Answer:

The streaming business of Netflix is driven by the principle of economies of scale. As the number of subscribers grows, unit costs decrease due to the company’s large fixed production costs. This leads to increased efficiency and lower prices, allowing the company to better compete in the streaming market. In addition, Netflix’s library analysis allows it to better develop and acquire content that can be tailored to the interests of its global audiences. This helps the Netflix brand to become more recognizable and popular worldwide.

Economies of Scale

Netflix’s streaming business is based on the principle of economies of scale. As the company’s subscriber base grows, so do its fixed production costs. This allows Netflix to reduce its unit costs, leading to increased efficiency and lower prices. This helps the company to better compete in the streaming market, giving it an edge over its competitors and a larger share of the market.

Library Analysis and Globalization

Netflix’s library analysis is an important part of its streaming business. The company uses this analysis to better develop and acquire content that can be tailored to the interests of its global audiences. This helps the Netflix brand to become more recognizable and popular worldwide, as it is able to provide content that is tailored to individual markets. Additionally, Netflix is able to create content that is specifically designed to draw in a global audience.

Conclusion

Scale is an important factor in the success of Netflix’s streaming business. The company’s economies of scale allow it to reduce unit costs, leading to increased efficiency and lower prices. In addition, its library analysis and globalization strategies help it to better develop and acquire content that can be tailored to global audiences, leading to increased popularity. As a result, scale is an important factor in the success of Netflix’s streaming business.