Free Essay

Netflix

In:

Submitted By emane
Words 481
Pages 2
Company Overview
Netflix has given rise to the new way viewers access their television. The company provides its customers a mail DVD and/or streaming media service for a low monthly subscription. The company’s successes is attributed mostly by its site, Netflix.com. The site allows audiences to view their media through access to a library of near unlimited movies and shows.
Business Strategy
Netflix’s biggest advantage over its competitors is that it has offered its own largely successful shows, such as House of Cards and Orange is the New Black. These shows are not released like the typical week to week basis, but rather each season is released all at once.
"What we’re seeing actually is the breakup around traditional broadcasting models around genres as much as anything else,” says Matt Locke of Story Things Media Company. [1] This new format of viewing shows has given rise to what is known as “binge watching,” where consumers watch entire seasons at a time. Before this, viewers would have to patiently wait weeks at a time to watch their favorite shows and would be out of luck if they happened to miss it.
Netflix is constantly pursuing new ways to offer the customer more and providing a first in the market. On January of 2015, Sony and Netflix partnered to release The Interview movie after only one month of its release.

Global Presence
"It’s going to take another couple of decades to disrupt the current business models, but I would never bet against audiences changing the business models.” [1] In a market that is widely determined by the consumer, Netflix seeks to disrupt what has been dominated by cable TV. Viewers are quickly realizing that they are able to watch their content without giving in to cable company’s high package prices. Netflix’s challenge as of late is it’s competition with TV companies, but they have assured those companies that it is any ally and doesn’t seek to steal its viewers. [3]
Vision, Mission Goals
Statement: Becoming the best global entertainment distribution service. Licensing entertainment content around the world, creating markets that are accessible to film makers, helping creators around the world to find a global audience. [2]
Ethics and Corporate Social Responsibility
Netflix’s ethics start in-house by providing a lax, yet hard work environment. Employees are encouraged to take vacation time, as long as they work at their highest level and finish what needs to be done. This translates back to its customers by providing a large range of service at a lower cost than its competitors and other platforms such as cable TV.

[1] http://america.aljazeera.com/articles/2014/2/14/house-of-cards-netflixtelevision.html
[2] http://www.strategy-business.com/article/cs00003?gko=b2e51
[3] http://www.nytimes.com/2015/09/28/business/media/in-quest-for-global-presence-netflix-acquires-rights-to-3-more-shows.html

Similar Documents

Premium Essay

Netflix

...Netflix Iva Flores Excelsior College Business Finance What is Netflix? Is it worth it to gamble your money on this stock? One may wonder should I invest in this company or just walk away. You would have to analyze the company's financial background and ensure they are financial health to invest in this company. To find information on Netflix you would have to search online and look at the stock market websites like NASDAQ, AMEX, and NYSE to review their past financial statements. Netflix is one of the largest leading internet television network company in the world today with over 50 million members in more than 40 countries. Reed Hastings and Marc Randolph started Netflix in 1997. In 2002, Netflix makes its initial public offering of 5,000,000 shares at $15.00 per share on NASDAQ under the tickler “NFLX”. (pr.netflix.com) They started streaming service in 2007 and made it easier for people to watch and enjoy TV shows and movies anywhere, any place, and anytime as long as they have internet connection, TV, computers, and mobile devices. This type of market is very competitive especially with all the changes that are going on in the future. There are many competitors that Netflix has to compete with like Redbox, Hulu, and other companies. Netflix core strategy is to grow their streaming subscription business domestically and internationally. Also, their goal is to expand streaming content, focus on programing an overall mix of context to satisfy customers...

Words: 720 - Pages: 3

Premium Essay

Netflix

...Netflix Assets We classify our streaming content obtained through a license agreement as either a current or non-current asset in the consolidated balance sheets based on the estimated time of usage after certain criteria have been met, including availability of the streaming content for its first showing. We amortize licensed streaming content on a straight-line basis generally over the term of the related license agreements or the title’s window of availability Content is obtained through direct purchases, revenue sharing agreements and license agreements with studios, distributors and other suppliers. DVD content direct purchases or revenue sharing agreements. Streaming content is generally licensed for a fixed fee for the term of the license agreement but may also be obtained through a revenue sharing agreement. DVD library is its non current asset. The Company amortizes its direct purchase DVDs, less estimated salvage value, on a “sum-of-the-months” accelerated basis over their estimated useful lives. The accounting method for backlog DVD’s was changed after 1994. Our recent survey work suggests that NFLX streaming offering is compelling and should get more so as it acquires additional streaming content. In turn, this is creating a virtuous cycle whereby NFLX sub base grows, leading to greater financial resources to acquire more content to improve the user experience and continue to grow the sub footprint. Additionally we believe DVD costs may fall quicker...

