FLOW OF COMPETITON
Round 1
• Case study Name : Netflix
• Case submission closes on August 25, 2019 by 11.59 PM
Round 2
• Case Study Name : Video Case Study
• Case submission closes on August 29, 2019 by 11.59 PM
Round 3
• Case Study Name : HBR Case Study
• Case submission closes on September 2, 2019 by 11.59
PM
Round 4
• Case Study Name : HBR Case Study
• Case submission closes on September 5, 2019 by 11.59
PM
CASE STUDY – FORMAT /
INSTRUCTION
• Case Study to be submitted in a PPT format with
Maximum 5 slides excluding these two slides.
• Font Name- Calibri (Body) | Font Size >= 12
• Plagiarism (Cut, Copy, Paste), or using of content directly
from Google or any other unrealisable source will lead to
disqualification of the team
• Every round shall have elimination
Vision : Becoming the best global entertainment distribution service, licensing entertainment content around the world,
creating markets that are accessible to film makers, and helping content creators around the world to find a global audience.
Founded on 29th August 1997
Location Scotts, California
Headquarters Los Gatos, California U.S.
Founders Marc Randolph
Reed Hastings
Products Streaming media and video on demand
online, DVD on rental by mail
Services Film production, Film distribution,
television products
Revenue US $ 15.794 billion
Net Income US $ 1.211 billion
Users 154 million worldwide (total)
148 million (paid)
• Netflix utilised the far reaching scope of internet – based
commerce and an advanced inventory control system.
• Netflix took advantage of the loophole of the bricks-and-
mortar company of those days ’Blockbuster’ which provided
fixed time rentals and would charge $40 fee for late return
which lead to customer dissatisfaction
• Hence, Netflix decided to introduce a new system and focus
on customer satisfaction.
• It built its status on the business model of flat-fee unlimited
rentals without due dates, late fees, shipping or handling fees
or per title rental fees.
• The strategy used was to reduce overall cost by utilising
proprietary inventory management software, providing large
variety of movies, easy way to choose movies, an aggressive
marketing to attract subscribers and build strong awareness
of the brand, offering their services at a lower price than any
of the competitors, like Blockbuster, could offer.
Analysis
Strengths
• Customized subscription for unlimited rentals
• Easy unsubscription process
• Movie recommendations based on customer’s preferences
Weakness
• At times, Netflix require more time to update their library
• Content differs by the location
Q1. In exchange for greater amounts of streaming content, Netflix has begun making deals
with major movie studios that delay the release of DVDs and blue-rays by 28 days. This gives
bricks-and-mortar stores, e-commerce sites, and cable and satellite companies a window
of time when they carry movies that Netflix cannot. Are these types of deals beneficial to Netflix?
Yes, these types of deals are beneficial to Netflix because:
1. The idea behind these delays is to enable them to maximize the retail sales of new releases
2. The strategy behind adding a larger delay before new releases are available for rental or streaming also
maximizes the revenue
3. This delay of 28 days can also be earned from theatrical release and video-on-demand offerings.
4. Netflix works on new content while others have the same content which would be available on various
servers or on rent by other competitors.
Q2 Should Netflix charge for streaming content or continue to provide it without limit as part of its physical
media offerings?
Yes, Netflix should charge for streaming content because:
• The DVD users and Online subscription should be given different services according to the plan opted for.
• Netflix wants to kill the DVD service, as if they offer both services under one charge the customers base
with get manipulated and will use both the services which is not beneficial for the company.
• With the immense availability of internet people will opt less of DVD’s and will help company to reduce its
storage and handling costs.
• Also better national/international content is easily available whenever required without any extra efforts.
• No pop ups or advertisement between the shows/movies. In short Netflix is commercials free which means
it gives uninterrupted shows and movies to watch.
• Netflix invests billion of dollars to create its own interesting movies and shows like Orange is the new black,
House of cards, Narcos, Scared Games etc. which gives an additional content and attracts new subscribers.
• They always come up with unique shows/movies which has a strong message which cannot be shown on
television as it for 16 or 18+ individuals.
• Wide choices of shows/movies available and a unique “show recommendation” feature makes it apart
from others
Q3. What are some of the potential problems Netflix will face in the near future as the company
continues it reliance on DVD and Blu-ray offerings by mail.
• While Netflix’s streaming service offers a large (but ultimately dwindling) collection of movies and
shows, there is much more available on physical disc. Its massive physical disc’s library requires
Netflix to shed money on storage spaces and handling.
• With the increasing prices of petroleum, the costs of logistics will increase, leading to lesser profits.
• The DVDs which are not in demand, take up the storage space and need to be discarded. Netflix’s
DVD rental business has over 2.7 million active user base (as of mid-2019).
• Netflix does not seem to be thrilled with this idea. CCO Ted Sarandos claims that they are not trying
to save the DVD rental business and in 2011, Netflix tried to spin-off their DVD service into a
completely new entity called Qwikster. The move did not go over so well and Netflix abandoned
Qwikster idea in less than a month. However, the DVD plans brought about $53 million in the past
quarter.
• Netflix distribution channel has gone from 50 stores during its peak to 33 stores as on 2015, and
eventually to 17 stores as of today in the US.
• According to the reports, Netflix lost 190K DVD subscribers every quarter for the past two years. If
this trend continues, Netflix will likely cut ties with the DVD side of things by 2022. Netflix wants the
DVD rental service to die naturally
• With the immense availability of internet, Netflix wishes to shift its DVD rental user base completely
over to its online streaming content model.

