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History 
Marc Randolph Reed Hastings 1997 
Pay $40 in 
overdue fines.
Americas, Caribbean and parts of Europe 
Produces Original Television Content
Internet TV is 
replacing linear TV 
As Internet TV grows from 
millions to billions, Netflix is 
leading the way around the 
world. 
Apps are replacing 
channels, remote controls 
are disappearing, and screens 
are proliferating.
Company Facts 
• World’s largest subscription service company. 
• IPO released in the year 2002. 
• 48.4 million subscribers(domestically 35.7 million subscribers in US alone) 
and counting. 
• Spending annually $350 million to maintain streaming services. 
• $1.27 billion in revenues. 
• ISP in US with best connectivity is “GOOGLE Fiber”. 
• Over 1 billion hours spent by its subscribers monthly.
Now, let’s talk about the case at 
hand!
Inventory Control 
Management 
Software
• Customer Service - Serve the dissatisfied 
customers of the competitor. 
• Eliminate the late penalty fees 
• Competitive pricing structures 
• Netflix’ early entrance to ‘online’ service has 
created a first-mover advantage in the form of 
established subscriber base and brand recognition.
Why use it’s Service? 
• It’s Legal! 
• Unlimited movies online. 
• Watch it any and everywhere ads-free. 
• First month Free trail. 
• Are you done watching movies, TV shows? 
Cancel the subscription anytime 
• No Viruses
Competition 
• HBO & Amazon Prime Instant Video 
• DVD watching 
• Video Games 
• Web browsing 
• Torrent
• Strategy is fairly easy to replicate. 
• DVD’s are likely to become obsolete 
• Switching costs are relatively low
Strengths 
• User Experience 
• Streaming Capability 
• Large Subscriber Base 
• Size of Content Library 
• Low cost products 
Weaknesses 
• Inability for Subscriber Base 
to Absorb Price Increases 
• Lack of Streaming 
Content/New Releases 
• DVD Segment
Opportunities 
• International Market 
Expansion 
• Creating and having 
Original Content 
• Ability to Raise Capital 
• Better Use of Advertising 
Threats 
• Content Prices 
• Competitive Environment 
• Influence of Google/ 
YouTube 
• Major Industry Shift to 
Content Streaming 
• Rivals: Amazon, Google, 
Hulu, Redbox, YouTube.
What? 
Why?
Political 
• Content Licensing and 
Copyrights 
• Censor board 
Social 
• Threat of Piracy- 
Opposing Subscription 
fee 
Economic 
• Unlimited Market size 
• Technology applicable 
for all countries 
Technological 
• DVD Technology 
becoming obsolete 
• Online Videos needs 
High Internet Speed
Recommendations 
• Release movies before competitors by 
collaborating with the various Studios. 
• Streaming of more webisodes.
Happy Netflixing

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Are you Addicted to Netflix?

  • 1.
  • 2.
  • 3. History Marc Randolph Reed Hastings 1997 Pay $40 in overdue fines.
  • 4. Americas, Caribbean and parts of Europe Produces Original Television Content
  • 5. Internet TV is replacing linear TV As Internet TV grows from millions to billions, Netflix is leading the way around the world. Apps are replacing channels, remote controls are disappearing, and screens are proliferating.
  • 6.
  • 7. Company Facts • World’s largest subscription service company. • IPO released in the year 2002. • 48.4 million subscribers(domestically 35.7 million subscribers in US alone) and counting. • Spending annually $350 million to maintain streaming services. • $1.27 billion in revenues. • ISP in US with best connectivity is “GOOGLE Fiber”. • Over 1 billion hours spent by its subscribers monthly.
  • 8. Now, let’s talk about the case at hand!
  • 9.
  • 11. • Customer Service - Serve the dissatisfied customers of the competitor. • Eliminate the late penalty fees • Competitive pricing structures • Netflix’ early entrance to ‘online’ service has created a first-mover advantage in the form of established subscriber base and brand recognition.
  • 12. Why use it’s Service? • It’s Legal! • Unlimited movies online. • Watch it any and everywhere ads-free. • First month Free trail. • Are you done watching movies, TV shows? Cancel the subscription anytime • No Viruses
  • 13. Competition • HBO & Amazon Prime Instant Video • DVD watching • Video Games • Web browsing • Torrent
  • 14. • Strategy is fairly easy to replicate. • DVD’s are likely to become obsolete • Switching costs are relatively low
  • 15.
  • 16. Strengths • User Experience • Streaming Capability • Large Subscriber Base • Size of Content Library • Low cost products Weaknesses • Inability for Subscriber Base to Absorb Price Increases • Lack of Streaming Content/New Releases • DVD Segment
  • 17. Opportunities • International Market Expansion • Creating and having Original Content • Ability to Raise Capital • Better Use of Advertising Threats • Content Prices • Competitive Environment • Influence of Google/ YouTube • Major Industry Shift to Content Streaming • Rivals: Amazon, Google, Hulu, Redbox, YouTube.
  • 19. Political • Content Licensing and Copyrights • Censor board Social • Threat of Piracy- Opposing Subscription fee Economic • Unlimited Market size • Technology applicable for all countries Technological • DVD Technology becoming obsolete • Online Videos needs High Internet Speed
  • 20. Recommendations • Release movies before competitors by collaborating with the various Studios. • Streaming of more webisodes.