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CASE STUDY ON NETFLIX
INTRODUCTION :
• Netflix is a subscription-based streaming service that allows our members to watch TV shows and movies
without commercials on an internet-connected device.
• It is a production company based in Los Gatos, California. Founded on August 29, 1997 by Reed Hastings and
Marc Randolph in California.
• The top video streaming service in the world, started out initially by shipping DVDs to customers by mail. Now it
consumes more than 15 percent of the world's internet bandwidth and has 220.7 millions subscribers worldwide
IT’S JOURNEY :
• August 29, 1997: Introduced the concept of selling or renting DVDs by mail April 14,
• 1998: Netflix.com website was launched as the first DVD rental and sales site
• 2001: Netflix hits one million subscribers and continues to grow.
• 2002: Netflix opens regional warehouses, bringing overnight delivery in response to subscriber
complaints that it took too long to their DVDs.
• 2006: Netflix finally becomes profitable, generating more than $80 million. Subscribers rise to 6.3 million.
• 2010: Netflix changes its focus to streaming and introduces it to the United States
• 2012: Netflix starts making original shows. 2013: Netflix introduces user-profiles and rolls this feature out
to all Netflix subscribers in August.
• 2016: Netflix goes live in 130 countries simultaneously and adds local languages to its user interface,
subtitles, and dubbing.
• 2017: Netflix officially hits 100 million subscribers worldwide.
• 2021:Expansion into gaming
ISSUES FACED :
• The DVD market shrank by 4.5% in 2007, is the first time that year-over-year DVD sales had
fallen since the format was introduced 10 years earlier.
• Netflix planned to split its streaming business and its DVD rental business into two distinct
subscription packages: Netflix for streaming, and Qwikster for rentals.The decision was
immediately and powerfully unpopular with subscribers and investors alike. The move
reignited debate about the company’s future prospects, and some begin to question
Hastings’ leadership. The decision was seen as a cash-grab by many subscribers, as
customers would have to pay two separate subscription fees if they wanted to rent physical
DVDs and access Netflix’s streaming service. Analysts seized upon Netflix’s mistake as proof
of the company’s imminent downfall.
• By 2012, Netflix’s relationships with several studios and media publishers had become
strained. Seeking a bigger slice of the Netflix pie, Starz canceled its licensing agreement with
Netflix, which resulted in thousands of movies disappearing from Netflix’s streaming service
overnight. Licensing other networks’ content was becoming increasingly costly and complex
for Netflix – and so the company was forced to reinvent itself yet again.
ROLE OF DESIGN THINKING :
Netflix pivoted using design thinking to become anon-demand streaming site in response
to cabel’s competition and to its customer needs and expectations .
By Recognizing the design thinking to constantly hone its business model , Netflix
teams were encouraged to look for new opportunities to delight customer as a way to
drive better engagement and new revenue.
It landed on all of these innovations by using design thinking to empathize again and again
with its customers and by recognizing that the only way to remain relevant was to stay
grounded in exactly what each and every customer wants to experience when using the
service.
IDEAS AND TECHNIQUES USED :
• As per developers at Netflix, Python is used through the "full content lifecycle,” from security tools to
its recommendation algorithms, and its proprietary content distribution network (CDN) Open Connect
• Netflix continues to refine the subscriber experience by providing recommendations and suggestions
for future viewing using the Cinematch ranking algorithm, which helps personalize movie
suggestions. This, in turn, allows subscribers to create “queues” of titles to rent that are likely to be
of interest based on their rental history and ratings given to individual titles.
b
• Netflix comes at this from the opposite direction by focusing on how many movies (or shows) a
viewer has watched. Rather than optimizing individual shows to maximize the number of viewers,
Netflix instead leverages its vast media catalog to optimize for movies watched per individual user .
• This subtle yet crucial distinction has allowed Netflix to remain focused on how to better engage
viewers and iterate on its core “movies watched” metric through key product initiatives such as its
CineMatch recommendation algorithm.
• While many analysts doubted the viability of Netflix’s subscription-based model in 1999, this was key
to the company’s success because it positioned Netflix as a service where you could watch as much
as you want, as opposed to paying per rental. This was the real innovation behind much of Netflix’s
early growth.
• The CineMatch algorithm wasn’t just a ploy to increase customer retention. It marked the beginning
of a heightened focus on the experience of using Netflix .
RISKS & ACHIEVEMENTS:
• Netflix’s investment in its streaming platform would also allow the company to vertically integrate itself
into its own digital infrastructure when it began producing its own content years later—another great
investment in Netflix’s growth and demonstration of smartly building upon earlier successes.
• The more content Netflix produced, the more subscribers it attracted. This, in turn, resulted in higher
revenues, which meant more funding for original content in a virtuous cycle of constant growth.
• The period from 2007-2012 may have been the most tumultuous in Netflix’s history, but from 2013
onward, Netflix continued to defy expectations and reinvent the entertainment business. The first step?
Reinventing itself as a TV and movie studio.
• 2013 saw Netflix dive headfirst into the world of original programming with its high-profile political drama,
House of Cards. The show, which received rave reviews from critics and fans, marked a crucial turning
point in Netflix’s growth as a company.
• From 2016 onward, Netflix seemed practically unstoppable. The company’s programming received
numerous awards and accolades, including 54 nominations at the 68th Primetime Emmy Awards.
CONCLUSION :
• Technically, Netflix wasn’t the first online streaming video service. Netflix would, however,
become the first streaming success story.
• To encourage innovation Netflix built an environment that allows failure and motivates
employees to try out new ideas. They’re given a high degree of independence.
