-Effectiveness of marketing programs
 -Flexibility in content delivery
 -Unflexibility in case competitions
 -Effectively uses the Long-Tail Method: (1) selection attracts customers, and (2) the Internet allows large-selection inventory
 efficiencies that offline firms can%u2019t match.
 -Use of Cinematch: customers get movies that match their tastes rather than a general list of "high ranked" movies.
 -Patent protected recommendation system

Reduced demand for high price subscriptions
 Reliance upon business partnerships may increase acquisition and licensing costs
 Loss of key partnerships limited streaming content
 lack of updating movie content

Growing demand for online video streaming
 Strategic partnerships with third-party businesses (Nintendo, Microsoft)
 Growing demand for game rentals
 Growth in poratble media play

-Must absorb shipping costs which negatively affects operating margins
 -Technology is ever changing and Netflix must consistently improve method of delivery.
 -Other companies offer video-game rental
 -Piracy
 -Video On Demand (VOD)
 -Suppliers shifting to compeititon