This article investigates the challenges that Netflix faced while consolidating its strategic operations in the Brazilian streaming video content market (Over-the-Top – OTT). North American entertainment company, Netflix was founded in 1997 in Scotts Valley, California, to initially provide DVD sales and rental by mail. In 2007, after delivering its billionth DVD, Netflix changed its business model, and introduced video on demand via streaming on the Internet. In 2011, one year after its first attempt at international expansion, Netflix entered the Brazilian market, offering streaming video content. On December 2017, Netflix had approximately 110 million subscribers worldwide (six million in Brazil), available in 190 countries. Despite its remarkable business performance, Brazilian Netflix operation faces several pitfalls and challenges. In recession since 2015, Brazil is experiencing a turbulent and unprecedented economic crisis due to the downfall in domestic consumption and decline in investment, followed by governmental corruption scandals and one presidential impeachment. Contrary to expectations, Netflix is doing quite well, even facing strong local competition from Pay-Tv providers, in a newly regulatory environment, yet to be fully developed. Also, Netflix is being accused of tax evasion and unfair competition in the country. Findings suggest that the Brazilian OTT market should be further regulated in the near future, and players must be strategically ready for this scenario.
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