter, and Orange Is the New Black became so popular that its subscriber count kept increasing over the quarters.ĥ. Originality – Another one of its strength is that Netflix has been producing original content over the years with the highest quality.