Final answer:
Netflix's business model today emphasizes streaming services and original content, urging customers to consume their digital offerings. The market competition has increased significantly since Netflix's early days, which could affect consumer response to pricing along with elasticity. Netflix supports a variety of platforms for content access.
Step-by-step explanation:
Netflix's business model in the present day is characterized by its focus on its streaming service, encouraging customers to subscribe and consume digital content over the internet. Historically, Netflix was a DVD rental service, but today it is predominantly an online streaming platform. The firm is focused on original content production, exclusive partnerships, and international expansion. They encourage their customers to stream content by continually updating their library with a wide variety of shows and movies, including Netflix originals.
The ease of access to other competing platforms might influence how consumers respond to Netflix's price changes. With over ten major competitors and nearly 200 smaller ones, the market is significantly more saturated compared to when Netflix had few rivals. The increase in competition may have a greater impact on Netflix than price changes do, as customers have more alternatives. Price elasticity, or the change in quantity with respect to a change in price, remains an essential concept in understanding consumer behavior in the streaming industry.
Supported platforms for Netflix include smart TVs, game consoles, streaming media players, set-top boxes, smartphones, tablets, PCs, and laptops, ensuring that customers have multiple options for accessing their service.