The document summarizes the history and evolution of the movie rental industry from the 1980s to today. It discusses how movie rentals boomed in the 1980s and 1990s with the rise of retail video stores like Blockbuster. In the early 2000s, increased broadband internet allowed digital movie rentals and streaming to emerge as popular alternatives to physical rentals. Major players like Netflix transitioned to online streaming models, growing their subscriber base globally while competitors like Blockbuster declined.
This document analyzes the strategy of Netflix using various frameworks. It provides an overview of Netflix, including its founding in 1997 as a DVD rental service and transition to an online streaming platform. A PEST analysis identifies political, economic, social and technological factors. A five forces analysis examines the intensity of rivalry, threat of new entrants, bargaining powers of suppliers and customers, and threat of substitutes. A SWOT analysis outlines Netflix's strengths, weaknesses, opportunities, and threats. The document also includes a market analysis and identifies problems around high competition and recommendations around content creation and live sports streaming.
Case study over current position of Netflix and where it is heading. AFI framework was used to provide insight into new viable strategies with recommendations on how Netflix can maintain a competitive advantage in the future.
Netflix’s unique DVD rental service has revolutionized the industry. They successfully took the best of traditional conventions (like physical media, the U.S. Postal Service) and mixed them with new world internet-conventions. They have also effectively managed to discourage competition from both more established businesses and new entrants. The future growth of Netflix as it expands into streaming media, poses challenges in legal, infrastructure/technology, and through additional costs. In order to remain competitive, it is imperative that Netflix partner with companies with global reach to overcome these challenges. This presentation was part of an MBA class assignment to audit and industry in the the technology sector. The presentation has multiple authors listed on the title page. If you would like copies of the executive summary, complete S.W.O.T. analysis, and/or the transcript of the presentation please PRIVATE MESSAGE ME and I will email it to you.
Netflix failure & marketing strategyAshutosh Sahu
1. Netflix presented their marketing strategy which focused on developing high quality original content to differentiate themselves from competitors.
2. They analyzed their strengths in brand and technology against weaknesses like high debt and easy replication. Opportunities in international growth were noted alongside threats from increasing competition.
3. Netflix's strategy to transition from DVD rentals to streaming was disrupted by the poorly executed Qwikster plan in 2011. However, they recovered by listening to customers and committing to original content development, which helped subscriber growth and stock price recovery.
This document summarizes Netflix's business strategies. It includes a PEST analysis noting political issues like piracy and content licensing. A five forces analysis finds high threats from substitutes and new entrants. Netflix's core problem is the high threat from all five competitive forces, especially the bargaining power of suppliers and buyers. Netflix's strategy is to pursue market penetration through excellent service and low prices, focus on creating its own content, increase innovation spending, use pricing cautiously, transition fully to streaming, partner to optimize its platform, and maintain high availability distribution.
This document provides a case study on Netflix that analyzes how Netflix has grown to become the most successful online streaming company through its use of various digital economies. It discusses Netflix's history from a DVD rental service to an online streaming platform. It then analyzes how Netflix leverages the digital, free, attention, subscription, and network economies to drive its business model and sustain ongoing success. Key points include how Netflix adapts to technological changes, uses free trials and data collection, produces original content, offers access through subscriptions over ownership, and leverages its large user network and data.
Netflix was founded in 1997 by Reed Hastings and Marc Randolph to create an online DVD rental service. It launched in 1998 offering 900 movie titles for rental by mail. By 2013, Netflix had grown to over 36 million subscribers who streamed 2 billion hours of content per month. Netflix's mission is to become the leading global streaming service through expanding its library of exclusive original content available on any internet-connected device.
Netflix is an American entertainment company that provides streaming media and video on demand. It was founded in 1997 and has since expanded globally to be available in over 190 countries. Netflix uses a subscription-based business model with monthly fees for access to its large library of content. It has been increasing its original content production in recent years. While Netflix has been very successful in growing its subscriber base internationally, its business model relies heavily on content licensing costs which impact profitability.
This document analyzes the strategy of Netflix using various frameworks. It provides an overview of Netflix, including its founding in 1997 as a DVD rental service and transition to an online streaming platform. A PEST analysis identifies political, economic, social and technological factors. A five forces analysis examines the intensity of rivalry, threat of new entrants, bargaining powers of suppliers and customers, and threat of substitutes. A SWOT analysis outlines Netflix's strengths, weaknesses, opportunities, and threats. The document also includes a market analysis and identifies problems around high competition and recommendations around content creation and live sports streaming.
Case study over current position of Netflix and where it is heading. AFI framework was used to provide insight into new viable strategies with recommendations on how Netflix can maintain a competitive advantage in the future.
Netflix’s unique DVD rental service has revolutionized the industry. They successfully took the best of traditional conventions (like physical media, the U.S. Postal Service) and mixed them with new world internet-conventions. They have also effectively managed to discourage competition from both more established businesses and new entrants. The future growth of Netflix as it expands into streaming media, poses challenges in legal, infrastructure/technology, and through additional costs. In order to remain competitive, it is imperative that Netflix partner with companies with global reach to overcome these challenges. This presentation was part of an MBA class assignment to audit and industry in the the technology sector. The presentation has multiple authors listed on the title page. If you would like copies of the executive summary, complete S.W.O.T. analysis, and/or the transcript of the presentation please PRIVATE MESSAGE ME and I will email it to you.
Netflix failure & marketing strategyAshutosh Sahu
1. Netflix presented their marketing strategy which focused on developing high quality original content to differentiate themselves from competitors.
2. They analyzed their strengths in brand and technology against weaknesses like high debt and easy replication. Opportunities in international growth were noted alongside threats from increasing competition.