Case Study- Netflix.pptx

  • 2.
    FLOW OF COMPETITON Round1 • Case study Name : Netflix • Case submission closes on August 25, 2019 by 11.59 PM Round 2 • Case Study Name : Video Case Study • Case submission closes on August 29, 2019 by 11.59 PM Round 3 • Case Study Name : HBR Case Study • Case submission closes on September 2, 2019 by 11.59 PM Round 4 • Case Study Name : HBR Case Study • Case submission closes on September 5, 2019 by 11.59 PM CASE STUDY – FORMAT / INSTRUCTION • Case Study to be submitted in a PPT format with Maximum 5 slides excluding these two slides. • Font Name- Calibri (Body) | Font Size >= 12 • Plagiarism (Cut, Copy, Paste), or using of content directly from Google or any other unrealisable source will lead to disqualification of the team • Every round shall have elimination
  • 3.
    Vision : Becomingthe best global entertainment distribution service, licensing entertainment content around the world, creating markets that are accessible to film makers, and helping content creators around the world to find a global audience. Founded on 29th August 1997 Location Scotts, California Headquarters Los Gatos, California U.S. Founders Marc Randolph Reed Hastings Products Streaming media and video on demand online, DVD on rental by mail Services Film production, Film distribution, television products Revenue US $ 15.794 billion Net Income US $ 1.211 billion Users 154 million worldwide (total) 148 million (paid) • Netflix utilised the far reaching scope of internet – based commerce and an advanced inventory control system. • Netflix took advantage of the loophole of the bricks-and- mortar company of those days ’Blockbuster’ which provided fixed time rentals and would charge $40 fee for late return which lead to customer dissatisfaction • Hence, Netflix decided to introduce a new system and focus on customer satisfaction. • It built its status on the business model of flat-fee unlimited rentals without due dates, late fees, shipping or handling fees or per title rental fees. • The strategy used was to reduce overall cost by utilising proprietary inventory management software, providing large variety of movies, easy way to choose movies, an aggressive marketing to attract subscribers and build strong awareness of the brand, offering their services at a lower price than any of the competitors, like Blockbuster, could offer.
  • 4.
    Analysis Strengths • Customized subscriptionfor unlimited rentals • Easy unsubscription process • Movie recommendations based on customer’s preferences Weakness • At times, Netflix require more time to update their library • Content differs by the location
  • 5.
    Q1. In exchangefor greater amounts of streaming content, Netflix has begun making deals with major movie studios that delay the release of DVDs and blue-rays by 28 days. This gives bricks-and-mortar stores, e-commerce sites, and cable and satellite companies a window of time when they carry movies that Netflix cannot. Are these types of deals beneficial to Netflix? Yes, these types of deals are beneficial to Netflix because: 1. The idea behind these delays is to enable them to maximize the retail sales of new releases 2. The strategy behind adding a larger delay before new releases are available for rental or streaming also maximizes the revenue 3. This delay of 28 days can also be earned from theatrical release and video-on-demand offerings. 4. Netflix works on new content while others have the same content which would be available on various servers or on rent by other competitors.
  • 6.
    Q2 Should Netflixcharge for streaming content or continue to provide it without limit as part of its physical media offerings? Yes, Netflix should charge for streaming content because: • The DVD users and Online subscription should be given different services according to the plan opted for. • Netflix wants to kill the DVD service, as if they offer both services under one charge the customers base with get manipulated and will use both the services which is not beneficial for the company. • With the immense availability of internet people will opt less of DVD’s and will help company to reduce its storage and handling costs. • Also better national/international content is easily available whenever required without any extra efforts. • No pop ups or advertisement between the shows/movies. In short Netflix is commercials free which means it gives uninterrupted shows and movies to watch. • Netflix invests billion of dollars to create its own interesting movies and shows like Orange is the new black, House of cards, Narcos, Scared Games etc. which gives an additional content and attracts new subscribers. • They always come up with unique shows/movies which has a strong message which cannot be shown on television as it for 16 or 18+ individuals. • Wide choices of shows/movies available and a unique “show recommendation” feature makes it apart from others
  • 7.
    Q3. What aresome of the potential problems Netflix will face in the near future as the company continues it reliance on DVD and Blu-ray offerings by mail. • While Netflix’s streaming service offers a large (but ultimately dwindling) collection of movies and shows, there is much more available on physical disc. Its massive physical disc’s library requires Netflix to shed money on storage spaces and handling. • With the increasing prices of petroleum, the costs of logistics will increase, leading to lesser profits. • The DVDs which are not in demand, take up the storage space and need to be discarded. Netflix’s DVD rental business has over 2.7 million active user base (as of mid-2019). • Netflix does not seem to be thrilled with this idea. CCO Ted Sarandos claims that they are not trying to save the DVD rental business and in 2011, Netflix tried to spin-off their DVD service into a completely new entity called Qwikster. The move did not go over so well and Netflix abandoned Qwikster idea in less than a month. However, the DVD plans brought about $53 million in the past quarter. • Netflix distribution channel has gone from 50 stores during its peak to 33 stores as on 2015, and eventually to 17 stores as of today in the US. • According to the reports, Netflix lost 190K DVD subscribers every quarter for the past two years. If this trend continues, Netflix will likely cut ties with the DVD side of things by 2022. Netflix wants the DVD rental service to die naturally • With the immense availability of internet, Netflix wishes to shift its DVD rental user base completely over to its online streaming content model.