Ships 1.9 million+ discs per day</li></li></ul><li>How it Works<br />DVDs by Mail:<br />Users sign up and create a list of movies, or a Queue<br />Netflix mails users movies from the Queue<br />Users watch the DVDs and keep them as long as they want<br />Users return viewed movies to get new ones from their Queue<br />Instant Streaming:<br />Users watch online using Mac or PC<br />Users watch on TV via Netflix-ready devices (Wii, PS3, etc.)<br />
The Industry<br /><ul><li>The movie rental industry is constantly having to adapt to new technology and social trends. Brick-and-mortar rental stores are overshadowed by online services, and now $1 rentals are being made available by kiosks all over the country.
The industry is not yet oversaturated, but the amount of competition is certainly growing.
In 2009, the industry grossed $6.5 billion in revenue, a 5% decrease from the year before.
Digital Distribution (download-to-own, video-on-demand, etc.) revenue grew by 27% to $617 million. </li></li></ul><li>Main Competitors<br /><ul><li>There are several smaller competitors like local rental businesses and illegal online streaming websites, but Netflix’s two main competitors are Blockbuster (in-store & rental-by-mail) and Redbox ($1 rental kiosks).</li></li></ul><li>Market Share Analysis<br />Share of Wallet Percentages<br />Netflix: $1.67 billion<br />Blockbuster: $1.08 billion<br />Redbox: $7.74 million<br />Other Online/Storefront: $2.85 billion<br />Other Kiosks: $1.3 million<br />Total Industry Revenue: $6.5 billion<br />
Marketing Goal<br />To introduce Netflix to a new niche market, the LGBT (Lesbian, Gay, Bi-Sexual, Transgendered) community, in order to increase subscriptions and decrease rate of churn.<br />
Resides just north of the city (Lincoln Park, Lakeview, Andersonville, etc.)
Likely to own a pet (71%) and likely treat the pet as part of the family (91%)
Likely to be politically active for causes such as LGBT rights, women’s rights, animal rights, and environmental issues.</li></li></ul><li>Consumer Profile- Activities<br /><ul><li>Surfing the Internet (176)
Reading Music, Technology, Fitness, and Entertainment Magazines (123)
Digital<br /><ul><li>Gay Ad Network and Lesbian Ad Network can geo-target viewers in Chicago by city and by zip code, focusing on Andersonville (60640) and Lakeview (60657)
Reaches over 6.6 million unique users on over 250 LGBT websites and social networking platforms
Reaches over 500,000 unique users on ‘apple-approved’ LGBT mobile apps
Buy 35 million impressions total </li></li></ul><li>Digital<br />Leaderboards, Skyscrapers, Rectangles, Mobile Ad Units,& Custom Placements<br />
Digital Plan<br />Total Digital Cost: $300,000<br />Buy roughly twice as many impressions with Gay Ad Network because not only does the demographic skew slightly male, but Gay Ad Network also includes some lesbian-targeted media. <br />
Community Events<br /><ul><li>Sponsor and participate in several different LGBT events in order to show support for the LGBT community
Community involvement not only shows a commitment to the LGBT community, but also to the Chicago community as a whole </li></li></ul><li>Community Events Plan<br />Total Community Events Cost: $57,500<br />
Community Events Added Value<br />On-Site Signage (banners, posters, street pole banners, etc.)<br />On-Site Visibility (branded tents, tables, parade floats, etc.)<br />:30 Spot on Screen before all films at Reeling Film Festival<br />Logo Placement (event posters, press releases, media buys, etc.)<br />Comcast Spots (2 million+ impressions)<br />Logo w/ Link on all interactive media buys<br />Radio Coverage (Jack FM, Kiss FM, Q101, 750AM)<br />Mentions on various social networking sites (facebook, myspace, twitter,etc.) <br />Announcer Mentions and Verbal Thanks at all sponsored events<br />Brand Ambassadors at all sponsored events<br />Full-page 4-color Ads in program guides<br />VIP passes to all sponsored ticketed events<br />Swag Bags from various sponsors<br />
Out of Home<br />Bus Shelters will go live in June & October with Wallscapes and Branded Buses going live in June. <br />June is National LGBT Pride Month, and there are several LGBT events throughout the month, many of which take place outdoors.<br />AIDS Run & Walk Chicago is in October, as is the promotion for Reeling Film Festival in November, so all ad copy should reflect support for those specific events.<br />
Out of Home Plan<br />Total Out of Home Cost: $152,353<br />
Television<br /><ul><li>Buy :30 spots on Logo (LGBT cable network) on a local level
Ads will run in Q3 & Q4 for a total of 30 weeks.
Ads will run during fringe and late fringe in winter months since that is when they are most likely to reach the target </li></li></ul><li>Television Plan<br />Total Television Cost: $197,925<br />
Sources<br />MRI<br />Scarborough<br />Nielsen<br />DART<br />Netflix.Com<br />Netflix Annual Report<br />Media Kits from Logo, Gay Ad Network, Boi Magazine, Red Eye, Time Out Chicago, Chicago Reader, & Facebook<br />