3. Netflix's strategy to transition from DVD rentals to streaming was disrupted by the poorly executed Qwikster plan in 2011. However, they recovered by listening to customers and committing to original content development, which helped subscriber growth and stock price recovery.
This document summarizes Netflix's business strategies. It includes a PEST analysis noting political issues like piracy and content licensing. A five forces analysis finds high threats from substitutes and new entrants. Netflix's core problem is the high threat from all five competitive forces, especially the bargaining power of suppliers and buyers. Netflix's strategy is to pursue market penetration through excellent service and low prices, focus on creating its own content, increase innovation spending, use pricing cautiously, transition fully to streaming, partner to optimize its platform, and maintain high availability distribution.
This document provides a case study on Netflix that analyzes how Netflix has grown to become the most successful online streaming company through its use of various digital economies. It discusses Netflix's history from a DVD rental service to an online streaming platform. It then analyzes how Netflix leverages the digital, free, attention, subscription, and network economies to drive its business model and sustain ongoing success. Key points include how Netflix adapts to technological changes, uses free trials and data collection, produces original content, offers access through subscriptions over ownership, and leverages its large user network and data.
Netflix was founded in 1997 by Reed Hastings and Marc Randolph to create an online DVD rental service. It launched in 1998 offering 900 movie titles for rental by mail. By 2013, Netflix had grown to over 36 million subscribers who streamed 2 billion hours of content per month. Netflix's mission is to become the leading global streaming service through expanding its library of exclusive original content available on any internet-connected device.
Netflix is an American entertainment company that provides streaming media and video on demand. It was founded in 1997 and has since expanded globally to be available in over 190 countries. Netflix uses a subscription-based business model with monthly fees for access to its large library of content. It has been increasing its original content production in recent years. While Netflix has been very successful in growing its subscriber base internationally, its business model relies heavily on content licensing costs which impact profitability.
The document outlines the mission, organization, strategic analysis, and strategic formulation of Netflix. It discusses Netflix's core competencies in online DVD rental and streaming, its founding and growth to over 10 million subscribers, and its strategic focus on leveraging its online DVD leadership while innovating its streaming offerings. The conclusion emphasizes the importance of Netflix continuing to grow its customer base in online DVD rental while innovating with new home entertainment technologies.
Netflix business marketpresentation_economicsGraysonMeeks
The document provides an overview of Netflix's marketing plan. It discusses Netflix's target demographics, history since its founding in 1997, current competitors and their subscription numbers, Netflix's revenue streams through various streaming and DVD/Blu-Ray plans. It analyzes factors that affect Netflix's demand and supply, and notes Netflix expects 24% annual growth.
Netflix belongs to the over-the-top (OTT) media industry and was founded in 1997 to offer online movie rentals before launching a subscription streaming service. It has since expanded globally and produced many original TV shows and movies. The OTT industry in India is growing rapidly but highly competitive, with Hotstar being the largest platform as of 2018. Netflix aims to differentiate itself through an extensive library and original content while addressing challenges like high data usage and regional sensitivity.
Netflix's business model provides on-demand streaming media and DVD rentals by mail. It was founded in 1997 and launched in 1998, initially offering DVD rentals by mail. In 2007, Netflix introduced online streaming. Its business model relies on monthly subscription fees of $17.99 per month, which allows unlimited rentals without due dates or late fees. Netflix partners with studios, electronics companies, and the USPS to support its delivery and streaming capabilities. Its personalized recommendations and large catalog contribute to its competitive advantage over traditional rental stores.
Netflix - Globalization and business expansion case studyBenoît Prentout
Case study I did in 2017 for my business school's english class.
English is not my mothertongue, hence the simplicity of these slides.
I have no affiliation with Netflix whatsoever. Any material created by Netflix is used here on educative purpose only.
A comprehensive report evaluating Netflix, Inc. viability, stability, and profitability for future investment. The analysis provides an assessment of the firm's strategy, accounting, financial, prospective, and comes up with a buy/sell recommendation.
Netflix is seeing slowing subscriber growth despite increased spending on new content. The document discusses Netflix's business model, history, competitors like Disney+ and HBO Max, and financial information. It also notes that Netflix recently raised prices for its US subscription plans and provides a variety of streaming options and personalized recommendations to users.
Netflix is the world's leading internet television network with over 57 million subscribers in nearly 50 countries. It allows members to watch TV shows and movies instantly on any internet-connected device without commercials. Originally starting as a DVD-by-mail service in 1997, Netflix expanded into streaming and began producing original content like House of Cards in 2011. The company aims to become the best global entertainment distribution service through licensing content and helping creators find audiences worldwide. It utilizes social media, commercials, and word-of-mouth for marketing.
Netflix was founded in 1997 by Reed Hastings and is headquartered in Los Gatos, CA. It began as a DVD-by-mail service with no late fees and good customer service. Netflix has grown significantly and now has over 14 million subscribers who it serves through streaming and DVDs. The company faces competition from services like Redbox but has been able to grow through its large library of content and focus on customer experience.
Netflix was founded in 1997 offering DVD rentals by mail with little competition. In 1999, it launched a no late fee policy and a subscription model allowing unlimited rentals and keeping 4 DVDs at a time. In 2001, it announced plans to create a video-on-demand business in addition to its DVD rental services. Its strategies included attracting subscribers by bundling Netflix coupons with new DVD players, personalized recommendations on its website, and developing an open connect system to locate servers near internet service providers for faster streaming.