Words: 2677 - Pages: 11

Free Essay

Netflix

...Netflix strategy has no brick and mortar stores, big stores with a large variety of movies in stock. Netflix relies on the internet for customers’ orders and mail system for the delivery. The company does not have late fees, fluctuating monthly fees, predetermined rental periods, instead has a flat fee. Netflix, allows its customers to view unlimited streaming of movies and TV shows for a monthly fee, and has also developed platforms to deliver its titles for Nintendo Wii, Xbox 360, PlayStation 3, and TiVo. Netflix also supports decks from Panasonic, Insignia, and Seagate, and a number of Android and Apple mobile devices including the iPad. Though Netflix has faced some challenges in previous years because of changes it made to its pricing strategy. Netflix has a strategy that would sustain its competitive advantage for many years to come. Netflix does not have to do or perhaps little marketing to rise to the top of the online marketing. A few well-placed ads will do the trick. Simplicity is the idea, so customers do not feel the pressure. Although, the numerous choices overall, makes Netflix an outstanding company to stay to watch the customer’s preference. During the company's rebranding strategy, there was much confusion with the customers. Some of the customers felt betrayed by Netflix and switched to other services such as, Hulu and Blockbuster. This being said, most of their customers stayed and went along with it. Though they lost some customers during this time, it...

Words: 516 - Pages: 3

Free Essay

Netflix

...INTRODUCTION Netflix is an Internet based organisation that provides online streaming and DVD rentals to customers all over the world. Founded in 1997 by Marc Rondolph and reed Hustings Netflix reached 27 million subscribers at the end of January 2013.In the beginning when DVDs first came out to the market the CEO and one of the founder OF Netflix Reed Hustlings take this as an opportunity, The plastic disc small size and light weight make it cheap to send it through mail. Netflix takes advantage of the US postal services and send rental DVDs to customers through mail and accept returns the same way. With time Netflix has evolved into a company with reputation of low charge, unlimited movies without a due date, no late fees shipping or handling fees. Netflix then makes it more easier for costumers by introducing the online streaming options to watch movies at their on time when ever they are free. The online streaming allows subscribers to browse by many different categories, such as moods, qualities, story line, release dates, music, and cultures. Netflix search features are highly comprehensive making finding a film very relaxed and fun. If someone wants to watch a specific show but does not seems to remember the name of show it can be easily lookup by the starring actor. After selecting a title the online database of Netflix shows a DVD case and details about all the actors and actresses staring in the film/show. Environmental scan of Netflix. Internal Analysis Netflix vision...

Words: 954 - Pages: 4

Premium Essay

Netflix

...Corporate Financial Analysis and Security Research of Netflix, Inc. [pic] . Finance 307, Professor Peter Lou GGU, Summer 2013 Table of Contents Business Description……………………………………………………………………….. 3 Industry Position and Business Model…………………………………………………… 4 Industry Analysis……………………………………………………………………………. 4 Historic Financial Analysis……………………………………………………………….. 5 Weighted Average Cost of Capital……………………………………………………….. 6 Financial Statement Analysis……………………………………………………………… 7 Bond Valuation I……………………………………………………………………………. 10 Bond Valuation II…………………………………………………………………………… 11 Stock Analysis……………………………………………………………………………….. 11 Off-balance Sheet Items……………………………………………………………………. 12 Revenue and Earnings Growth Analysis…………………………………………………. 12 Conclusion……………………………………………………………………………………. 13 Exhibit I……………………………………………………………………………………….. 14 References…………………………………………………………………………………….. 15 Business Description Below are some fast facts regarding Netflix and a quick history snapshot. |Fast Facts | |Founded |1997 | |Location |Los Gatos, CA | |Industry Sector |Internet Television...

