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ECONOMICS PRESENTATION
Grayson Meeks 2021
NETFLIX
MicroEconomic Structure
- Multi-Platform Video Content Streaming
Service
- Available in over 190 Countries (Not including
China, Crimea, North Korea, or Syria)
WHAT IS NETFLIX?
MARKET
•18-29 Year Olds
•35-44 Year Olds
•Income $30,000+
•No specific ethnicity or culture
WHO ARE THEIR CONSUMERS?
Market Description .1
HISTORY
Market Description .2
2021
2007
1997 2008 2020
2019
2013
Created
Began Streaming
First Competitor Came Out
Created their own productions
More rise in competition
Pandemic hits
Present Day
TOP COMPETITORS
Subscribers
in
Millions
0
75
150
225
300
Streaming Competition
Disney+ HBO Max Hulu
75
150
260
39.4
44.2
103.6
Current Subscriptions 2024 High Projections
Current & Projected Subscription Counts of Netflix's Competitions
Market Description .3
1. Basic $8.99 (SD, One Simultaneous Stream)
2. Standard $13.99 (HD, Two Simultaneous Streams)
3. Premium $17.99 (HD/4k Ultra UHD, Four Simultaneous Streams)
REVENUE STREAMS
Market Description.4
4. Standard DVD Plan $7.99 (One DVD at a time)
5. Standard Blu-Ray $9.99 (One DVD at a time)
6. Premier DVD Plan $11.99 (Two DVDs at a time)
7. Premier Blu-Ray $14.99 (Two DVDs at a time)
Streaming Plans
DVD/Blu-Ray Plans
Large number of buyers and multiple platforms that offer streaming libraries
Relatively low barriers for a studio to create their own streaming service.
MONOPOLISTICALLY COMPETITIVE MARKET
Market Description .5
WHAT ARE FACTORS AFFECTING
DEMAND?
- FLUCTUATING CONSUMER INCOME -
Factors Affecting Demand .1
PRICES FOR RELATED GOODS
Factors Affecting Demand .2
• Disney+ ($7.99)
• HBO Max ($14.99)
• Hulu ($11.99)
• Peacock ($9.99)
• Apple TV+ ($4.99)
• Paramount+ ($9.99)
• Amazon Prime Video ($8.99)
• Cable ($217.42 Monthly Average)
- CHANGES IN TRENDS -
Factors Affecting Demand .3
Quality and Availability in Talent and Creatives Events That May Lead to Increased Sequestering
EXPECTATIONS IN THE MARKET
Factors Affecting Demand .4
Netflix is Expected to Rise to its Highest Subscriber Count by
2024
Subscribers
in
Millions
0
25
50
75
100
Years
2021 2022 2023 2024
What could Cause
Change-Up in Buying
Patterns?
Competition
Trends
Campaigns
And Controversies
Factors Affecting Demand .5
- WHAT'S OUR ELASTICITY? -
Factors Affecting Demand .6
We have a minimum stretch due to need for customer demand and
keeping high-quality original content
FACTORS AFFECTING
SUPPLY
INPUT PRICES
Competition for Streaming and Distribution
Rights to Media
Factors Affecting Supply .1
TECHNOLOGY
Advancements Improving the Market
Increased Server Space
High Processing Power
Easier System Modifying
Factors Affecting Supply .2
24% GROWTH
Each Year Netflix Expects to Grow by at Least 24%
Factors Affecting Supply .C
ENTRY/EXIT
It took 12 years to see strong competition
in this market.
However, in the first year of launching an
online digital library, we were challenged
by Hulu.
Factors Affecting Supply .D
Los Gatos, CA (HQ)
New York, New York
Los Angeles, CA
Washington D.C
OUR LOCATIONS
Factors Affecting Supply .E
- PANDEMIC -
Factors Affecting Supply .F
Netflix Experienced a Rise in Subscriptions Numbers Due to The
Increased Lockdowns and Quarantines
WORK CITED
Bursztynsky, J. (2021, April 20). Netflix reports dramatic slowdown in subscribers. CNBC. https://
cnbc.com/2021/04/20/netflix-nflx-q1-2021-earnings.html.
Gebel, M. (2020, March 20). Yes, Netflix still mails DVDs - here's how to sign up for Netflix's DVD Plan,
and rent movies with no late fees. Business Insider. https://www.businessinsider.com/does-netflix-
still-mail-dvds.
hebergementwebs.com. (2021, March 2). Netflix combines microservices and serverless for its Cosmos
media platform. HébergementWebs.com : L'actualités, guides et tutoriaux du moment. https://
www.hebergementwebs.com/software/netflix-combines-microservices-and-serverless-for-its-cosmos-
media-platform.
Johnson, D. (2021, April 28). How much is Netflix? A breakdown of the monthly prices and offerings for
every subscription plan. Business Insider. https://www.businessinsider.com/netflix-
price#:~:text=Netflix%20offers%20three%20streaming%20plans,how%20much%20each%20one%2
0costs.
Reiff, N. (2021, January 30). How Netflix Makes Money: Asia-Pacific region is growing fastest.
Investopedia. https://www.investopedia.com/insights/how-netflix-makes-money/
#:~:text=Essentially%2C%20the%20only%20source%20of,devices%20and%20in%20higher%20defi
nition.
Sadwick, R. (2019, December 17). Netflix Market Expansion Recommendations: A Targeted Approach to
the U.S. and India. Medium. https://medium.com/@rebecca.sadwick/netflix-market-expansion-
recommendations-a-targeted-approach-to-the-u-s-and-india-10807a8ddd0b.