• • In addition Netflix created constant feedback loops for employees
• • Netflix began to create its own content, original movies and series, which changed the
entertainment landscape. Recognizing that customers were hungry for better
DONE BY :
B. SAATHVIK

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Design Thinking NETFLIX using all techniques.pptx

  • 1. CASE STUDY ON NETFLIX
  • 2. INTRODUCTION : • Netflix is a subscription-based streaming service that allows our members to watch TV shows and movies without commercials on an internet-connected device. • It is a production company based in Los Gatos, California. Founded on August 29, 1997 by Reed Hastings and Marc Randolph in California. • The top video streaming service in the world, started out initially by shipping DVDs to customers by mail. Now it consumes more than 15 percent of the world's internet bandwidth and has 220.7 millions subscribers worldwide
  • 3. IT’S JOURNEY : • August 29, 1997: Introduced the concept of selling or renting DVDs by mail April 14, • 1998: Netflix.com website was launched as the first DVD rental and sales site • 2001: Netflix hits one million subscribers and continues to grow. • 2002: Netflix opens regional warehouses, bringing overnight delivery in response to subscriber complaints that it took too long to their DVDs. • 2006: Netflix finally becomes profitable, generating more than $80 million. Subscribers rise to 6.3 million. • 2010: Netflix changes its focus to streaming and introduces it to the United States • 2012: Netflix starts making original shows. 2013: Netflix introduces user-profiles and rolls this feature out to all Netflix subscribers in August. • 2016: Netflix goes live in 130 countries simultaneously and adds local languages to its user interface, subtitles, and dubbing. • 2017: Netflix officially hits 100 million subscribers worldwide. • 2021:Expansion into gaming
  • 4. ISSUES FACED : • The DVD market shrank by 4.5% in 2007, is the first time that year-over-year DVD sales had fallen since the format was introduced 10 years earlier. • Netflix planned to split its streaming business and its DVD rental business into two distinct subscription packages: Netflix for streaming, and Qwikster for rentals.The decision was immediately and powerfully unpopular with subscribers and investors alike. The move reignited debate about the company’s future prospects, and some begin to question Hastings’ leadership. The decision was seen as a cash-grab by many subscribers, as customers would have to pay two separate subscription fees if they wanted to rent physical DVDs and access Netflix’s streaming service. Analysts seized upon Netflix’s mistake as proof of the company’s imminent downfall. • By 2012, Netflix’s relationships with several studios and media publishers had become strained. Seeking a bigger slice of the Netflix pie, Starz canceled its licensing agreement with Netflix, which resulted in thousands of movies disappearing from Netflix’s streaming service overnight. Licensing other networks’ content was becoming increasingly costly and complex for Netflix – and so the company was forced to reinvent itself yet again.
  • 5. ROLE OF DESIGN THINKING : Netflix pivoted using design thinking to become anon-demand streaming site in response to cabel’s competition and to its customer needs and expectations . By Recognizing the design thinking to constantly hone its business model , Netflix teams were encouraged to look for new opportunities to delight customer as a way to drive better engagement and new revenue. It landed on all of these innovations by using design thinking to empathize again and again with its customers and by recognizing that the only way to remain relevant was to stay grounded in exactly what each and every customer wants to experience when using the service.
  • 6. IDEAS AND TECHNIQUES USED : • As per developers at Netflix, Python is used through the "full content lifecycle,” from security tools to its recommendation algorithms, and its proprietary content distribution network (CDN) Open Connect • Netflix continues to refine the subscriber experience by providing recommendations and suggestions for future viewing using the Cinematch ranking algorithm, which helps personalize movie suggestions. This, in turn, allows subscribers to create “queues” of titles to rent that are likely to be of interest based on their rental history and ratings given to individual titles. b • Netflix comes at this from the opposite direction by focusing on how many movies (or shows) a viewer has watched. Rather than optimizing individual shows to maximize the number of viewers, Netflix instead leverages its vast media catalog to optimize for movies watched per individual user . • This subtle yet crucial distinction has allowed Netflix to remain focused on how to better engage viewers and iterate on its core “movies watched” metric through key product initiatives such as its CineMatch recommendation algorithm. • While many analysts doubted the viability of Netflix’s subscription-based model in 1999, this was key to the company’s success because it positioned Netflix as a service where you could watch as much as you want, as opposed to paying per rental. This was the real innovation behind much of Netflix’s early growth. • The CineMatch algorithm wasn’t just a ploy to increase customer retention. It marked the beginning of a heightened focus on the experience of using Netflix .
  • 7. RISKS & ACHIEVEMENTS: • Netflix’s investment in its streaming platform would also allow the company to vertically integrate itself into its own digital infrastructure when it began producing its own content years later—another great investment in Netflix’s growth and demonstration of smartly building upon earlier successes. • The more content Netflix produced, the more subscribers it attracted. This, in turn, resulted in higher revenues, which meant more funding for original content in a virtuous cycle of constant growth. • The period from 2007-2012 may have been the most tumultuous in Netflix’s history, but from 2013 onward, Netflix continued to defy expectations and reinvent the entertainment business. The first step? Reinventing itself as a TV and movie studio. • 2013 saw Netflix dive headfirst into the world of original programming with its high-profile political drama, House of Cards. The show, which received rave reviews from critics and fans, marked a crucial turning point in Netflix’s growth as a company. • From 2016 onward, Netflix seemed practically unstoppable. The company’s programming received numerous awards and accolades, including 54 nominations at the 68th Primetime Emmy Awards.
  • 8. CONCLUSION : • Technically, Netflix wasn’t the first online streaming video service. Netflix would, however, become the first streaming success story. • To encourage innovation Netflix built an environment that allows failure and motivates employees to try out new ideas. They’re given a high degree of independence. • • In addition Netflix created constant feedback loops for employees • • Netflix began to create its own content, original movies and series, which changed the entertainment landscape. Recognizing that customers were hungry for better
  • 9. DONE BY : B. SAATHVIK