The Netflix Marketing Plan Power PointShawn McNail
This document provides a marketing plan for Netflix. It begins with background on Netflix's founding in 1997 and subscription-based business model. The mission and goals are to grow the streaming business globally while improving the customer experience. A SWOT analysis identifies strengths like brand recognition but also weaknesses like privacy issues. The main competitors are identified as Hulu, Amazon Prime, and YouTube. Target markets are college students and families seeking affordable entertainment. The positioning focuses on affordability, accessibility, and variety. The implementation plan starts on January 1st and will measure success through sales data. Promotional efforts include a Super Bowl ad to reach 111 million viewers followed by ongoing social media and traditional advertising.
An Informative Presentation on Netflix.
Includes
1. History
2. Several business plans of Netflix over the time of its inception to the present scenario
3. S.W.O.T analysis
4. Present Challenges.
Netflix started as a DVD rental service in 1997 and transformed into a leading streaming platform. In 2011, Netflix took a major gamble by splitting its DVD and streaming services into separate plans priced at $8/month each. This risked losing subscribers but positioned the company to focus on online streaming. Netflix was successful due to its personalized recommendations, growing library of content through negotiations with studios, and innovation in streaming technology and integration with TVs.
Netflix Inc. Marketing, Strategy & Planning
This report examines Netflix Inc.'s marketing, strategy and planning from the perspective of a marketing manager. Investigating marketing findings is outlined, relevant strategies aligned for competitive advantages in planning the firm's operation for market entry in the UK.
Netflix has seen declining stock prices and consumer confidence following changes to its pricing and structure. To recover, it must reestablish itself as the dominant internet streaming company. A SWOT analysis finds Netflix has strengths like brand identity and content library but also weaknesses like high churn rate. It faces threats from competitors but also opportunities in growing markets. An analysis of alternatives recommends diversifying into music streaming to leverage Netflix's strengths and gain new customers.
This document provides an overview of Netflix including its business model, strategy, and financials. It discusses Netflix's mission to offer high quality streaming and DVD services to customers. It outlines Netflix's subscription-based business model and pricing, as well as its strategy of acquiring new content and expanding internationally. The document also analyzes Netflix using PEST, Five Forces, and SWOT frameworks. Financially, it notes Netflix's high subscriber growth and cash balances, but also cost pressures from competition and expansion. Overall it finds potential opportunities for Netflix through continued global expansion and acquisition.
Netflix is the largest online movie rental service. It was founded in 1997 in California and went public in 2002. Netflix offers unlimited movies, TV shows, and DVD rentals delivered quickly to customers' homes with no due dates or late fees. The company has experienced successful growth strategies and increasing customer numbers and net income. Netflix aims to provide the best customer experience and satisfaction in the online movie rental industry.
Netflix was co-founded by Reed Hastings and Marc Randolph after Hastings was charged a $40 late fee by Blockbuster. Netflix began by shipping DVDs to members. Their goal was to be the "Amazon.com of everything" for streaming. Netflix now offers several subscription plans for streaming movies and TV shows, as well as a DVD rental service. They have expanded internationally and now operate in over 190 countries. Financial statements show Netflix's revenue and assets growing rapidly as their subscriber base increases each year. Netflix management is noted for its radical transparency and constant feedback culture. Employees are given independence and freedom to be creative in their work.
Netflix began as a DVD rental service in 1999 and introduced streaming in 2007, growing to over 40 million subscribers worldwide. It revolutionized consumer media consumption by offering instant, on-demand streaming of movies and TV shows without due dates or late fees. This represented a major shift away from traditional physical rental models and influenced consumer decision making towards increased on-demand viewing. Netflix's strong streaming presence, accounting for over 30% of internet bandwidth, threatened competitors like Blockbuster and transformed the consumer media market. To maintain its leadership, Netflix must continue expanding its catalog of original and licensed content across platforms and regions.
[The Impact of the Internet on the Video Rental Industry.docxdanielfoster65629
[The Impact of the Internet on the Video Rental
Industry: Blockbuster vs. Netflix]
2
Table of Contents
INTRODUCTION 3
VIDEO RENTAL INDUSTRY ANALYSIS 5
BLOCKBUSTER BUSINESS DESCRIPTION 7
BLOCKBUSTER BUSINESS MODEL 7
BLOCKBUSTER HISTORY 8
BLOCKBUSTER SWOT ANALYSIS 10
NETFLIX BUSINESS DESCRIPTION 14
NETFLIX BUSINESS MODEL 14
NETFLIX HISTORY 15
COMPETING ONLINE SERVICES 16
FINANCIAL ANALYSIS 18
THE FUTURE OF THE VIDEO RENTAL INDUSTRY 24
CONCLUSION 25
REFERENCES 26
3
The Impact of the Internet on Video
Rentals: Blockbuster vs. Netflix
Could Brick and Mortar Video Rental Stores be a thing of the past? The Internet has
challenged the way movies are rented in the United States. Blockbuster, one of the
biggest video rental companies, has completely restructured its operations to meet the
market demands due to the emergence of the Internet and companies like Netflix. The
first impact the online video rental industry made on Blockbuster was making late fees
obsolete. Blockbuster enacted a “no late fees” policy in 2004 to remain competitive in the
industry. The company gave up about $450 million in late fee revenue and $250 million
to $300 million in operating income the first year the policy was enacted (Halkias). This
is not counting the increased number of new releases the company needed to purchase to
meet customer demand due to the policy. Under the "no late fees" program, a customer
was charged the purchase price for a movie if it was kept longer than 14 days. The charge
was dropped if it was returned within 30 days, and the customer was then charged a $1.25
restocking fee (Halkias). Blockbuster then created Blockbuster Total Access in attempts
to compete in the online video rental market. With Blockbuster Total Access, customers
would pay a subscription fee of $24.99 a month and rent up to 2 movies online at a time.
4
Netflix, the online DVD rental pioneer, sold a similar service for $21.99 a month.
