Abstract

Today, Netflix has established a position as the world’s largest video streaming service. The company nevertheless faces several challenges for maintaining this position and its continued global expansion, while at the same time retaining its crucial foothold back home in the United States—challenges brought into sharp focus amid interest in the level of debt the company is accruing in funding existing operations and expansion. This case describes key competitive and market pressures facing the company, both at home in the United States and overseas in the important Indian market. It invites students to place themselves in the shoes of senior management at Netflix as they consider the global/local dilemma options the company faces concerning the extent to which it can respond locally across a portfolio of diverse markets given the high costs of content creation, increased competition, and customer demand for lower prices.

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