Netflix is about freedom of on-demand viewing across any screen at any time, and providing fantastic exclusive content. Through a lean approach, Netflix has achieved a global, high-quality brand with an original value proposition including exclusive content, convenience across devices, and a relatively low cost. Netflix is the online streaming leader with over 50 million subscribers in over 40 countries. Future growth opportunities include expanding internationally and increasing original in-house programming. Competitors include Amazon Prime, HBO, and Hulu, and Netflix must continue innovating to maintain its strong market position.
Over the course of the semester I worked on a group project on Netflix. Taking a look into Netflix's history and how they compete against their competitors.
Over the course of the semester I worked on a group project on Netflix. Taking a look into Netflix's history and how they compete against their competitors.
This presentation briefly analyses the characteristics and timeline of the diffusion of Netflix by assessing Rogers' five diffusion characteristics. for different steps in their company history. It analyses the surrounding of this innovation via PESTEL-analysis and gives brief hints on how to intensify the diffusion of Netflix further globally.
Researched Netflix's existing market and recommended strategies for them to develop.
Conducted SWOT analysis, product and market analysis
Based on their market growth ad financial overview, developed marketing strategies
Developed BCG Matrix and understood Porter 5 forces to estimate the competitive strategy
It’s hard to understand how tech giant business models work. This teardown is the best guess following Netflix as a public company and listening to stories in the public sites. Let us know if you agree, disagree, or want to tell us a story about Netflix’s amazing moves.
This presentation briefly analyses the characteristics and timeline of the diffusion of Netflix by assessing Rogers' five diffusion characteristics. for different steps in their company history. It analyses the surrounding of this innovation via PESTEL-analysis and gives brief hints on how to intensify the diffusion of Netflix further globally.
Researched Netflix's existing market and recommended strategies for them to develop.
Conducted SWOT analysis, product and market analysis
Based on their market growth ad financial overview, developed marketing strategies
Developed BCG Matrix and understood Porter 5 forces to estimate the competitive strategy
It’s hard to understand how tech giant business models work. This teardown is the best guess following Netflix as a public company and listening to stories in the public sites. Let us know if you agree, disagree, or want to tell us a story about Netflix’s amazing moves.
A presentation built around viewing Netflix from the perspective of a CMO. None of the images used are owned by the group. Thank you to Jane Ortolani, Kyle Kasharian, Joe Salituro, Will Leonard, and Joe Papandrea for making it a great semester!
A comparison of the Netflix and HBO business models, strategy and future intent. Some financial and strategy projections. Note: this was completed before Time Inc broke out HBO financials in their 10k.
February 2014.
Vision and Strategy - Epiphanies of a Netflix leaderJosh Evans
New managers are reactive tacticians by default. Product managers drive requirements and due dates. Technical migrations, operational emergencies, and support requests form a maelstrom of distraction. It’s easy to become overwhelmed with these challenges and a common reaction is to double down on speed and efficiency. These are important tactical skills to develop but leadership (vs management) is a whole different game. Leaders are proactive, seeking out opportunities to get ahead of challenges or enable new possibilities.
Leaders think broadly and systemically - enabling them to make the right call in situations where the solution is non-obvious. Where do we apply constrained resources to maximum effect? Which infrastructure investments will yield the most benefit? How do we carve out a path that leads to transformative change?
In this session we’ll explore the concepts of vision and strategy - tools that business and technical leaders alike leverage to make tough decisions and smart bets that lead to breakout success. Using Netflix as a case study we’ll explore how these tools were used to drive bold initiatives resulting in significant business growth and competitive barriers. In addition, we’ll delve into the role of technical strategy in turning business-oriented visions into reality. Attendees will develop a deeper understanding of the formulation, implementation, and impact of vision and strategy. This is a bootstrap for those who want to make the leap from manager to leader - a journey that can last a lifetime.
Public Relations Campaign for Netflix: PR Assignment
Marketing Final Project Team 11
1.
2. Who We Are
“We are about the freedom of on-demand and the fun of indulgent viewing.
We are about the flexibility of any screen any time.
We are about fantastic content that is only available on Netflix. “
Reed Hastings, Netflix CEO
Brand Value
Through a Lean Approach they achieve a Global and High-Quality Brand
Value Proposition
• Originality
• Convenience/usability
Device/Platform accessibility
Large variety of movie selection and series
• Price: unlimited streaming for a relatively low cost
Global Market Share
• Online Streaming leader.