Company CEO, John Antioco, said the overall online subscriber market is about 3
million to 5 million households, and he believes Blockbuster can attract a 30 percent
market share (Halkias). Blockbuster spent between 70 and 90 million dollars on the Total
Access program in hopes of reinventing itself. Program costs and continued decline in
rentals caused the company’s 2004 earnings to fall about 10 percent below the $1.48 a
share earned in 2003 (Halkias). The company will have to continue developing in this $8
billion dollar a year industry as it continues to change. Within another four years,
customers are expected to spend about $1.7 billion getting movies from cable to watch at
their convenience (Cohen). The video rental industry is also moving to legal downloading
sites such as CinemaNow Inc. Founded in 1999, the service lets people download movies
as a rental with a viewing window, or buy the film outright and burn it on a di.
The document outlines the mission, organization, strategic analysis, and strategic formulation of Netflix. It discusses Netflix's core competencies in online DVD rental and streaming, its founding and growth to over 10 million subscribers, and its strategic focus on leveraging its online DVD leadership while innovating its streaming offerings. The conclusion emphasizes the importance of Netflix continuing to grow its customer base in online DVD rental while innovating with new home entertainment technologies.
Netflix business marketpresentation_economicsGraysonMeeks
The document provides an overview of Netflix's marketing plan. It discusses Netflix's target demographics, history since its founding in 1997, current competitors and their subscription numbers, Netflix's revenue streams through various streaming and DVD/Blu-Ray plans. It analyzes factors that affect Netflix's demand and supply, and notes Netflix expects 24% annual growth.
Netflix belongs to the over-the-top (OTT) media industry and was founded in 1997 to offer online movie rentals before launching a subscription streaming service. It has since expanded globally and produced many original TV shows and movies. The OTT industry in India is growing rapidly but highly competitive, with Hotstar being the largest platform as of 2018. Netflix aims to differentiate itself through an extensive library and original content while addressing challenges like high data usage and regional sensitivity.
Netflix's business model provides on-demand streaming media and DVD rentals by mail. It was founded in 1997 and launched in 1998, initially offering DVD rentals by mail. In 2007, Netflix introduced online streaming. Its business model relies on monthly subscription fees of $17.99 per month, which allows unlimited rentals without due dates or late fees. Netflix partners with studios, electronics companies, and the USPS to support its delivery and streaming capabilities. Its personalized recommendations and large catalog contribute to its competitive advantage over traditional rental stores.
Netflix - Globalization and business expansion case studyBenoît Prentout
Case study I did in 2017 for my business school's english class.
English is not my mothertongue, hence the simplicity of these slides.
I have no affiliation with Netflix whatsoever. Any material created by Netflix is used here on educative purpose only.
A comprehensive report evaluating Netflix, Inc. viability, stability, and profitability for future investment. The analysis provides an assessment of the firm's strategy, accounting, financial, prospective, and comes up with a buy/sell recommendation.
Netflix is seeing slowing subscriber growth despite increased spending on new content. The document discusses Netflix's business model, history, competitors like Disney+ and HBO Max, and financial information. It also notes that Netflix recently raised prices for its US subscription plans and provides a variety of streaming options and personalized recommendations to users.
Netflix is the world's leading internet television network with over 57 million subscribers in nearly 50 countries. It allows members to watch TV shows and movies instantly on any internet-connected device without commercials. Originally starting as a DVD-by-mail service in 1997, Netflix expanded into streaming and began producing original content like House of Cards in 2011. The company aims to become the best global entertainment distribution service through licensing content and helping creators find audiences worldwide. It utilizes social media, commercials, and word-of-mouth for marketing.
Netflix was founded in 1997 by Reed Hastings and is headquartered in Los Gatos, CA. It began as a DVD-by-mail service with no late fees and good customer service. Netflix has grown significantly and now has over 14 million subscribers who it serves through streaming and DVDs. The company faces competition from services like Redbox but has been able to grow through its large library of content and focus on customer experience.
Netflix was founded in 1997 offering DVD rentals by mail with little competition. In 1999, it launched a no late fee policy and a subscription model allowing unlimited rentals and keeping 4 DVDs at a time. In 2001, it announced plans to create a video-on-demand business in addition to its DVD rental services. Its strategies included attracting subscribers by bundling Netflix coupons with new DVD players, personalized recommendations on its website, and developing an open connect system to locate servers near internet service providers for faster streaming.
The Netflix Marketing Plan Power PointShawn McNail
This document provides a marketing plan for Netflix. It begins with background on Netflix's founding in 1997 and subscription-based business model. The mission and goals are to grow the streaming business globally while improving the customer experience. A SWOT analysis identifies strengths like brand recognition but also weaknesses like privacy issues. The main competitors are identified as Hulu, Amazon Prime, and YouTube. Target markets are college students and families seeking affordable entertainment. The positioning focuses on affordability, accessibility, and variety. The implementation plan starts on January 1st and will measure success through sales data. Promotional efforts include a Super Bowl ad to reach 111 million viewers followed by ongoing social media and traditional advertising.
An Informative Presentation on Netflix.
Includes
1. History
2. Several business plans of Netflix over the time of its inception to the present scenario
3. S.W.O.T analysis
4. Present Challenges.
Netflix started as a DVD rental service in 1997 and transformed into a leading streaming platform. In 2011, Netflix took a major gamble by splitting its DVD and streaming services into separate plans priced at $8/month each. This risked losing subscribers but positioned the company to focus on online streaming. Netflix was successful due to its personalized recommendations, growing library of content through negotiations with studios, and innovation in streaming technology and integration with TVs.
Netflix Inc. Marketing, Strategy & Planning
This report examines Netflix Inc.'s marketing, strategy and planning from the perspective of a marketing manager. Investigating marketing findings is outlined, relevant strategies aligned for competitive advantages in planning the firm's operation for market entry in the UK.
