Netflix

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Netflix

  1. 2. Netflix: Gangming Liang (Leon) (555970) Academic Communication Skills Suzy Bausch Spring 2010 The largest online movie rental service
  2. 3. Preview <ul><li>Online Movie Rental Industry </li></ul><ul><li>Introduction to Netflix </li></ul><ul><li>Netflix’s Products & Services </li></ul><ul><li>The Customer Is King </li></ul>
  3. 4. Online Movie Rental Industry <ul><li>Competitors: </li></ul><ul><li>Blockbuster / Flexplay / Youtube </li></ul><ul><li>Key factors: </li></ul><ul><li>Advanced technology </li></ul><ul><li>Digital distribution system </li></ul><ul><li>Trends: </li></ul><ul><li>No-return rental services </li></ul><ul><li>High quality </li></ul><ul><li>Convenience </li></ul>Source: Flexplay.com Associatedcontent.com
  4. 5. Introduction to Netflix <ul><li>Founded: </li></ul><ul><li>In 1997, in California by </li></ul><ul><li>Reed Hastings & Marc Randolph. </li></ul><ul><li>Public company: </li></ul><ul><li>In 2002 (Ticker symbol: NFLX) </li></ul><ul><li>Successful growth strategies: </li></ul><ul><ul><ul><li>Number of customer & Net income </li></ul></ul></ul><ul><ul><ul><li>High quality & Constant improvement </li></ul></ul></ul><ul><ul><ul><li>Internet delivery: Mailing & Streaming </li></ul></ul></ul>Source: Netflix.com FundingUniverse.com
  5. 6. Netflix’s Products & Services <ul><li>Unlimited movies, TV, and DVDs </li></ul><ul><li>High speed delivery </li></ul><ul><li>No due dates or late fees </li></ul><ul><li>Revenue: </li></ul><ul><li>$700 million in 2005  $1,300 million in 2008 </li></ul><ul><li>Earnings per share: </li></ul><ul><li>$0.60 in 2005  $1.40 in 2008 </li></ul>Source:Netflix.com
  6. 7. The Customer Is King <ul><li>No.1 in customer </li></ul><ul><li>satisfaction: </li></ul><ul><li>90% of respondents </li></ul><ul><li>recommend Netflix </li></ul><ul><li>Idea: </li></ul><ul><li>Netflix gets </li></ul><ul><li>customers’ $ by </li></ul><ul><li>giving them </li></ul><ul><li>entertainment </li></ul>Source: Netflix.com
  7. 9. Potential Problems for ’s Cell Phone Streaming Service <ul><li>Gangming Liang (Leon) (0555970) </li></ul><ul><li>Academic Communication Skills </li></ul><ul><li>Suzy Bausch </li></ul><ul><li>Spring 2010 </li></ul>
  8. 10. Content Overview <ul><li>Netflix’s Core Products & Services </li></ul><ul><li>Benefits of Cell Phone Streaming </li></ul><ul><li>Problems of Cell Phone Streaming </li></ul><ul><li>Teens– Demand for Cell Phone Streaming </li></ul><ul><li>Cell Phone Streaming- Potential Market </li></ul><ul><li>iPad – Possible Solution </li></ul>
  9. 11. Netflix’s Core Products & Services Source: Netflix.com Datamonitor.com <ul><li>Largest Movies & TV Episodes Provider </li></ul><ul><li>Internet-Based Subscription Model </li></ul><ul><li>No Due Date, No Late Fees </li></ul>
  10. 12. Benefits of Cell Phone Streaming Source: Voicendata.com Betanews.com <ul><li>Extend Customer Base: </li></ul><ul><li>Handheld </li></ul><ul><li>Touch Screen </li></ul><ul><li>Increase Brand Awareness: Word of Mouth </li></ul><ul><li>Save Postage Cost </li></ul><ul><li>Compete with Traditional Movie Rental & Streaming Services </li></ul>
  11. 13. Problems of Cell Phones Streaming <ul><li>Source: Voicendata.com </li></ul><ul><li>Sound & Picture Quality </li></ul><ul><li>Internet Signal </li></ul><ul><li>Devices & Software for Receiving video: </li></ul><ul><li>Smartphone </li></ul><ul><li>Windows Phone 7 System </li></ul><ul><li>Operation Skills </li></ul>
  12. 14. Teens– Demand for Cell Phone Streaming <ul><li>Source: Impactlab.com </li></ul>
  13. 15. Cell Phone Streaming- Potential Market Source: Netflix.com Impactlab.com Voicendata.com Betanews.com Datamonitor.com Cell Phone Streaming Opportunity Threats Customer Base Revenue Competition Operation Skills Internet Signal Devices & Software Sounds & Pictures
  14. 16. iPad – Possible Solution Source: Engadget.com
  15. 18. Should Netflix expand to France? <ul><li>Gangming Liang (Leon) (555970) </li></ul><ul><li>Academic Communication Skills </li></ul><ul><li>Suzy Bausch </li></ul><ul><li>Spring 2010 </li></ul>
  16. 19. Outline <ul><li>Netflix’s and Glowria’s Model </li></ul><ul><li>Growth of Netflix in U.S. </li></ul><ul><li>French Movies & Entertainment Market Value </li></ul><ul><li>Drawbacks of French Market </li></ul><ul><li>Netflix’s Future </li></ul><ul><li>Analysis of New Market Expansion </li></ul>
  17. 20. Netflix ’ s and Glowria ’ s Model Source: Netflix.com Growlia.fr company Renting Streaming, downloading watching Free shipping Monthly fee and no late Fee Netflix DVD, Blu-ray Streaming PC, Box, Blu-ray players PS3 Xbox, Wii Mail in 24 hrs $8.99 Glowria DVD, Blu-ray Downloading PC Mail in 48-72 hrs $10.93
  18. 21. Growth of Netflix in U.S. <ul><li>Source: Netflix.com </li></ul>120 100 80 60 40 20 0 $ Million Net Income ($Million ) 6 Years of Netflix Net Income
  19. 22. French Movies & Entertainment Market Value <ul><li>Source: Datamonitor.com </li></ul>Billion Billion
  20. 23. Drawbacks of French Market <ul><li>Competitors: Blockbuster </li></ul><ul><li>Glowria </li></ul><ul><li>Corporate Tax Rate: 33.33% </li></ul><ul><li>Hidden Barriers : </li></ul><ul><li>Regulations of Authority </li></ul><ul><li>Competition Authority </li></ul><ul><li>Netflix’s Low Price </li></ul>Source: Datamonitor.com Euromonitor.com EIU.com
  21. 24. Netflix’s Future <ul><li>Netflix: Good Condition </li></ul><ul><li>France: Not A Good Market </li></ul><ul><li>(Market Value, </li></ul><ul><li>Saturation, </li></ul><ul><li>Tax Rate) </li></ul><ul><li>Future: US </li></ul><ul><li>Foreign countries </li></ul><ul><li>(Market Research and evaluation) </li></ul>Source: Datamonitor.com EIU.com Euromonitor.com
  22. 25. Analysis of New Market Expansion <ul><li>Company </li></ul><ul><li>New Market </li></ul><ul><li>Source: www.qed.princeton.edu </li></ul><ul><li> EIU.com </li></ul>

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