The competition inside video streaming business are really competitive right now. With every platform that are offering their uniqueness program and affordable prices, it makes the consumer are need to think twice before deciding which service that they should join. In their early days, both Netflix and YouTube are serving different market in the competition. Netflix are competing inside the subscription based video rental service and YouTube on their free video service. But as the both company are growing and developing, they are trying to enter the new market. It started by Netflix that creating their streaming service and later on followed by other competitor such YouTube.
YouTube also trying to compete inside the subscription based streaming service by created YouTube Red and YouTube TV. However, Netflix already leading the way before YouTube launching their program which make Netflix are the one who taking the market. And it makes YouTube have to works hard on how making the current customers of subscription based streaming service to see YouTube Red and YouTube TV as one of choice for them when it comes into choosing subscription based streaming service. YouTube also need to expand their YouTube Red and YouTube TV into full global service, because until today their services is still limited to few countries only. By expanding their services, they can fully compete with other subscription based streaming service on the global scale.
On the other hand, YouTube are the winner in the free video sharing market. There are only few company that competing with YouTube in this market segment. With the value proposition that YouTube offers, it makes YouTube are standing out compare to another competitor on the free video sharing business.
Lastly, from this research paper we can learn on how Netflix and YouTube creating an innovative business model, a unique value proposition, and how the competition inside the video streaming business. Business model that they have on their companies is becoming one of the factor that makes their company success. With a unique value proposition that they offered to the market, makes them being the lead competitor on the market. Above all, As the competition in the streaming industry are becoming more competitive every time, both Netflix and YouTube still need to develop with their services in order to stay in the competition. It is really necessary for them to keep innovate and develop new services which their competitor do not have.