What is an Oligopolistic market? Oligopoly market is a type of market where only few and certain companies thrive and gain influence on the market. Oligopolies typically have tight and strict barriers of entry, which promotes it’s competitive nature that only allows prevalent and big companies to control the market. These big companies have control over the price of the products or services offered. A product that I regularly purchase (or renew) from a firm that operates in an Oligopolistic industry would be my subscription to Netflix. Netflix is a part of an Oligopolistic industry because they are one of the major and popular entertainment service company, which allows streaming of a diverse variety of films.

What is an Oligopolistic market?

Like in an Oligopolistic market, only a few companies survive and gain control over the market due to tight barriers of entry and high competition. A relevant rival of Netflix would be Amazon Prime Video. An interdependence between Prime and Netflix is that Amazon Prime and Netflix sell very similar categories of services, since both offer movies to watch and stream at home or wherever using one’s mobile device. However, the variety and selection of movies may slightly differ. Netflix also produces its own show series, and so does Amazon Prime.

Furthermore, both companies have similar subscription fees, with Netflix (basic plan) $8.99 per month and so does Amazon Prime Video. Since both streaming companies sell their subscription plans under similar fees, this conveys that there is no significant price competition between the two. Most likely, their customers choose between the two based on their services. Another interdependence between the two companies is how they similarly target the public by changing their services every season, and offering new movies/films that fits the appropriate season. By doing this Netflix and Amazon Prime are using similar marketing/advertising techniques to ultimately target similar groups of audiences around the globe. APA style