Words: 3851 - Pages: 16

Premium Essay

Netflix

...COMPANY CASE Netflix: Disintermediator or Disintermediated? PRESENTED BY: DANIEL RICARDO ORDOÑEZ 201312625 MARIA LUCIA PACHON 201311104 YALILE KATHERIN ROA 201313192 THE SABANA´S UNIVERSITY BUSSINESS ADMINISTRATION MARKETING GROUP 1.2 2015 1. BACKGRAUND Netflix is a company that was created from the need generated by getting movies to watch from the comfort of the house, although at that time the companies who led this market were Blockbuster and Redbox , but to get them you had to approach a local Blockbuster or go a supermarket or store nearby where a dispenser Redbox addition these had a specific time to be returned, if not met you could have a fine is found, Netflix identify these weaknesses in them and became its advantages as well when you wanted to watch a film could access the internet make your Netflix account and solicitabas the list of movies you wished to see them received and send you the movies , these could be the time you wished and return , so Netflix quickly gained the lead. But with technological advancement and different devices that were created Netflix realized that people prefer to search online movies so they should not leave home or wait for them to arrive , so the company decided to create direct platform on which there are not only movies but also get series , plus Netflix decided also be associated with the different technological advances for these Netflix had already built into the device as we see when we buy a PlayStation...

Words: 2422 - Pages: 10

Free Essay

Netflix

...Research Paper: Netflix Founded in 1997, Reed Hastings observed; noticed and assessed that there was a growing demand for motion picture rentals. Netflix began with an offer for their ever-growing customer base in which competitors like Blockbuster and Hollywood Video had not – the allowance for customers to select and purchase movie rentals from the privacy of their own home. No one needed to wait in a snake like line in a retail store anymore for a secondary movie pick because their primary selection was ‘sold-out’; as such, the rivalry of the Netflix against all other competitors came into existence. In 2010 the conditions that all the home entertainment companies must implement to meet or exceed current standards is more important than any previous time in history. This research paper will address a brief history of Netflix, the competitive industry in which they compete, potential breakdowns, and finally an offer of speculation for how to address forecasted future breakdowns in a way that will turn them into positive possibilities. The vision of Netflix is simplistic: “Our vision is to change the way people access and view the movies that they love.” (Netflix.com, Hastings Reed, 2011). With more than 15 million current members, Netflix is the world’s largest subscription service for the streaming of television and movie picks and sending movies in the mail. New entrants are always a threat to existing companies like Netflix in the industry; however, Netflix continues...

Words: 1365 - Pages: 6

Premium Essay

Netflix

...Name:Leuteris Stamatiou Case 2:Netflix Movie rental business The movie rental business is consisted by three major players, Netflix, Blockbuster and Wal-Mart. Netflix was founded by Reed Hastings, a man who captured the idea of Netflix when he was late returning the movie Apollo 13 to his local video store and being charged with a forty dollar fee.Netflix is the number one in the movie rental business but if the company had delayed its public stock offering, the firm would be greater and stronger for its rivals. On the other hand Blockbuster a company dated back to 1985, when David Cook sought to fill a niche market for customers wanting to rent a variety of VHS titles, and Wal-Martthe largest firm in the United States ranked by sales, are the major rivals of Netflix. Blockbuster and Wal-Mart are the ones who mimic Netflix with cheaper rival efforts and “declared” a price war in the movie rental business. But in the end Wal-Mart dumped the experiment in DVD-by-mail and Blockbuster had been mortally wounded with million of dollars losses leaving Netflix alone at the top. Core business/Value-chain For a monthly subscription fee under the standard plan, subscribers can rent as many digital video discs (“DVDs”) as they want, with a number of movies out at a time, and keep them for as long as they like. There are no due dates and no late fees. DVDs are delivered directly to the subscriber’s address by first-class mail from distribution centers throughout the United States...