Netflix has seen declining stock prices and consumer confidence following changes to its pricing and structure. To recover, it must reestablish itself as the dominant internet streaming company. A SWOT analysis finds Netflix has strengths like brand identity and content library but also weaknesses like high churn rate. It faces threats from competitors but also opportunities in growing markets. An analysis of alternatives recommends diversifying into music streaming to leverage Netflix's strengths and gain new customers.
This document provides an overview of Netflix including its business model, strategy, and financials. It discusses Netflix's mission to offer high quality streaming and DVD services to customers. It outlines Netflix's subscription-based business model and pricing, as well as its strategy of acquiring new content and expanding internationally. The document also analyzes Netflix using PEST, Five Forces, and SWOT frameworks. Financially, it notes Netflix's high subscriber growth and cash balances, but also cost pressures from competition and expansion. Overall it finds potential opportunities for Netflix through continued global expansion and acquisition.
Netflix is the largest online movie rental service. It was founded in 1997 in California and went public in 2002. Netflix offers unlimited movies, TV shows, and DVD rentals delivered quickly to customers' homes with no due dates or late fees. The company has experienced successful growth strategies and increasing customer numbers and net income. Netflix aims to provide the best customer experience and satisfaction in the online movie rental industry.
Netflix was co-founded by Reed Hastings and Marc Randolph after Hastings was charged a $40 late fee by Blockbuster. Netflix began by shipping DVDs to members. Their goal was to be the "Amazon.com of everything" for streaming. Netflix now offers several subscription plans for streaming movies and TV shows, as well as a DVD rental service. They have expanded internationally and now operate in over 190 countries. Financial statements show Netflix's revenue and assets growing rapidly as their subscriber base increases each year. Netflix management is noted for its radical transparency and constant feedback culture. Employees are given independence and freedom to be creative in their work.
Netflix began as a DVD rental service in 1999 and introduced streaming in 2007, growing to over 40 million subscribers worldwide. It revolutionized consumer media consumption by offering instant, on-demand streaming of movies and TV shows without due dates or late fees. This represented a major shift away from traditional physical rental models and influenced consumer decision making towards increased on-demand viewing. Netflix's strong streaming presence, accounting for over 30% of internet bandwidth, threatened competitors like Blockbuster and transformed the consumer media market. To maintain its leadership, Netflix must continue expanding its catalog of original and licensed content across platforms and regions.
[The Impact of the Internet on the Video Rental Industry.docxdanielfoster65629
[The Impact of the Internet on the Video Rental
Industry: Blockbuster vs. Netflix]
2
Table of Contents
INTRODUCTION 3
VIDEO RENTAL INDUSTRY ANALYSIS 5
BLOCKBUSTER BUSINESS DESCRIPTION 7
BLOCKBUSTER BUSINESS MODEL 7
BLOCKBUSTER HISTORY 8
BLOCKBUSTER SWOT ANALYSIS 10
NETFLIX BUSINESS DESCRIPTION 14
NETFLIX BUSINESS MODEL 14
NETFLIX HISTORY 15
COMPETING ONLINE SERVICES 16
FINANCIAL ANALYSIS 18
THE FUTURE OF THE VIDEO RENTAL INDUSTRY 24
CONCLUSION 25
REFERENCES 26
3
The Impact of the Internet on Video
Rentals: Blockbuster vs. Netflix
Could Brick and Mortar Video Rental Stores be a thing of the past? The Internet has
challenged the way movies are rented in the United States. Blockbuster, one of the
biggest video rental companies, has completely restructured its operations to meet the
market demands due to the emergence of the Internet and companies like Netflix. The
first impact the online video rental industry made on Blockbuster was making late fees
obsolete. Blockbuster enacted a “no late fees” policy in 2004 to remain competitive in the
industry. The company gave up about $450 million in late fee revenue and $250 million
to $300 million in operating income the first year the policy was enacted (Halkias). This
is not counting the increased number of new releases the company needed to purchase to
meet customer demand due to the policy. Under the "no late fees" program, a customer
was charged the purchase price for a movie if it was kept longer than 14 days. The charge
was dropped if it was returned within 30 days, and the customer was then charged a $1.25
restocking fee (Halkias). Blockbuster then created Blockbuster Total Access in attempts
to compete in the online video rental market. With Blockbuster Total Access, customers
would pay a subscription fee of $24.99 a month and rent up to 2 movies online at a time.
4
Netflix, the online DVD rental pioneer, sold a similar service for $21.99 a month.
Company CEO, John Antioco, said the overall online subscriber market is about 3
million to 5 million households, and he believes Blockbuster can attract a 30 percent
market share (Halkias). Blockbuster spent between 70 and 90 million dollars on the Total
Access program in hopes of reinventing itself. Program costs and continued decline in
rentals caused the company’s 2004 earnings to fall about 10 percent below the $1.48 a
share earned in 2003 (Halkias). The company will have to continue developing in this $8
billion dollar a year industry as it continues to change. Within another four years,
customers are expected to spend about $1.7 billion getting movies from cable to watch at
their convenience (Cohen). The video rental industry is also moving to legal downloading
sites such as CinemaNow Inc. Founded in 1999, the service lets people download movies
as a rental with a viewing window, or buy the film outright and burn it on a di.
Netflix is a streaming and rental company that began in 1997, offering DVD rentals by mail. It now has over 50 million streaming subscribers globally and a large streaming library available on all major devices. Netflix disrupted the market by introducing streaming while also offering DVD rentals. It has faced challenges like raising prices and separating streaming and DVD plans but has grown through expanding internationally and producing original content like House of Cards. While competitors like Amazon and Hulu are growing, Netflix has the largest library and remains the market leader in online video streaming.
