Effectiveness of marketing programs
 Flexibility in content delivery
 Unflexibility in case competitions

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

Growing demand for online video streaming
 Strategic partnerships with third-party businesses (Nintendo, Microsoft)

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)