3. Mail-based delivery
• On February 25, 2007, Netflix announced the billionth
DVD delivery.
• On March 30, 2009 Netflix announced an increase in the
monthly fee it would charge to customers who rent Blu-
Ray discs, from $1 a month to $2 a month.
• About 10% of the service’s 10 million monthly
subscribers pay a premium to rent Blu-ray titles.(Apr
2010)
5. The battlefield
Streaming is huge potential marketStreaming is huge potential market
100millions USA households already pay for
TV, plus several times that globally.
6. Many ways to enjoy
TV shows and movies
• Cable, satellite, telco TV/DVR/VOD
• DVD sales and rentals
• Movie theatres
• Pay-per-view (PPV), cable & internet
• Free over-the-air broadcast & free online
• Piracy
9. Competitor positioning
廣
▲
目
標
客
群
▼
窄
PC based TV based
YouTubeYouTube
HuluHulu
YouTubeYouTube
HuluHulu
StarzStarz
HBOHBO
SHOWTIMESHOWTIME
EPIXEPIX
StarzStarz
HBOHBO
SHOWTIMESHOWTIME
EPIXEPIX
Apple TVApple TV
TiVoTiVo
Other Set-top boxOther Set-top box
Blu-ray playerBlu-ray player
Apple TVApple TV
TiVoTiVo
Other Set-top boxOther Set-top box
Blu-ray playerBlu-ray player
iTunesiTunes
MovielinkMovielink
CINEMANOWCINEMANOW
iTunesiTunes
MovielinkMovielink
CINEMANOWCINEMANOW
12. Netflix 的 Motorcycle 戰略
• At $9 a month, we augmented rather than
replace the standard video package.
– We’re a motorcycle, the standard video package
is a car.
– There are a few people with motorcycle only, but vast
majority have a motorcycle in a addition to car.
– Our motorcycle has to be great to get car owners to
spend on us.
13. Ubiquitous Netflix
• Video game consoles
• Set-top boxes
• Blue-ray players
• Television
• Hand devices
• Netflix expecting to have the service on more
than 100 different CE devices in 2010
14. What did the analyst say?
• Shares of Netflix Inc. April 21 closed down more
than 6% after an analyst warned .
• Barton Crockett, analyst with Lazard Captial
Markets, in a research note said the draw of
Netflix’s popular Watch Instantly free
streaming service could “be meaningfully
eroded” in the near term as Hulu and YouTube
aggressively bow free ad-supported content.
15. What did their subs say?
• Two-thirds of Netflix customers have used the
service's "Watch Instantly" feature .(Nov 2009)
• But, over 60% of streaming movie watching is
still done on a computer, Only 13% of
respondents said they connect that computer to
a TV.
17. New entry: Red box
• The best part, or at least the
most interesting comes in
regards to the price — $3.95
a month. In addition, it was
also said that those on the
monthly plan would get four
free kiosk rentals per
month. (Apr 2010)
18. New Entry: HBO
• Pay-TV juggernaut HBO has officially
announced the launch of HBO Go, a
video-streaming service.
• HBO Go will be able to offer access to
newer titles than Netflix
• The cable industry's attempt to
transfer the cable business model onto the
Web.
19. Netflix Vs Hulu
Netflix Hulu
Members
13M subscribers
$8.99/mo
For free
Hulu plans to charge
$9.95 as "Hulu Plus".
Titles 17,000 titles More 200 producers
Revenues Subscription fee Ad-supported
Format
Netflix app (MS
silverfox)
hulu 、 hulu
desktop(flash)
Market Expansion
Plan in second half of
2010
Abandoned in 2009
Distribution
100 devices in 2010 XBox360, PS3
20. Potential competitor-Epix
• Epix is a cable channel with a streaming online
companion service that looks to subsume both
TV and computer-based movie-watching into
one subscription.
• Netflix could also suffer if a competitor figures
out a less expensive way of providing streaming
movies direct to a television.