Words: 1207 - Pages: 5

Free Essay

Netflix

...I. Current Situation a. Current Performance b. Strategic Posture i. Company provides a general strategy statement. Not publically available vision statement or mission statement ii. They are in the internet subscription business. They are in this so users can instantly watch movies or TV programs iii. The objectives is to maximize member satisfaction and month to month subscription retention. Corporate objectives: customer loyalty, profits, growth. Busniness objectives- customer service Functional objectives- Marketing and sales. They are all consistent with each other. They all have one goal and that is to be profitable and make sure the customers are satisfied with their business. iv. Strategy- pursuing new content deals and streaming rights to current season shows. Also looking at new ways to improve the subscriber’s experience. Encouraging multiple accounts in one household. v. Privacy policies, code of ethics, insider trading policies. All the policies are consistent with each other. They all want their employees and board members to act ethically. They want their nonpublic information to stay private and prohibit insider information trading. vi. II. Corporate Governance a. Board of Directors i. Mostly External members. Jay Hoag- Technology Crossover Ventures. Timothy Haley- Redpoint Ventures. Ann Mather- MGM holdings Inc. Leslie Kilgore- Linkedln Corporation. Richard Barton- Zillow, Inc. A. Battle- Aspen Institute. Reed Hastings- Chair of board ii. Significant...

Words: 1194 - Pages: 5

Premium Essay

Netflix

...Attachment C From Bloomberg July, 2011 Netflix Raises Prices 60% for DVD Customers Netflix, the online and mail- order movie rental company, raised prices by 60 percent for U.S. subscribers who want both services, citing the costs to acquire and deliver films and TV shows. Netflix will no longer offer a $9.99 package of DVD-by-mail and unlimited streaming, the company said in a statement today. Instead, more than 23 million subscribers will pay $15.98 monthly beginning Sept. 1 if they choose both options, or $7.99 for just one. The company introduced a DVD-only plan for $7.99 on July 8 for new subscribers and extended that to current customers to reflect the costs of acquiring and delivering content digitally and by mail, Steve Swasey, a Netflix spokesman, said in an interview. Many customers want the option of streaming-only or DVD-only packages, he said. “We wouldn’t have charged this when the streaming catalog was still lean,” Swasey said. “The streaming catalog is robust to the point where a lot of people won’t want DVDs anymore.” Netflix, based in Los Gatos, California, needs to boost revenue to raise funds for expansion and the acquisition of new content, Tony Wible, an analyst with Janney Montgomery Scott LLC, said recently in an interview. He has a “sell” rating on the shares. Since 2007, Chief Executive Officer Reed Hastings has increasingly focused on delivering movies and television shows via the Web to televisions, set-top boxes and mobile devices...

Words: 414 - Pages: 2

Premium Essay

Netflix

...Netflix is the leading movie and television streaming company which was established in 2007. Netflix began as a disc rental company which offered door to door movie rentals at a monthly rate. The company also began a video streaming service which consumers pay a monthly subscription fee to access thousands of movies and television shows at a low rate of $7.99 per month. This allows the user to watch at anytime, anywhere with an internet access point and a viewing device, to stream as many movies or videos as they like. Netflix has negotiated terms with networks managing titles to either receive a profit of each title or a cut from subscription fees. How strong are the competitive forces in the movie rental marketplace? Do a fiveforces analysis to support your answer. The competitive forces in the movie rental marketplace are not very strong. Netflix’s major competitor is actually just RedBox. Most people would think Blockbuster Express kiosks would be a serious competitor, but actually Blockbuster Express (not related to Blockbuster LLC or Blockbuster stores) is operated by RedBox. According to NPD Group, a market research company, overall disc rentals was down in 2011, but it still managed be the top source of movie media in homes with 62 percent of transactions being disc transactions. At its peak, Blockbuster had operated approximately 9,000 stores, they are now operating approximately 900 stores worldwide. RedBox, a recent competitor, operates approximately 42,000 kiosks....

Words: 2026 - Pages: 9

Premium Essay

Netflix

...In the late 1990s, there was an explosion of dotcom in the market. These dotcoms offered websites of wide variety of services and products. In 1997, NetFlix.com, Inc. was founded by Reed Hastings and Marc Randolph. Netflix was an internet-based unlimited rental subscription service for DVDs. The DVD became an evolutionary multimedia player, with the capabilities of storing entire feature-length film, as well as additional information such as subtitles in various languages, making of films and information about the actors, directors and producers. With its high quality and additional features, the new DVD technology was an attractive alternative to its predecessor the videocassette. Since the initial launch, Netflix had experienced substantial success, generating revenue growth of nearly 360% from 1998 to 1999. In doing so, they were able to hire on addition employees of 224. Also, they were able to generate an abundance of titles, in order to ensure consumer satisfaction upon rentals. Although, they have reported a net loss for the previous two years, NetFlix business model has revolutionized the way people will rent movies. They have several opportunities to differential themselves from their competitors, i.e. Blockbuster, Hollywood video or HBO and Cinemax. These differentiating advantages are a single monthly subscription fee ranging from $15.95 to $19.95, the subscriber can rent unlimited amount of DVDs each month. With no late fees, Netflix’s model was built on the assumption...

