Susmitha Annamaneni Netflix

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Susmitha Annamaneni Netflix

  1. 1. Netflix: Case Study Presented by Susmitha Annamaneni
  2. 2. 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
  3. 3. 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
  4. 4. How Netflix Works?
  5. 5. Features  Instant Viewing  Queue  Browse  Movie Recommendations  Community
  6. 6. Netflix Facts  Ratings  Rental Habits  Recommendations  Customer Satisfaction  Inventory  Volume  Environment
  7. 7. Services  Flat-fee service  Various plans  Sells gift subscriptions  Instant Viewing  Sells used DVDs to its subscribers
  8. 8. Pricing Levels 1 at-a-time (2 a month) - just $4.99 a month 1 at-a-time (Unlimited) - just $8.99 a month 2 at-a-time (Unlimited) - just $13.99 a month 3 at-a-time (Unlimited) - just $16.99 a month 4 at-a-time (Unlimited) - just $23.99 a month 5 at-a-time (Unlimited) - just $29.99 a month 6 at-a-time (Unlimited) - just $35.99 a month 7 at-a-time (Unlimited) - just $41.99 a month 8 at-a-time (Unlimited) - just $47.99 a month
  9. 9. Marketing Strategies  Pay-for-performance banner from yahoo, MSN, AOL  Search-engine  Third party download ads and logos  Best-buy to include flyers  Free trials  Shared revenue with studios
  10. 10. Competitors  Blockbuster, Inc.  Wal-Mart Stores, Inc.  Amazon. COM, Inc.
  11. 11. Netflix Growth
  12. 12. Achievements  Number #1 website in Spring 2005 , Spring 2006, and Spring 2007  Fall 2005 - Annual Customers First Award  January 2007 - Retail Innovator of the Year
  13. 13. References  http://www.netflix.com/MediaCenter?id=5379&hnjr =8#snapshot  http://en.wikipedia.org/wiki/Netflix  http://www.fundinguniverse.com/company- histories/Netflix-Inc-Company-History.html  http://ir.netflix.com/

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