21. What did Hastings say?
• Netflix CEO Reed Hastings attributed his
company’s decreased customer turnover and
lower subscriber acquisition costs to
increases in its streaming service. (Apr 2010)
• “There are a lot of competitive threats… But
cable, satellite, and telcos improving their
products is probably the biggest threat,”
• “We’ll see what Hulu do,”
• “Redbox does many things incredibly well, but
we’re not worried about them as a streaming
competitor,”
• “In the long term the iPad is a great device that
has a lot of potential,”
23. Netflix only in one content type
• User-generated
• News
• Sports
• Movie & TV shows (Netflix)
• Music video
• Adult
• Instructional
24. Netflix only one revenue model
• AD-paid free (YouTube, Hulu, ABC, etc)
• PPV (Amazon, Apple, Sony, Microsoft,
Wal-mart, Best Buy, etc )
• Consumer-paid subscription (Netflix)
• ISP-paid subscription (ESPN3, etc)
• Free, with $ 70 cable/satellite subscription
(HBO-Go)
25. Netflix Strategy:
Stay focused and run fast
• Keep improving our services as rapidly as
possible
– Push streaming content spend up to get more content
– Create amazing experience, especially on TV
– Personalized adaptive UI to generate high satisfaction
from broad catalog content
• Avoid PPV, ad-supported, sports, news, adult,
user-gen, etc
• Low operating margins to drive large growth
• Expand internationally
27. Can Netflix win?
新加入者 ( 弱 - 中 )
HBO GO 、 RedBox
替代品 ( 強 - 更強 )
Piracy 、 VOD 、 CS
T 、 DVD Rental 、
Kiosk 、 Set-top
box
供應商
(弱 - 強)
內容提供者增加
向前整合
( Hulu )
內容授權談判力
ISP 公司哄抬價
格
客戶 ( 中 - 強 )
供過於求
無轉換成本
現有競爭者 ( 強 - 更
強 )
YouTube 、 Hulu 、 Mo
vielink(BBI) 、 PPV
28. Cable/ Satellite/ Telco (CST)
• They’re improving their $70/mo service with more on-
demand, better UI, more content, more HD, etc
• Compelling directly with us $10/mo probably doesn’t
make sense for CST because they aren’t national web
brands, and it only furthers erosion of $ 70 price
point
• Netflix offer only a fraction of the content of CST, and no
consumers leave CST for Netflix (CST 比 Netflix 更具內容優
勢 )
• Providing broadband is hugely profitable for
cable/telco because no content costs and no satellite
competitors, so internet video great for cable/telco profits
– CST will be the major competitor of Netflix!
29. HBO, Starz, Showtime, Epix
• They have strong brands and could go
consumer over the internet
• Netflix want to make money from these
premium channels by distributing them on
Netflix.
• The more they value their content, the
more they’re branded content producer,
and Netflix are purely another valuable
distributor.( 與電影電視頻道既競爭且合作 )
30. The giants
• Amazon, Apple, Best Buy, Disney,
Google, Microsoft, News Corp, Sony,
Time Warner, Verizon, Wal-Mart, etc.
因為實體 DVD 店的倒閉 , 郵寄 DVD 市場會持續成長 , 但線上影音串流最終會取代郵寄 DVD
Netflix 算是內容集結的平台 , 與播放設備合作結盟 , 並尋求最低成本的網路傳輸廠商
February 17, 2010 HBO Go is the new service launched this week to bring paying HBO subscribers HD quality streaming shows to your computer. HBO Go had been in Beta until this week when the announcement was made. It is apart of HBO’s TV Everywhere Strategy. The library is Currently at over 600 hours of streaming online content some of which can be watched live and even in HD.
寬頻公司議價能力強 , 希望 Netflix 哄抬價格增加其獲利 Internet service provider ( ISP ), Pricing by per giga (Akamai:$0.15/G, $0.6/G ) Hulu: Disney, NBC, fox PPV 亦受限於片商的議價能力
Telco: 電信業者 , 電視高畫質的 VOD, 內容更多 70 美元的月費 Like EPIX
Epix (pronounced "epics") is an American premium television channel that is operated by Studio 3 Partners, a joint venture among Viacom (specifically its subdivision Paramount Pictures), MGM and Lionsgate. Viacom handles operational support, including marketing and affiliate services for the service through its MTV Networks division.