Netflix: A Case Study

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Netflix: A Case Study

  1. 1. B Y : V I E WI N G I N N O V A T O R S NETFLIX: A CASE STUDY
  2. 2. IDEATION • Netflix was founded by Reed Hastings and Marc Randolph in 1997 • Netflix is the most popular Internet TV provider • Their services are available in 41 countries • They have a customer base of 44 million people • And they watch over 1 billion hours of content through Netflix every month.
  3. 3. LAUNCH • Launched on August 29, 1997 • Originally, Netflix was a company that rented DVD movies by mail. • Soon they began offering streaming services • In 2010, Canadians were able to access Netflix • Netflix’s international reach continues to grow
  4. 4. ORIGINAL STRATEGIES • Customers would receive DVDs in the mail • For $4 and a $2 postage fee the customer would receive a DVD for 7 days • The rental price would go down if more DVDs were rented • Customers could buy DVDs for up to 30% off their original price • They wanted to offer reviews of movies for customers • Movie preferences were generated for the customer based off previous rentals
  5. 5. WHY WAS NETFLIX STARTED? • Video rental stores did not have a large selection of DVDs in 1997 • Hastings was fed up with late fees • He paid a $40 late fee for Apollo 13
  6. 6. COMPETITION • In the beginning: • Video rental stores • Presently: • Cable providers • HBO • Hulu • YouTube
  7. 7. WHAT ARE NETFLIX'S PLANS FOR THE FUTURE? • According to Netflix’s website this is their long-term view: • “Over the coming decades and across the world, Internet TV will replace linear TV. Apps will replace channels, remote controls will disappear, and screens will proliferate. As Internet TV grows from millions to billions, Netflix is leading the way.”
  8. 8. REVENUE • Revenue stream: subscription service • Their recent addition of original content has increased their subscriber base, which in turn has created more revenue.
  9. 9. THE BOTTOM LINE • Netflix’s business plan has proven to be very successful • Netflix has introduced the fad of binge viewing • Created original content: • House of Cards • Orange is the New Black • Netflix is beginning to impact TV networks • TV networks are beginning to lose their customers’ interest • Netflix will continue to change the way we watch our favorite shows and movies.

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