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Netflix Business Model & Economics

In Practise Interviews

CHAPTER

Analyzing Maintenance Content Spending for User Retention in Streaming Services

The chapter examines the impact of content spending on user retention in a leading streaming service, emphasizing the need for continuous investment in high-quality content to expand the user base and potentially increase pricing. It touches on Netflix's strategy of owning a significant portion of its content library for long-term sustainability and user engagement, along with the importance of regular content updates and global rights for simultaneous release. The conversation also explores the challenges of content distribution in the global market, the shift towards high-speed internet services, and the necessity of balancing tech innovation with creative culture for success in the streaming industry.

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