NETFLIX: COMPETITION

IN BUSINESS
Read the article “Netflix’s Foreign-Language Shows See Popularity Soar” by Bloomberg

WARM UP
Task 1: Decide if the following statements are true or false.

1. Netflix is the fifth-largest internet company.

2. Netflix spent $12 billion on original content in 2018.

3. Netflix tried to sell to Blockbuster in 2000 for $50 million.

4. Netflix’s current market value is around $85 billion.

5.

5. There are around 2400 original titles on Netflix.

6. On average, Netflix saves each of its customers from 160 hours of ads.

Source: article

Task 2: Discuss the following questions as a class.

1. Which of the facts did you find most and least interesting? Explain.

2. Who are Netflix’s biggest competitors?

3. Why do you think Netflix has become so successful?

4. How can they continue to be successful in the future?

5. Do you like any of Netflix’s original titles?

6. Are you happy with subscription services to avoid ads?

ESL Pals 1 Business English

 COMPETITION VOCABULARY
Task 1: Match the words from the box to their synonyms.

rivalry threat bargaining differentiation innovation

a. negotiating, bartering.

b. competition, contest.

c. hazard, risk.

d. progress, advancement.

e. distinction, uniqueness.

Task 2: Complete the sentences using the words from the box.

1. Amazon Prime is a _________________ to Netflix because they offer the same service
but with distinct content so some customers may leave Netflix.

2. It is important to use all of your strengths as a _________________ tool; by doing

this, you will be able to get a lower price.

3. There is a huge _________________ between Pepsi and Coca Cola because they sell
similar products, and target the same customers.

4. The company was successful due to its constant _________________.

5. Market research is crucial for identifying opportunities for _________________.

Task 3: Practice using the words by discussing the following questions.

a. How can intense rivalry help or hinder a business?

b. What threats are there in the market to your company?

c. How can strong bargaining skills help you progress in your career?

d. What role does product differentiation play in attracting and retaining customers?

e. Can you provide examples of how innovation has transformed industries?

ESL Pals 2 Business English

 HOW NETFLIX STAYS AHEAD OF THE COMPETITION
Task 1: Read the following extract of an article.

Netflix’s investment in foreign-language
shows is paying off at home, with U.S.
viewership of the titles growing more
than 50% this year. Shows from Spain,
Germany and France ranked among the
most popular shows on Netflix, while
viewership of dramas from Korea almost
tripled. The fourth series of “Money
Heist,” a crime show from Spain, was one
of the 10 most popular shows in 92
different countries this year.
That strategy has been a major reason for
the company’s success in signing up
customers abroad, both over the last
decade and this year in particular. The
company is on track to add the most
customers in its history, and has said it
will eclipse 200 million subscribers
worldwide in the year’s final quarter.
More than 60% of its users come from
outside the U.S., including 62 million in
Europe, the Middle East and Africa.

Once reluctant to share any data on what
its customers watched, Netflix has
released more and more information to
show what is working and dispel criticism
that programs get lost due to the large
number of series and films already on
offer. While most U.S. media companies
have historically focused on producing
shows in English, Netflix has spent
billions of dollars to produce shows in
many countries around the world.
However, the majority of Netflix’s most
popular programs are still in English.
When Netflix released a list this summer
of its 10 most popular original movies,
they were all in English. The Netflix
statement also revealed some viewership
trends during the pandemic. Interest in
home baking shows surged almost 50%
in March, while searches for sad movies
climbed in April. October was the year’s
biggest month for comedy viewing.
Adapted from bloombergquint.com - article

Task 2: Complete the following speaking exercise as a class.

Use the phrase box below to discuss the article with a classmate. Do you think this strategy
will continue to be successful? Does it relate to your company? Say as much as you can.

Phrase box
● In summary, Netflix’s strategy is…
● According to the article…
● I like / dislike the idea because...
● I am convinced / not convinced that…
● I think Netflix’s competition will react to this by...
● This strategy relates to my company because...

ESL Pals 3 Business English

 NETFLIX’S STRATEGIES TO BEAT THE COMPETITION
Discuss each of Netflix’ strategies to beat the competition, using the prompts below.

a. Expand on the meaning of each point.

b. Explain how each point helps Netflix stay ahead of the competition.

c. What are the challenges associated with one.

d. Can you think of any other strategies Netflix uses or could use?

e. Use the phrase box from the previous exercise.

1. Original content.

2. Marketing.

3. Partnerships with actors and directors.

4. Partnerships with studios.

5. Use of algorithms to give a personalised experience.

6. Data analysis to understand customer and market trends.

ESL Pals 4 Business English

 COLLOCATIONS RELATED TO COMPETITION
Complete the collocations by matching the words from the box to the definitions.

Tough Retain Enter Face Target

1. _________ customers: To keep customers buying

2. _________ competition: When you compete directly against someone else.

3. _________ audience: The clients you are marketing your product to.

4. _________ competition: Competitors who offer good products too.

5. _________ the market: When a new company starts selling / operating.

