The Role of Digital Transformation in Driving Value Creation in the Entertainment Industry on Foreign Developed Markets: the Case of Netflix in South Korea and Australia

In this paper, we try to identify the role that digital transformation plays in driving the value creation of entertainment firms on foreign markets. To this end, we, first analyze the theoretical aspects related to digital transformation, business models value dimensions and value creation components. In the analytical part, we investigate the case of Netflix’s ongoing digital transformation, what are the core components of its value creation and how it is creating value on foreign developed countries, specifically, Australia and South Korea. The key findings of our results discussion show a heavy concentration of digital capabilities in the core competencies of entertainment firms enabling them to, digitally, create and deliver content with the opportunity to create new revenue streams. The specificities of developed countries lie in the digital maturity of their domestic entertainment industries and the affluence of their markets.