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Netflix Case Assignment 2

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Netflix Case Assignment 2

A supplementary product is a good used with another good. A supplementary product is

of little or no value when consumed by a loan, but it becomes valuable when added to another

good. The law of demand suggests that when the price of a supplementary product rises, the

demand for its supplement automatically falls because it will be possible to use the product

without its supplement. On the other hand, a substitute product is a good that may be used in

place of another product. Substitutes usually occur when two different products can be used for a

similar purpose. Netflix is currently a substitute product in terms of cable TV.

Netflix is regarded as a substitute product because customers are provided with numerous

products that provide close or similar services. Amazon, Google, and Disney are some of the

close substitutes for Netflix. Some of the Social Media players such as Facebook and Twitter are

other substitutes to Netflix, which stream major events (Burroughs 2019). These substitutes

enable a customer to have more choice when considering the one to use. However, the plan of

unbundling cable channels may result in Netflix being regarded as a supplementary product

(Vickers et al., 2017). Unbundling cables is where cable customers will have a chance to pay for

the channel they are using rather than the whole cable package (Lamkhede & Das 2019).

Unbundling will significantly reduce the cost of cable, which will lead to an increment of

subscribers of the chosen cable channels.

Netflix is a substitute product, and its substitutes may include Amazon, Google, and

Disney. When customers are presented with close or similar products, they usually choose the

one with a lower cost. Netflix is regarded to be of lower cost, and customers mostly prefer it.

Unbundling of cables will result in Netflix being a supplementary product. Lowering the cost of
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cables, which increases the number of subscribers of the chosen cable channels, will make

Netflix a complimentary product.

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Preferences

Burroughs, B. (2019). House of Netflix: Streaming media and digital lore. Popular

Communication, 17(1), 1-17.

Lamkhede, S., & Das, S. (2019, July). Challenges in search on streaming services: netflix case

study. In Proceedings of the 42nd International ACM SIGIR Conference on Research

and Development in Information Retrieval (pp. 1371-1374).

Vickers, A. J., Kent, M., & Scardino, P. T. (2017). Implementation of dynamically updated

prediction models at the point of care at a major cancer center: making nomograms more

like netflix. Urology, 102, 1-3.