Moreover, a positive of vertically integration, would eliminate its dependence on the studios. According to Lueng (2016), “with a total revenue in excess of $6.7 billion reported after the end of Q4 2015, it would seem that Netflix doesn't have an issue with cash flow. However, in reality, Netflix hemorrhages money due to the exorbitant overhead of licensing titles and marketing expenses. Furthermore, Netflix continues to replace expired titles with others while also producing new original content. Integration, would open Netflix up to a new market, which in turn would give it a competitive advantage over its competition. Consequently, by providing additional services, integrated companies would be able to lower costs to consumers”
Moreover, a positive of vertically integration, would eliminate its dependence on the studios. According to Lueng (2016), “with a total revenue in excess of $6.7 billion reported after the end of Q4 2015, it would seem that Netflix doesn't have an issue with cash flow. However, in reality, Netflix hemorrhages money due to the exorbitant overhead of licensing titles and marketing expenses. Furthermore, Netflix continues to replace expired titles with others while also producing new original content. Integration, would open Netflix up to a new market, which in turn would give it a competitive advantage over its competition. Consequently, by providing additional services, integrated companies would be able to lower costs to consumers”