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.

1. HOW AN 19-YEAR-OLD COMPANY CREATED A NEW MARKET
THROUGH THE INTERNET
J.S Yashas
March 14, 2017

2. CONTENT:
• Introduction
• History
• Netflix Customer’s and Business
• S . W . O. T Analysis
• Strategy
• Conclusion

3. Top 10 U.S. Online Retailers Ranked By Online Sales (In Billions) In 2016
Amazon $67.9
Apple $18.3
Staples $10.4
Wal-Mart $10
Sears $4.9
Liberty Interactive $4.8
Netflix $4.4
Macy’s $4.2
Office Depot $4.1
Dell $3.6
Source: based on data from Internet Retailer, 2016b

4. HISTORY:
• Founded by Marc Randolph & Reed Hastings on Aug 29, 1997 in California.
• Originally a website that rented DVDs through mail posting and a
traditional pay-per-rental model (P . P . R . M)
• In the early 2000, The P . P . R . M was dropped and launched its well-
known subscription model.
• By 2005, Netflix had 35,000 different film titles and shipped 1 million DVDs
out every day.
• In Feb 2007, company introduces the video on demand (V . O . D).

5. Netflix
44%
Apple
32%
Others
10%
Microsoft
8%
VUDU
4%
Sony
2%
Netflix Apple Others Microsoft VUDU Sony
Major U.S. Online Movie Distributors, based on data from
industry

6. CUSTOMERS:
• Netflix is always customer centric strategist.
• Now provides online streaming to answer the needs of its
customers.
• Today, Netflix is the market leader in streaming movies and T.V
shows.

7. NETFLIX COMPETES IN TWO DIFFERENT MARKETS:
1. DVD Rental Industry.
2. Online Television & Premium Video Industry.
(O . T . P . V .I )
BUSINESS:

8. STRENGTHS:
 Strong Brand Image
 Unique customer recommending algorithm
 Original Content
 A.T.A.W.A.D Platform

9. WEAKNESS:
 Internal Costs
 Raising Subscription Prices

10. OPPORTUNITIES:
 Growing Market
 International Opportunities

11. THREATS:
 Competition
 International Regulations
 Hollywood and other content providers

12. STRATEGY:
 1997-2006: Creating a new business model
 2007-2010: Developing a powerful platform for every needs
 Since 2011: Extending its business and acquiring new customers

13. CONCLUSION:
 Netflix is the perfect example of a company that uses Internet to
reinvent the market although the company came as a disruptive,
ahead of time, many are now trying to implement a similar
business model to compete it.
For Ex: The Viral Fever Videos (T . V . F) in India founded by
Arnubh Kumar.
 While Netflix as a product is ahead by a step, the future of it is
uncertain as it has given way to other competitors like Google
with Google Movies and Amazon with Amazon Prime Videos also
Hotstar by Star India and many more..

14. -THANK YOU