Strategic Planning and Team Building

Running Head: MOVIEFLIX 0

MovieFlix

(Name)

(University)

What is the problem?

MovieFlix is facing increased competition in the marketplace. Lobato, Ramon (2012) stated that DVD-by-mail and on-demand internet streaming media industry where MovieFlix is operating is attracting more players. The major players are NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com. Other video streaming players Seeso.com, Pluto.com, Spuul.com, Crackle.com and Shudder.com. The rivals offer video streaming services on computers, smart televisions, ROKU, mobiles devices and media players like Apple TV. Acorn.tv offers services that are charged $ 5 as a monthly fee. According to Willcox (2017), Mubi.com charges a monthly fee of $ 6 to its customers. A fee of $ 7 is charged on Crunchyroll.com on a monthly basis. Fandor is accessed by paying $10 as the monthly subscription fee. There is a variety of 40,000 movie or series titles listed on the Tubitv.com. The other small players are making it hard MovieFlix to operate by for some offer free content without a subscription.

Why is it a problem for businesses?

The more competitors in the video streaming business, the lesser sales for MovieFlix (Lobato, 2012). The competitors share the existing numbers of the video streaming business. The new rivals acquire a share from the MovieFlix. The reducing market share means lesser customers will stream and purchase DVD from MovieFlix. The firm will experience lesser sales volume for there are alternatives in the market. Given that their rivals and MovieFlix are offering same content the customers are considerate of the pricing. The rivals offer lesser pricing than MovieFlix. The customers of MovieFlix are able to move to the rivals video streamline services for they are affordable. Willcox (2017) stated that more traffic is going to NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com than MovieFlix. Due to low pricing, the NetFlix has taken a third of the streaming video services meaning a third of the revenues that used to go MovieFlix are no longer going there.

Why does this problem exist or what causes it?

Over time the sales volume of the MovieFlix has been decreasing. The business has been declining over time. The difference in pricing of the subscription fees makes it difficult for MovieFlix to rival others competitively (Lobato, 2012). MovieFlix charges $ 9.95 to subscribers who will access several thousand movies and series. According to Willcox (2017), the competitor's charges to way little funds than MovieFlix, Acorn.tv and Mubi.com and Crunchyroll.com charges between $ 5 and $ 7. Marketing of the MovieFlix services has become difficult sale to the customers. Given that the streaming videos presented by the operators are the same the clients look at the next differentiating thing. The next differentiating aspect is pricing. There is a $ 2 or 4 dollar difference in monthly subscription fee between the monthly fee charged by MovieFlix and its rivals.

What are some of the consequences if the problem goes unsolved?

If MovieFlix does not address the high subscription fees, it will be driven out of business by its rivals. In the video streaming business, all contents are almost similar. Lobato (2012) noted that The content establishes a similar playing ground meaning customers will consider other secondary aspects that are used for product differentiation. What you find in one player in the industry you have a high probability of finding it among its players. The customers will move to rival players who are charging lower prices. The affordable prices make NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com are attractive to subscribe for the video streaming (Willcox, 2017). The customers will not see the need to pay high prices and they can get the same quantity at a lower price. There will be the demise of MovieFlix if customers start moving to the rival firms.

References

Lobato, Ramon. (2012). Shadow economies of cinema mapping informal film distribution. London: Palgrave Macmillan [on behalf of the] BFI. http://public.eblib.com/choice/publicfullrecord.aspx?p=4008902.

Willcox, J. K. (2017, March 2017). 5 Streaming Sites for People Who Want More than NetFlix. Retrieved from: http://www.consumerreports.org/streaming-media-players-services/5-niche-streaming-sites/