Words: 1051 - Pages: 5

Free Essay

Netflix

...Netflix: Case Study Presented by Susmitha Annamaneni Overview  World’s largest online movie rental service  Founded by Reed Hastings  Established in 1998 and headquartered in Los Gatos, California  More than 90,000 DVD titles  Offers flat rate rental-by-mail to customers  Growing library of more than 5,000 choices that can be watched instantly on their PCs  Over 6.7 million subscribers  They have over 55 million discs and ship 1.6 million a day, on average Corporate History  Netflix was incorporated on August 29, 1997  Began operations on April 14, 1998  Initiated an initial public offering (IPO) on May 29, 2002 selling 5,500,000 shares of common stock at the price of US$15.00 per share  On June 14, 2002, it sold an additional 825,000 shares of common stock at the same price  Netflix posted its first profit during fiscal year 2003  Netflix mails about 190,000 discs per day to its 670,000 monthly subscribers.  Subscriber counts have increased from one million by the fourth quarter of 2002 to around 5.6 million at the end of the third quarter of 2006 How Netflix Works? Features  Instant Viewing  Queue  Browse  Movie Recommendations  Community Netflix Facts  Ratings  Rental Habits  Recommendations  Customer Satisfaction  Inventory  Volume  Environment Services  Flat-fee service  Various plans  Sells gift subscriptions  Instant Viewing  Sells used DVDs to its subscribers Pricing Levels 1 1 2 3 4 5 6 7 8 at-a-time...

Words: 418 - Pages: 2

Premium Essay

Netflix

...CH 2 Netflix vs. Blockbuster: Case Study #1 Explain Netflix’s marketing strategy. Can it sustain its competitive advantage? Why or why not? Netflix is a great company with a massive market share that allows it to reach millions of customers around the world. A key component to its continued success is sustainable competitive advantage. Netflix has a major lead over its competitors in device distribution allowing them to reach millions more potential customers than its competitors. According to the case study “the Nintendo Wii alone expands Netflix’s potential members by 30 million users”. By making their service accessible to the vast majority of consumers in the United States and abroad they are able to solidify competitive advantage. Netflix’s library of titles is far larger than its competitors. Blockbuster may be able boast a number of titles close to Netflix but lacks in original content ex. House of Cards and Orange is the New Black. By boasting a massive library of titles coupled with original content Netflix has a unique advantage over its competitors. This has the potential to change with Amazons announcement that they will be entering the streaming market with original content as well. I believe that the final competitive advantage that Netflix has over its competitors is the brand itself. You will often hear Netflix mentioned in popular culture whether that is in commercials for the award winning series House of Cards or when Justin Bieber raps “… at my crib watching...

Words: 702 - Pages: 3

Free Essay

Netflix

...Integrative Running Case Study: Netflix Mount Vernon Nazarene University MAN3083 Organizational Behavior BBAM03ON September 15, 2012 Abstract Within this case study, people will learn about the innovative start up of Netflix, and how the company changed the landscape of renting DVD’s. People will see how Netflix CEO Reed Hastings came up with the idea of ordering first run movies by internet and having them delivered right to people’s front door. Many changes to the business structure had to be made to fight off competitors and even joining forces with another. Because of its innovation to new ideas, and looking into the future, Netflix continues to be the leader in how people view their movies at home. Integrative Running Case Study: Netflix Part I In April of 1998, Netflix set out to do what no other DVD rental retailer has ever done; rent first run movies over the internet, receive them by mail, and then return them by mail (Griffin & Moorehead, 2012, p. 59). This all came about when Reed Hastings returned a late DVD to Blockbuster and paid a hefty penalty in the process (Griffin & Moorehead, 2012, p. 59). This set off a whole use of concepts, looking into the future, and making the necessary changes that set Netflix apart from its competitors. The one thing that Reed Hastings was able to do as CEO at Netflix, was look into the future and see that the straining economic conditions required a change in how the company reprimanded...

Words: 3431 - Pages: 14