Task 2: Complete the sentences by using the collocations from above.

a. Our target ______________ is adults over the age of 40.

b. To ______________ customers, we offer effective loyalty programs.

c. We ______________ a lot of competition so we must innovate.

d. Success requires navigating ______________ competition with strategic planning.

e. We're prepared to ______________ the market confidently with our unique offering.

Task 3: Practice using the collocations by answering the questions.

1. What strategies does your company use to retain customers?

2. Does your company face a lot of competition in the market?

3. Who is Netflix’s target audience? Explain.

4. Do you think Netflix has tough competition? Explain.

5. Do you think a new business could enter the market and become the number 1
streaming service in the world?

ESL Pals 5 Business English

 COMPETITIVE ADVANTAGE BY MICHAEL PORTER
Task 1: Read about Michael Porter’s classic study on ‘Competitive Advantage’ below.

Michael Porter's model identifies and analyses five competitive forces that every business
faces. These five forces help us identify an industry's weaknesses and strengths.

Porter's five forces is a business analysis model that helps to explain why some
businesses / industries are able to sustain different levels of profitability.

The model was published in his 1980 book, "Competitive Strategy: Techniques for
Analysing Industries and Competitors."

The five competitive forces model is widely used to analyse the structure of a company as
well as its corporate strategy.

Porter identified five undeniable forces that play a part in shaping every market and
industry in the world. These five competitive forces are frequently used to measure
competition intensity, attractiveness, and profitability of an industry or market.

Porter's five competitive forces are:

1. Rivalry and competition from current businesses.
2. The threat of new competition entering the market.
3. Bargaining power of suppliers
4. Bargaining power of customers / clients.
5. Threat of new, innovative products / services replacing yours.
Adapted from article

Task 2: Discuss the study using the questions below.

a. Discuss the meaning of each of Porter's five competitive forces.

b. Which of the competitive forces does your business feel the most? Explain.

c. Describe how customers and clients bargain with your company.

d. How powerful are your suppliers? Are you able to switch if necessary?

e. Could new, innovative products put your company out of business?

f. How easy would it be for a new company to enter your market? Explain.

g. Who are your company’s rivals? How do they affect your strategy?

ESL Pals 6 Business English

 LET’S DEBATE

Study the statements, then decide if you agree or disagree with them. Use the language
in the table at the bottom of the page to help structure your answer.

Express an opinion Express disagreement

It seems to me that… I don’t agree with you about…
I feel that… I can’t accept your view that…
I’m absolutely convinced that… I have a different opinion…
In my opinion,… I’m not sure if…
I believe / suppose / feel (that)… I’m not convinced that…

Express pro’s and con’s Summarise

There are two sides to this point... So, in conclusion…
On the one hand…,on the other hand… To summarise..
An argument for / against is… Overall, it is clear that…
Some people think that…,others say that… As a result..
The advantages / disadvantages are... The bottom line is...

ESL Pals 7 Business English

HOMEWORK
IDIOMS RELATED TO COMPETITION
Task 1: Complete the idioms by choosing the correct word.

1. Ahead of the
a. curve b. others

2. Corner the
a. customers b. market

3. Raise the
a. bar b. car

4. Head to
a. head b. face

5. Make a
a. money b. killing

Task 2: Match each idiom to the correct definitions.

1. to improve standards and expectations.

2. to have control of the market.

3. to earn a lot of money.

4. to be in front of the competition, to be more innovative and progressive.

5. when two parties confront each other.

Task 3: On a separate piece of paper, write detailed answers to the following questions.

1. Do you think Netflix can stay ahead of the curve? Explain.

2. Do you think Amazon will corner the market? Explain.

3. Do you believe Amazon Prime has raised the bar above Netflix? Explain.

4. Are Netflix and Amazon Prime competing head-to-head? Or are there other
competitors and factors? Explain.

5. Do streaming services make a killing? Or do they have a lot of expenses? Explain.

ESL Pals 8 Business English

 NETFLIX VS. THE COMPETITION
Task 1: Watch the video “Why Amazon Is Going After Netflix” by CNBC, then decide if
the statements are true or false.

a. Amazon Prime Video is the most popular streaming service in the world.

b. Amazon Prime Video only offers TV shows and movies.

c. Amazon's original video strategy was to buy content that could win Hollywood
awards.

d. 'Transparent' and 'Marvellous Mrs. Maisel' were not successful shows for Amazon.

e. Jennifer Salke changed Amazon's video strategy to look for content that appeals to
smaller audiences.

f. Amazon bought the rights to 'Lord of the Rings' for $250 million.

g. Amazon plans to run at least three seasons of the 'Lord of the Rings' series.

h. Amazon's next big splash will be in the field of music streaming.

i. Amazon can market its content within an Amazon search for merchandise.

Task 2: On a separate piece of paper, write detailed answers to the following questions.

1. What advantage does Amazon have over traditional TV networks when it comes to
advertising?

2. What is the potential revenue opportunity for sports organisations if they sell their
exclusive rights to Amazon?

3. What is the bigger battle beyond just content for Amazon and other tech platforms?

4. What is the competition between Amazon and Apple when it comes to original
content?

5. In your own words, summarise everything you learned in the video.

ESL Pals 9 Business English