• Over 40 countries with
more than 50 million
subscribers
3. Who We Are
Online
Streaming
Disc by
Mail
• USA Market: 37.2 M subscribers
• International Market:
• Canada - 3 M
• Latin America - 310,000
• Europe - 20% of Netflix’s total market
• Future market - Asia
• Operating systems - IOS, Android and Windows
• Smart TVs
• Media boxes - Amazon FireTv, Apple Tv
• $7.99/ month - one dvd per time
• $11.99/ month - 2 dvd per time
• $7.99/month - unlimited streaming
+
through dynamically continuous
innovations (since 2014)
• $11.99/ month - unlimited streaming
up to 4 screens
Marketing Mix
Price Place
Product
Core
Product
Augmented
Product
Actual
Product
• Access to video content
• Unlimited streaming
• Several users at the same time
• Monthly fee subscription
• No late or shipping fees
• Movie recommendation/customization
• Exclusive content
• Online streaming
• Disc rental by mail
Promotion
• Direct Response Marketing
• Emotive Marketing
• Word of Mouth
• First-mover-advantage/Blue Ocean
• Functional Area Strategy
• In-house Content
4. Who Our Customers Are
Traditional Disc
Delivery
• Older people
• Willing to wait to meet their expectations
• They expect a rich viewing experience
• Niche market
Online
Streaming
• Younger/ Internet savvy
• Value easy/immediate access
• Portability and accessibility of the product
Geographical Segmentation
Regional (US, Europe)
Demographic Segmentation
Age (18-59)
Psychographic Segmentation
Through the likes/interests specific genres can be
recommended
Behavioral Segmentation
Occasional (special occasion, holidays, seasonal)
User status (potential users, frequent user, first
time users)
Micro
Segmentation
“Each campaign is meant to target
and appeal to the specified tastes,
needs, wants, and desires of the
small groups and individuals that
make up the microsegment"
5. Who Our Competitors Are
Traditional Disc
Delivery
Indirect
Competitors
Pros Cons
Vudu Access to new movies as soon
they are released on DVD
Instead of $12 person Cinema
you can get have everyone for
$4.99 minimum
Movie to movie basis is
very expensive when
compared to monthly fees
models
Target Ticket Similar to Vudu
Itunes Similiar to Vudu
GooglePlay Similar to Vudu
Amazon Instant
Video
Similiar to Vudu
HBO GO* Access to High quality HBO It requires cable connection
• Redbox - >50%
Market share
• BlockBuster - Filled for
bankruptcy
(Netflix lost more than 50%
of its customers since
2012)
All of these compete in
a slightly different
market once it is paid
per movie instead of
monthly
Online
Streaming
6. Who Our Competitors Are
Direct Competitors Pricing Market Share
Amazon Prime
instant video
Both compete in a
monthly fee basis
Both produce
original content
99$/year 2%
“HBO Linear” HBO is known by
the quality of its
content
NA
Hulu $7.99 10%
Netflix has 89% of the Online Streaming
Market
“…industry experts favor Amazon, citing the e-commerce giant’s scope, scale, and
ability to crush competitors.”
”…Amazon Prime Instant Video marks a turn in the online streaming tide, a turn that
could eventually be deadly for Netflix in the long run.”
Forbes, 2014
“Starting back in 2011 we started saying that HBO would be our primary long-term
competitor, particularly for content.”
Reed Haastings, Oct 2014, variety.com
7. Strenghts Weaknessess Opportunities Threats
Brand Recognition
• The Netflix brand is very well
known - best Brand equity of
the Year 2014 for video
streaming subscription
• Fastest rate of brand equity
increase
(Harris Pol EquiTrend Brand of
the Year 2014)
Accessibility
• Netflix is available on nearly all
internet enabled devices
Original Content
• It allows customization
• Increase customer acquisition
to high quality content
Cost of Content
• High cost of mass
licensing packages and the
in-house original content
production forced Netflix to
have large amount of debt
DVD Subscribers
• More than 50% decrease
since 2012 - 15M to 6 M
Raising
Subscription
Prices
• Customer satisfaction
highly influenced by rising
prices as proved in 2011
International Expansion
• The ability to create original content
will enhance international growth.
Original In-House
Programming
• With many house-hold entertainment
devices connected to the internet,
there is an opening for internet tv
and Netflix’s exclusive in-house
content poises the company for that
demand.
Word-of-Mouth
Campaigns
• It is an effective method for customer
acquisition - one of the main
marketing goals of Netflix
ISP’s
• Netflix accounts for about 30% of
daily internet traffic. With net
neutrality laws struck down, Netflix
may have to assume more debt or cut
content.
Competition (Amazon
Prime, HBO,Hulu)
• Both Amazon and HBO produce their
own content and Hulu compete with
Netflix on the online streaming
platform market.
Content Price
• Lack of leverage makes the price of
licensing and renewing those license
agreements remain to be the largest
threat to the company’s ability to
operate at a profit.
SWOT Analysis
9. UNLESS
Keep on the In-House Production
• Keeps people subscribing for longer periods
• Allows Netflix to raise its prices in the future
• Hedge against rising content licensing costs - (700% increase in
2 years)
Start New Promotion Strategies
• International Expansion (Europe, Asia) - Product and Communications
Adaptation
• Direct Response Marketing - based on specific content - using social media
• Allow sharing content on social media platforms
• Uniform features globally
• Enable access to all content in local languages (audio/subtitles)
10. UNLESS
We Change the Vision of the Product
Netflix is not an add-on anymore… or
extension
It is a Substitute
If you have Netflix you don’t need anything
else
Imagine a platform where you have
• “IMDB’s top250” movies + best series
• The best Documentaries according to YOUR preferences
• The best News that YOU are looking for
• The imaginary link between YOUR culture and the rest of the
world
Just for $8/month
11. Special Thanks to Professor Nick
Team 11
Marketing Final Project
Joao Simoes
Faateh Dhillon
Roshni Rajput
Maria Latronico
Yu Yang
Rohit Gite