1. Khahary Whitehead Page 1
Provide the entertainment sector the company/division is in. *Hint* This isn't a
trick question, this is as obvious as you think it is. (1-3 sentences)
Netflix is a company that started renting out DVDs by mail in April of 1998 and has evolved ever
since. Their Domestic streaming falls within the sector of Consumer Cyclical. The Consumer
Cyclical sector is when if the economy is growing then the company does good and if the
economy is then the company starts to diminish.
Does the company/division make a product or do they provide a
service? Combination of both? (3-4 sentences) Be specific
The Domestic streaming of Netflix provides a service for people in the United States to be able
to watch some of there most favorite shows and movies. Netflix is always innovating and
experimenting new ways to create their app better for the consumer. They drop new content
on a monthly basis from domestic and international media from the past and present. They will
also cater to the consumer by creating things such as a “top picks list” based on the movies and
tv shows you watch a lot.
Where do they sell their products and/or services? Online? Physical location?
Combination of both? (3-4 sentences) Be specific
Since the Domestic streaming of Netflix is online their services are also sold online as well. You
have to first download the app to even create the subscription to be able to use the Domestic
streaming service. After that once you create the subscription to keep it you must pay various
fees depending on your subscription you have via debit/credit card or even gift card.
Describe their target market (paying customers)? Refer back to the 5
segmentations we discussed in class. Geographics, Demographics,
Psychographics, Benefits & Usage Rate ("Everyone" isn't a correct answer no
matter what the company is and listing all ages and ethnicities is also saying
"everyone".) (4-5 sentences)
When the Domestic streaming of Netflix originally first came out their demographic of target
audience was male and female between the ages of 17-60. As of late that target audience has
become women between the ages of 35-44. I believe that is become women around these ages
don’t usually have the time to go out and watch movies because they are full time working
women with kids to take care of. Netflix as well targets the low to middle income class which is
the average between the women of those ages.
How does your company advertise? Explain in detail all the ways they
advertise AND include at least two screenshot examples in your assignment.
Make sure it is clear what type of advertisement it is and for. (4-5 sentences)
2. Page 2
Netflix is a very big company and well known so they don’t really have to do to many
advertisements as much as other companies. Although of course every now and then you will
see a commercial for them on tv their advertising approach is usually more directed to the
consumer. As of today, they are usually more intimate with their customers and send direct
advertisements to them as a result. If you are a subscriber of Netflix, you are more likely to
receive an email from Netflix regarding new content as well as an ad on your various social
media accounts.
3. Page 3
Describe the costs you think your company incurs on a daily basis. (4-5
sentences)
The Domestic streaming services of Netflix are very demanding and need a lot of time as well as
money. On a day to day basis they have to spend money on various avenues such as production
and marketing just to name a few. They have a lot of movies streaming on the app that are not
originals and they also have need to have the money to pay for that content. Netflix has always
been innovative, and they have and will continue to do that is by research and development
which is something they have always invested in to get where they are.
4. Page 4
Resources
Business model
https://www.businessmodelsinc.com/exponential-business-model/netflix/
Company Sector
https://finance.yahoo.com/quote/NFLX/profile?p=NFLX
Service or product?
https://www.denverpost.com/2017/10/31/netflix-tax-loveland-colorado-court/
How to pay?
https://help.netflix.com/en/node/41049
Target Audience
http://michaelwessel.weebly.com/uploads/6/8/1/0/6810798/netflix.pdf
http://allthingsd.com/20120224/hey-ladies-guess-who-loves-web-video/
https://www.cnbc.com/2017/09/12/heres-how-much-money-american-women-earn-at-every-
age.html
Netflix Costs
https://www.feedough.com/how-does-netflix-make-money/