This document discusses the online movie rental business and competition in the video streaming market. It provides details on Netflix's business model and history, including milestones like their billionth DVD delivery. It also outlines competitors in the streaming and rental space like Hulu, Redbox, cable/satellite providers, and premium channels. The document considers factors that could impact Netflix's ability to succeed in this competitive landscape, such as content availability and pricing/bundling approaches from other players.
Current Consumer Issues - Audiences and Institutionsmissgillies
The document discusses different ways for consumers to access movies, including through cinema, streaming services like Netflix and LoveFilm, television, and illegal means. It then provides information on the popularity of movie piracy, strategies from the film industry to curb piracy, and the growth of legal streaming services. Finally, it presents case studies on alternative distribution strategies for films that have utilized early digital releases, video on demand, or simultaneous multi-platform releases.
1. The document discusses different ways people consume movies like cinema, streaming services, DVDs, and discusses piracy.
2. It provides statistics on movie piracy and discusses how the film industry is trying to adapt to new forms of digital distribution and piracy.
3. Newer films are being released simultaneously in theaters and on digital platforms like VOD and streaming, indicating studios see trends in media consumption shifting away from traditional release windows.
Netflix was founded in 1997 as a DVD rental company and later expanded into streaming services. It is now a multi-billion dollar company and the leading subscription video on demand service, though it faces competition from Amazon Prime Video, Hulu, HBO Now, cable and satellite providers, DVDs, YouTube, movie theaters, and other streaming options. The video streaming market has low barriers to entry but high competitive intensity as customers are not strongly brand loyal and easily switch between similar services.
Netflix currently has the largest number of streaming video users but relies heavily on content deals with other studios. Apple has a strong transactional video on demand business through iTunes but relies on Netflix for subscription content. Comcast has a large subscriber base and could leverage its broadband network to direct more traffic to its own content. Xbox has a strong interface and technology but relies on content from other distributors.
Netflix's business model has evolved over time from DVD rentals by mail to streaming. It now makes most of its revenue from monthly subscription plans that allow unlimited streaming. Netflix acquires and licenses content from partners and produces original shows and movies. It has over 200 million subscribers globally and is highly profitable. However, it operates with negative cash flow due to upfront costs of content licensing and production. Netflix continues to adapt its model by expanding globally and investing heavily in new content.
Netflix began in 1997 as an online movie rental service without late fees. It launched a DVD-by-mail subscription service in 1999. In 2007, Netflix introduced online streaming, allowing subscribers to watch movies and TV shows via the internet. While Netflix grew rapidly, competitors emerged offering similar streaming services. Netflix's strategy focused on acquiring a wide selection of content, easy-to-use technology, marketing, and expanding streaming internationally while transitioning U.S. subscribers from DVD-by-mail. This strategic approach helped Netflix become the leading internet television network.
This document provides an overview and analysis of the streaming media landscape. It begins with biographical information about the author Paul Young and then outlines an agenda covering topics like streaming architecture, popular streaming services, the TV subscription market, a SWOT analysis of streaming, subscriptions services, cybersecurity issues with Android boxes, and the legal issues around Android boxes. It also includes several charts and statistics on trends in streaming viewership, revenues and market share.
1. The document discusses various ways that movies are consumed now, including streaming services like Netflix and LOVEFilm, illegal downloading, and simultaneous or shortened release windows.
2. It also looks at how the movie industry is trying to adapt to changing audience behaviors and new distribution methods, giving examples like Field in England's simultaneous release strategy.
3. Data is presented on movie piracy trends and the growth of legal streaming services like Netflix that aim to compete with illegal downloading by making movies more accessible.
The document provides statistics about Google, Wikipedia, and YouTube as well as information about online video rental services. It discusses how online video rental works, the types of plans offered, and major players in the industry such as Netflix. Netflix is discussed in depth, including its history and services. The competitive advantages and disadvantages of Netflix compared to Blockbuster and Amazon are outlined. The market scenario for online video rentals in India is also summarized, along with some of the top competitors in that market.
The document provides statistics about Google, Wikipedia, and YouTube as well as information about online video rental services. It discusses how online video rental works, the types of plans offered, and major players in the industry such as Netflix. Netflix is discussed in depth, including its history and services. The competitive advantages and disadvantages of Netflix compared to Blockbuster and Amazon are outlined. The market scenario for online video rentals in India is also summarized, along with some of the top competitors in that market.
The document summarizes statistics about Google, Wikipedia, and YouTube. It then discusses how online video rental services work, the types of plans offered, and major players like Netflix. Netflix is discussed in depth, including its history and services. The document also covers Netflix's competitive advantages and disadvantages compared to Blockbuster and Amazon. It provides an overview of the online DVD rental market in India and some of the top competitors in this space.
The document provides statistics about Google, Wikipedia, and YouTube as well as information about online video rental services. It discusses how online video rental works, the types of plans offered, and major players in the industry such as Netflix. Netflix is discussed in depth, including its history and services. The competitive advantages and disadvantages of Netflix compared to Blockbuster and Amazon are outlined. The market scenario for online video rentals in India is also summarized, along with some of the top competitors in that market.
The document provides statistics about Google, Wikipedia, and YouTube as well as information about online video rental services. It discusses how online video rental works, the types of plans offered, and major players in the industry such as Netflix. Netflix is discussed in depth, including its history, services offered, advantages and disadvantages compared to Blockbuster and Amazon, and the market scenario in India. Major competitors in India are also outlined. In conclusion, opportunities for growth in the online video rental industry in India through improved logistics, social media, anti-piracy efforts, and corporate partnerships are discussed.
