In this chapter the book deals with strategic alliances.
These are alliances created to reduce costs and hopefully increase revenues and
profits for both firms. There are three types of strategic alliances: equity,
non-equity, and joint ventures. Netflix has been involved in a few different
strategic alliances. They have formed a strategic alliance with Google for the
sole purpose of defending net neutrality, making sure that they always have
sufficient bandwidth for their respective companies which are very bandwidth intensive.
Netflix has also entered into joint ventures when they produce content for
their own subscribers. An example of this alliance is like the one between
Disney and Netflix for the production of Marvel series. This alliance has
resulted in enabling Netflix to be the first company to stream the new Star
Wars movie in certain markets, i.e. Canada.
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