2014 Nielsen report showed that 90% of homes in the United States with streaming video service choose Netflix. However, almost one-third of these households subscribe to more than one video streaming service, such as Amazon Prime or rival Hulu.  One of the biggest issues Netflix faces is the cost of switching services is so easy. There is no annual contract, and the cost of signing up for service is minimal.

As more television studios and movie networks debut their own streaming services, some are less willing to share content with Netflix. In this sense, some of the company’s suppliers have become its competitors, and that makes competition more difficult. 

Netflix competes against Hulu, HBO and Amazon directly each one streams movies as well as TV shows and creates some of its own content. Netflix costs around $96 per year as of 2017, which is the same as Hulu, but only if you choose a Standard Definition package. If you want HD, it costs $9.99 per month. Amazon Prime is $99 per year and includes HD video as well as free two-day shipping at Amazon . com

One such contender is YoutubeRed a premium version of YouTube with some extra features. Plus, it gives subscribers access to Google Play Music, which normally costs $9.99 per month.

It is hard to compete against free, and Netflix faces this competitive force on several fronts. For one, Netflix faces a risk of people substituting its service by pirating. Whether the video pirates get their videos from one of the many piracy sites on the Internet or through a friend’s borrowed Netflix log-in, there is an enormous cost for the company.

 1. US has restrictions on countries like Crimea, North Korea and Syria thus leaving a gap in market for these countries

 2. Netflix is still not populated in the most populated country, i.e. China due to permission issues from Chinese government

 3. Need to work on content restrictions so that same films and TV shows are available in every country

1. Fluctuation exchange rate  can affect revenuess such as Netflix's expansion is the issue of exchange rates. The company aims its pricing around the US's $10 fee, however, within certain markets this can be as much as $19 due to exchange rates and VAT. This moves Netflix into a luxury purchase for some customers and could potentially affect attracting a whole 'price-conscious' segment (Pelts, 2016).

2. Domestic streaming cost, domestic marketing also increased which need to be controlled 

3. Cash outflow continue to increase thus less liquidity 

Netflix has a big brand reputation and and prides itself in complying to ethical business standards an morality 

Netflix is known for giving away student scholarships and charities to aid financially challenged students 

The CEO Hastings has set an example by giving a large sum of his personal funds to the Giving Pledge Charity

1. improvement in compression techniques will improve overall quality of streaming with relatively less data.

2. the focus is not only on video streaming quality but also on improving experience in convenient payment and delivery processes 

3. The new thumbs up/down rating system will help in improving personalisation, make the front screen on Netflix even more relevant to the users. 

1. Need to fight battles against Geoblocks and copyright infringements 

2. Video piracy is the reasons of huge loss to he streaming and cinema industry thus punishments to the offenders should be severe. 

3. Streaming on multiple devices should be checked as users are sharing their credentials to reduce cable bills. 

1. Using wind power to offset its energy for cloud storage is a new initiative to reduce its carbon footprints.

2. For streaming services like Netflix, the access to data servers puts huge pressure on the environment. In partnership with Greenpeace, tech companies are beginning to look at solutions to lessen their carbon footprint. At current usage rates, tech companies are being told by global governments to pay part of an environmental bill worth upwards of $11 trillion by 2025 (Lewis, 2016).