The document provides statistics about Google, Wikipedia, and YouTube as well as information about online video rental services. It discusses how online video rental works, the types of plans offered, and major players in the industry such as Netflix. Netflix is discussed in depth, including its history and services. The competitive advantages and disadvantages of Netflix compared to Blockbuster and Amazon are outlined. The market scenario for online video rentals in India is also summarized, along with some of the top competitors in that market.
The document describes a model created to estimate fossil fuel resources over time. It examines how exploration, production, technology, demand, price, revenue, and investment interact as feedback loops that influence the availability of oil reserves. A causal loop diagram maps these relationships, showing both balancing loops that constrain discovery as reserves deplete, and reinforcing loops where factors like improved technology or higher prices increase investment and output. The model was further developed by incorporating more precise variables affecting each sector and modifying some relationships, such as relating investment to productivity rather than discovery rates.
This document discusses applying Lean principles and 3P (Production, Preparation, Process) methodology to healthcare facility design. It describes a case study where 3P was used to redesign an endoscopy department. Over 20 stakeholders participated in a workshop to map patient and staff flows, identify waste, and design new layouts. Emergent designs were selected through voting. The NHS has adopted 3P as a standard for new facilities due to benefits like engaging a cross-functional team and rapidly testing design ideas to embed Lean principles and improve processes. 3P is recommended when changes in demand, new buildings/equipment, or improved products/processes require upgrading clinic workflows.
- There are approximately 6,000 intensivists in the US who care for 5 million patients admitted annually to ICUs, however only 37% of ICU patients receive intensivist care.
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- The ICU environment is not always conducive to treating patients with dignity and respect due to high patient volumes and limited staff resources.
National History Museum in Cleveland: Special Exhibition Attendance AnalysisBaha'eddine Takieddine
Tracking System Technology Assessment for Special Exhibition.
Six Sigma (DMAIC) - process efficiency.
Tracking technology devices
Benchmark on other museums.
This document outlines a proposal to improve transportation from Charles Helou Bus Station to Gemmayze street in Beirut. It currently experiences traffic issues with many cars searching for limited parking. The proposal includes designing new parking at CHBS, operating a shuttle bus between the two areas, and analyzing costs and environmental impacts. Simulation models were created to analyze different transportation models and number of buses. The optimal solution was found to be a sequential bus route with 5 buses, costing $77,080 annually. This solution would reduce parking search time, cut transportation costs, and lower CO2 emissions by 65% compared to the current system.
The document summarizes the history and evolution of the movie rental industry from the 1980s to today. It discusses how movie rentals boomed in the 1980s and 1990s with the rise of retail video stores like Blockbuster. In the early 2000s, increased broadband internet allowed media providers to transition from physical to digital formats. This led to new opportunities for internet movie rentals and the decline of physical rental stores. Netflix capitalized on this transition by offering online streaming and digital rental through mail delivery, which eventually replaced their DVD rental business model.
1. MOVIE RENTAL INDUSTRY LIFE CYCLES
Movie Rentals: The Boom Years : During the 1980s and 1990s, retail video rental stores boomed. In 1995,
the Blockbuster video rental chain had more than 4,500 stores
Movie Rentals: The Internet :Increased access to the World Wide Web created new retail opportunities
Movie Rentals: The New Millennium where the growth of broadband internet access in the early 2000s
allowed media providers to transition from selling physical objects to offering digital formats.
Movie Rentals: Today
3. TIMELINE
The company was
established in 1997
and is headquartered
in Los Gatos,
California by Marc
Randolph & Reed
Hasting
In 2000, Netflix
reached Blockbuster to
become strategic partners
and investors, however
Blockbuster declined the
offer
In 2007, It began to move
away from its original core
business model of mailing
DVDs by introducing Video
on Demand via the Internet
Netflix
introduced the
monthly
subscription
concept in
September 1999
By 2010, Netflix's streaming business
had grown so quickly that within months
the company had shifted from the
fastest-growing customer of the United
States Postal Service to the biggest
source of Internet traffic in North
America in the evening.
On September 18, 2011, Netflix
announced its intentions to rebrand and
restructure its DVD home media rental
service as an independent
subsidiary company called Qwikster,
totally separating the DVD rental and
streaming service
In April 2014, Netflix
approached 50 million
global subscribers with a
32.3% video streaming
market share in the United
States. Netflix operates in
a total of 41 countries
around the world
Rapid growing DVD
rental service where
they gained 3 million
subscribers in early
2005.
5. PESTEL
- Political System:
1) Banking System (Latin America Case)
2) Internet Services Provider Policy that affects streaming options
3) Regulations in government through intervening in any piracy or
illegal movie previewing
- Legal :
1) Firms could be affected by changing laws regarding copyrights of
certain types of content, such as movies and television shows that
firms rely on to provide to consumers
6. CONT.
- Economic:
1) The economic growth of a country where we can understand the income capability of it’s citizen
2) Reducing costs of physical resources after any crises (Brick & Mortar Products)
3) Costs of new consoles ( VHS to DVD, then Blue ray)
- Social/Cultural
1) Lifestyle trends where people adapt to a more convenient way like Online rather then go and find a DVD
disk at a rental store
2) Population of the young generation and their increase interest in technology products (Ex: Watch
movies on Iphone)
7. CONT.
Technology:
- Internet Speed: This improvement in technology has allowed movie rentals online become easier and
much more comfortable
- Technology devices: movies can be streamed on many devices online ( Xbox, Playstation, Tv, Phone)
Moreover, the Redbox (Kiosk) invention in the rental services
8. THINKING STRATEGICALLY ABOUT A COMPANY’S EXT.
ENVIRONMENT
Opportunity Threat
International Presence: It may lead to
financial stability in other countries
(Canada compared to Latin America)
Studio’s offering online streaming on
their own (Warner Bro.)
