In the UAE, there is a shift from government control to independent markets provided all entry follows the proper channels. In addition, access to the internet has been increasing in the country in recent years with fiber optic cables present in many residential areas. The presence of a wealthy middle class in the country implies it is possible for Netflix to enter the market and gain prominence through competitive marketing. In addition, the emergence of Dubai as a popular tourist destination for the rich has opened up opportunities for western entertainment such as movies and series (Ferraro & Briody, 2015). The growth of the tourism industry and the increasing numbers of people with a secular affiliation presents a potential business opportunity to entertainment subscription.
In the UAE, the best form of business structure is the perfect competition (Ferraro & Briody, 2015). However, the absence of many competitors in the market proposes that Netflix can enter the UAE as a competitive monopoly and compete with Shomi to provide the same services. The aspect of free entrance allows Netflix to enter the market freely and to compete with the existing service providers. The target are all people between the ages of 18 and 30, the generation Y. the target values online entertainment and spends a lot of time on the internet through the social networking sites. Therefore, it is possible for Netflix to tap into the market by providing quality services at competitive prices. The network would also have to include material relevant to the local populations to stay competitive.
It is not possible to specify the possible number of clients in UAE. In big cities like Dubai, it is possible to have very high rates of subscription while the rest of the country is desert and unlikely to have the necessary infrastructure, fast internet connections (Hutt & Speh, 2009). The existence of competition also complicates the issues because it places additional incentive for competitive services and prices. Finally, cultural relevance is an important feature because of the restrictions placed on Muslims by their faith (Morozov, 2011). For example, according to the Islamic culture, the western dressing is indecent and unacceptable. Despite the leniency of the UAE compared to other Arab nations, it is important to consider potential opposition to internet entertainment.
- Ferraro, G., & Briody, E. (2015). The cultural dimension of global business (7th ed.). Boston: Pearson.
- Hutt, M., & Speh, T. (2009). Business marketing management: B2B (9th ed.). Mason, Ohio: Thomson/South-Western.
- Morozov, E. (2011). The net delusion: The dark side of Internet freedom. New York, NY: Public Affairs.