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Netflix has a Oligopoly structure because there are few sellers or competitors (like Amazon Prime, Hulu etc.) These competitors sell basically the same product as Netflix, which is the ability to stream movies. What makes the products a little bit different is that each company provides the same or wider assortment of movie choices.

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Some disadvantages of having an oligopoly market structure is that because there are so few seller the companies collude to form fixed prices. When sellers collude they can form a cartel which has the power of a monopoly structure. Another disadvantage to a oligopoly market structure is that its costs a lot of money to compete with other companies in advertising and the ability to draw i customers. An example of this is when Netflix started to become popular because it is easy to use, affordable, and convenient for its customers. Because of all these things Netflix was able to force competitors like Blockbuster and other movie rental places out of business because it took all their customers.

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Some advantages of having a oligopoly market structure is that there are fewer competitors in the market so sellers will lower prices or offer discounts so they don't lose customers.These companies in an oligopoly structure compete for customers through advertising, which in turn gives the customer the best quality information so they know if what they are getting is what they really want. An example of this is how Netflix has become the prominent company in movie streaming. Because they are the most popular they provide a lower monthly fee and also are aloud to have the newest movies and tv shows on the market. Meanwhile they also have they ability to produce their own Netflix original tv shows and movies.

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Netflix has a Oligopoly structure, but could be considered close to a Monopoly structure  even though they are illegal.

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By Avery Moore, Brianna Yates, Bryce Harvey, Juliet Medley, and Remy Smith Gold 1-- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free.

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A Oligopoly structure has many barriers to enter or exit the market that's why it contains very FEW sellers. These few sellers sell similar or identical products to their consumers.