Video Game Rental Service: It will be
the next mover of competition against
Blockbuster & Redox
Competitors who may offer better
service at lower cost of getting
License( Hulu) or better services (
Amazon)
Expanding Partnership Customers declining interest in movie
discs which may effect a huge profit
margin for Netflix
9. PORTER 5
FORCES
Bargaining Power of Buyer: High
Customers are depending on costs
for watching (Too many options)
Customers are highly sensitive to
the prices and they can determine
the price that they might go for
Rivalry: It is intense
Customers costs to switch brands
are low
Customers have options of Online
Streaming, Mail Delivery, Rental
Place
Low Product Differentiation
Bargaining Power of Supplier: High
Suppliers are studios like Warner,
Universal, Fox) who are few and
may implement high costs for
acquisition of their movie titles
especially on online steaming.
Threat of New Entrants: Moderate
The companies that are already there who created a
brand and image toward customer
The high costs of stocking inventory (Dvd)
Threat of Substitutes: Moderate
Doing any activity regarding watching a
movie at theatre, playing sports or
listening to music may affect
Technology has helped video games to
switch directly to movies
10. DIRECT VS INDIRECT COMPETITORS
Direct Indirect
Amazon Prime Youtube
Hulu The Pirate bay
Comcast Bittorrent
Coinstar Dailymotion
11.
12. VALUABLE- RARE- IMITATABLE- ORGANIZED
DVD & Blue Ray discs
The majority of their business model is in their distribution of their movies. Its strategy for DVD distribution is
through mail, instead of having physical stores
Title variety is one of the main points of Netflix’s current strategic move
Customer service is important to Netflix and is evident through their website. (Queue Model, Recommendation
list)
The capability of online streaming through any device so they will be able to cut costs of shipping
13. VRIO
Capability Is Valuable Is it Rare? Is it Imitable? Organized to
capture value
DVD & BlueRay
Rental
Physical
Distribution
Online Stream
Title Variety
Convenience
14. Capability Is Valuable Is it Rare? Is it Imitable? Organized to
capture value
DVD & BlueRay
Rental
X O O O
Physical
Distribution(by
Mail)
X X X X
Online Stream
(Devices)
X X X X
Title Variety X X O X
Convenience
(Website)
X X X X
15. NETFLIX VS BLOCKBUSTER
• NETFLIX used the Offensive Strategy since it:
• Offered a better service (No late fees) at lower price (DVD by Mail) (2002)
• Pursued the Online Streaming as a first mover advantage and held it’s cost low
due to only having warehouses instead of stores. (2007)
• NETFLIX used the Defensive Strategy since it:
• It sued Blockbuster for initiating their online service feature since it had a patent
about it
• Blockbuster faced Netflix in a price war in early 2004 but it then failed
and went out of online business in 2008 and went to bankruptcy in 2010 (4500
store to an aim of having 500 store in 2015)
• Acquisition by: Dish Network
16. FIRST MOVER ADVANTAGES (NOW)
• The first model leverages an existing subscriber base in an adjacent market to increase the likelihood of success
in the video streaming content.
• Example: Amazon who is leverage its existing internet customer base and driving streaming adoption by
subsidizing the service by offering free shipping on all Amazon purchased products to those who subscribe to
the streaming service.
• The second model is from the content creators themselves. Services such as HBO GO and Hulu
(a joint venture by Disney, Fox and NBC Universal) have lower risk given their reduced content
acquisition costs and are just newfound distribution channels for their valuable content.
So is it still an advantage?
17. NETFLIX VS AMAZON
Jefferies Equity Research
Report, Growth Story
Offset by Rising Costs
and Competition, 4 Sept
2012
18. ACQUISITION FOR A HORIZONTAL SCOPE ( AMAZON)
Feb 05 2014
March 11-2015
19. BACKWARD INTEGRATION STRATEGY
Netflix has tried to lessen the power of suppliers by creating their own series like “The House of Cards” “
Orange is the new Black” in order to lower the cost and the bargain power of the suppliers for offering
their own series
Differentiation-based Competitive advantage when performing activities internally contributes to a better
quality or service offering.
“MRC approached
different networks about
the series,
including HBO, Showtime
but Netflix, hoping to
launch its own original
programming, outbid the
other networks”
20. RECOMMENDATION
1) Strategic Choice: Acquisition of Hulu Plus which is a joint venture in order to combine a competitor to the scope of
work, a) Eliminate a Rival b) Hulu, LLC currently counts 40 million unique visitors to their website each month as
their consumer base c) Netflix will maintain their goal of building their streaming content library by acquiring
content from leading content providers, such as News Corp., NBC Universal and Disney
2) Long run: Strategic Alliance will multi national Television Provider in order to stream their content, for example
HBO which has one of the top series (Game of Thrones)
3) Emergence of Netflix in offering Video Games rental service through offering revenue agreements with company’s
like EA Sports, Rock star Games in order to expand to a new market which is needed such as Xbox, PlayStation,
Nintendo will continue to happen unlike DVD rental service which may decline due to streaming.
4) Long Run: Forming Alliance with Airlines in order to enhance Netflix Service on planes since the technological
advances in aerospace are happening and such services are needed.
5) Expansion Middle East would be hard with all the barriers of internet speed in some countries (Lebanon) or the
Saudi Arabia which doesn’t even have cinema showings even though they have good economic growth. Also,
Egypt who have huge amount of population but lacks stability like many other countries. (Latin America already
showed slow progress) so the target may be United Emirates and acquisition of Startyp: Cinemoz in order to enter
the Arab world industry
On the other hand, the Chinese Market is difficult to enter , but companies like Alibaba who are online retail may use
acquire Netflix in using its structure for China ( Population over 1 billion) and the cost is affordable for Chinese Citizens