Spangler, T. (2020, December 11). Disney Plus to Increase Prices in Early 2021, Eyes Up to 260M
Subscribers by End of 2024. Variety. https://variety.com/2020/digital/news/disney-plus-hits-86-8-
million-subscribers-1234850846/.
Stoll, J. (2021, January 13). Netflix subscriber share U.S. by age 2020. Statista. https://www.statista.com/
statistics/742108/netflix-subscription-adults-usa-by-age/
#:~:text=Netflix%20is%20markedly%20more%20popular,those%20aged%2065%20or%20above.
Szalai, G. (2021, April 22). HBO Max, HBReaches 44.2 Million Subscribers. The Hollywood Reporter.
https://www.hollywoodreporter.com/business/business-news/hbo-max-hbo-reaches-44-2-million-
subscribers-4165569/.
Weprin, A. (2021, April 20). Netflix Misses Forecast, Adds 4 Million Subscribers in First Quarter. The
Hollywood Reporter. https://www.hollywoodreporter.com/business/business-news/netflix-q1-2021-
subscribers-earnings-4165366/.
Whitten, S. (2021, March 9). Disney+ tops 100 million subscribers just 16 months after launch. CNBC.
https://www.cnbc.com/2021/03/09/disney-tops-100-million-subscribers-just-16-months-after-
launch.html#:~:text=Disney%2B%20exceeded%20the%20company's%20initial,its%20launch%20in
%20November%202019.
Zambelli, A. (2013, March 1). A history of media streaming and the future of connected TV. The
Guardian. https://www.theguardian.com/media-network/media-network-blog/2013/mar/01/history-
streaming-future-connected-tv.

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Netflix business marketpresentation_economics

  • 1. ECONOMICS PRESENTATION Grayson Meeks 2021 NETFLIX MicroEconomic Structure
  • 2. - Multi-Platform Video Content Streaming Service - Available in over 190 Countries (Not including China, Crimea, North Korea, or Syria) WHAT IS NETFLIX?
  • 4. •18-29 Year Olds •35-44 Year Olds •Income $30,000+ •No specific ethnicity or culture WHO ARE THEIR CONSUMERS? Market Description .1
  • 5. HISTORY Market Description .2 2021 2007 1997 2008 2020 2019 2013 Created Began Streaming First Competitor Came Out Created their own productions More rise in competition Pandemic hits Present Day
  • 6. TOP COMPETITORS Subscribers in Millions 0 75 150 225 300 Streaming Competition Disney+ HBO Max Hulu 75 150 260 39.4 44.2 103.6 Current Subscriptions 2024 High Projections Current & Projected Subscription Counts of Netflix's Competitions Market Description .3
  • 7. 1. Basic $8.99 (SD, One Simultaneous Stream) 2. Standard $13.99 (HD, Two Simultaneous Streams) 3. Premium $17.99 (HD/4k Ultra UHD, Four Simultaneous Streams) REVENUE STREAMS Market Description.4 4. Standard DVD Plan $7.99 (One DVD at a time) 5. Standard Blu-Ray $9.99 (One DVD at a time) 6. Premier DVD Plan $11.99 (Two DVDs at a time) 7. Premier Blu-Ray $14.99 (Two DVDs at a time) Streaming Plans DVD/Blu-Ray Plans
  • 8. Large number of buyers and multiple platforms that offer streaming libraries Relatively low barriers for a studio to create their own streaming service. MONOPOLISTICALLY COMPETITIVE MARKET Market Description .5
  • 9. WHAT ARE FACTORS AFFECTING DEMAND?
  • 10. - FLUCTUATING CONSUMER INCOME - Factors Affecting Demand .1
  • 11. PRICES FOR RELATED GOODS Factors Affecting Demand .2 • Disney+ ($7.99) • HBO Max ($14.99) • Hulu ($11.99) • Peacock ($9.99) • Apple TV+ ($4.99) • Paramount+ ($9.99) • Amazon Prime Video ($8.99) • Cable ($217.42 Monthly Average)
  • 12. - CHANGES IN TRENDS - Factors Affecting Demand .3 Quality and Availability in Talent and Creatives Events That May Lead to Increased Sequestering
  • 13. EXPECTATIONS IN THE MARKET Factors Affecting Demand .4 Netflix is Expected to Rise to its Highest Subscriber Count by 2024 Subscribers in Millions 0 25 50 75 100 Years 2021 2022 2023 2024
  • 14. What could Cause Change-Up in Buying Patterns? Competition Trends Campaigns And Controversies Factors Affecting Demand .5
  • 15. - WHAT'S OUR ELASTICITY? - Factors Affecting Demand .6 We have a minimum stretch due to need for customer demand and keeping high-quality original content
  • 17. INPUT PRICES Competition for Streaming and Distribution Rights to Media Factors Affecting Supply .1
  • 18. TECHNOLOGY Advancements Improving the Market Increased Server Space High Processing Power Easier System Modifying Factors Affecting Supply .2
  • 19. 24% GROWTH Each Year Netflix Expects to Grow by at Least 24% Factors Affecting Supply .C
  • 20. ENTRY/EXIT It took 12 years to see strong competition in this market. However, in the first year of launching an online digital library, we were challenged by Hulu. Factors Affecting Supply .D
  • 21. Los Gatos, CA (HQ) New York, New York Los Angeles, CA Washington D.C OUR LOCATIONS Factors Affecting Supply .E
  • 22. - PANDEMIC - Factors Affecting Supply .F Netflix Experienced a Rise in Subscriptions Numbers Due to The Increased Lockdowns and Quarantines
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