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.
this is the analysis of the situation faced by Netflix in 2011. The major reasons being sudden price hike and lack of communication between company and consumers.
this is the analysis of the situation faced by Netflix in 2011. The major reasons being sudden price hike and lack of communication between company and consumers.
Student Presentation Sample (Netflix) -- Information Security 365/765 -- UW-M...Nicholas Davis
The final assignment in the Information Security 365/765 course I teach at UW-Madison, is for teams of students to put together company focused IT security presentations, in which they take the concepts learned in class throughout the entire semester, and apply them to a real company. Here is a sample from Team Netflix! I am proud of the students, and feel that they have gained a solid foundation in the field of information security. Another semester come and gone!
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.
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.
The Netflix Effect: How one company conquered and redefined an industry and i...Alyssa Clevelle
My final project for a recent mass communications class. The project prompt was to choose a media channel and design a presentation explaining how it both reflects and creates culture.
Student Presentation Sample (Netflix) -- Information Security 365/765 -- UW-M...Nicholas Davis
The final assignment in the Information Security 365/765 course I teach at UW-Madison, is for teams of students to put together company focused IT security presentations, in which they take the concepts learned in class throughout the entire semester, and apply them to a real company. Here is a sample from Team Netflix! I am proud of the students, and feel that they have gained a solid foundation in the field of information security. Another semester come and gone!
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.
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.
The Netflix Effect: How one company conquered and redefined an industry and i...Alyssa Clevelle
My final project for a recent mass communications class. The project prompt was to choose a media channel and design a presentation explaining how it both reflects and creates culture.
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.
1 Was it a wise move by Netflix to move from a distribution.pdfabyssiniaimpex1
1. Was it a wise move by Netflix to move from a distribution company to a production company?
2. Can they afford to sustaining and producing original content or will they ultimately have to
buy/merge with a movie/television studio to create a greater portfolio of content?
Article: In 2018, Netflix had over 125 million subscribers in some 190 countries worldwide. It had
earned almost $12 billion in revenues in 2017, and rapid growth in both domestic and international
subscribers had fueled intense investor enthusiasm, causing its market capitalization to reach just
under $150 billion and making it one of the fastest-growing stocks on the market. A photo shows a
puppy dressed in a coat posing. The text behind reads, A Netflix film, Benji. John Sciulli/Getty
Images Entertainment/Getty Images When Netflix was founded in 1997, its business model was to
rent and sell movies on DVDs by mail. Customers could browse and select movies online, and
those movies would be mailed out to the customer, who would then mail the movies back after
watching. Though it initially started with a per-movie rental fee like its largest bricks-and-mortar
rival, Blockbuster, it soon moved to a subscription fee. Customers could choose among plans with
different prices based on how many movies they wanted to rent simultaneously, and they could
keep movies out at long as they wanted without late fees. The subscription plan was a hit, and by
2005 the company was shipping out over a million DVDs a day. One of the most compelling
features of the Netflix site was its recommender system. As people rented movies, Netflix
prompted them to review the movies they had already seen. It thus steadily accrued a massive
database about correlations among movie preferences that it could use to make movie
suggestions to users. For example, if a user gave a five-star rating to Journey to the Center of the
Earth, the system would suggest they might also like The Mummy, Indiana Jones and Kingdom of
the Crystal Skull, and Inkheart. The service turned out to be enormously popular and soon
sounded a death knell for bricks-and-mortar video stores. By having centralized inventory and
shipping movies to people, Netflix could offer a much wider selection than physical stores could
offer, and its scale meant it could both negotiate better prices on content, and invest in value-
added services for customers like the review and recommender systems mentioned previously,
online movie trailers, and more. Importantly, Netflix was also a key channel for films by small,
independent filmmakers to reach audiences, enabling the company to forge relationships that
would prove to be increasingly valuable as time passed. In 2007, Netflix began offering movie
streaming, which rapidly grew to be the preferred mode of movie consumption. Then, in 2011, the
company began acquiring original content for exclusive distribution on Netflix, starting with the
series House of Cards and Lilyhammer. By 2013, it had moved into co-.
ISOM 310 Netflix CaseNetflix 2013 Case Online Video Matures.docxpriestmanmable
ISOM 310 Netflix Case
Netflix 2013 Case: Online Video Matures
In the 1980s and 1990s, people joked about how difficult it was to program a VCR to record a television program. Products like TiVo and other DVRs (digital video recorders) made it easy for consumers to record broadcasted shows and movies. Today, consumers have a wide variety of options in satisfying their desire to watch movies and TV shows. They can rent DVDs and video games from traditional brick and mortar video stores, such as Blockbuster. Cable TV and Satellite TV companies offer premium subscription channels (such as HBO) for a monthly fee, as well as, video-on-demand services. There are other options for those with broadband Internet connections, such as programs that store entertainment and redirection devices (like Slingboxes
). Consumers also can rent or purchase DVDs, Blu-ray discs, and video games at video rental stores, vending machines (like Redbox
), and also can purchase them at electronic stores (such as Best Buy), discount stores (such as Target), or on the Internet (Amazon and Apple, plus many others). In addition, there still is much illegal file sharing of copyrighted digital content. Today, when consumers want to watch a particular movie at any particular time, they have many options.
The U.S. movie "rental" industry has changed. Direct online distribution of content (whether by real-time streaming or downloading for playback) has replaced physical media as the normal method
. Even traditional DVD retail companies like Wal-mart and Target are getting into the digital streaming business
. In addition, many laptops and almost all netbooks and ultrabooks today are being shipped without an optical playback device (i.e., one that can play a CD, DVD and/or Blu-Ray). Obviously, the same is true for smartphones and iPods. In addition to those mentioned above, there also are additional options for receiving digital streaming entertainment, including Internet-enabled TVs, set-top boxes (like Boxee
), game consoles, computers, and readers like the Kindle or Nook. Nonetheless, as of 2010, eighty percent (92 million) of all U.S. households still had at least one DVD or Blu-ray player, leading many to believe the DVD business will retain demand and some profitability for several years to come.
New Competitors and Content
Numerous companies now compete in the shrinking DVD and video game rental industry. Dish Network purchased Blockbuster out of bankruptcy and, in early 2012, has closed 500 of the 1500 remaining stores. Blockbuster, the largest video rental chain in the United States, has launched a variety of initiatives to provide online DVD and game rentals. Dish Network limited the customer base of the current streaming service to pre-acquisition customers and Dish Network subscribers. Recently, Samsung announced (February 20, 2012) a deal with Blockbuster to stream thousands movies to the company's smartphones, tablets, ultrabooks, laptops, smart T ...
2. Introduction
Netflix was established in 1999
Originally only offered DVD rentals
As it grew as a company and competed in
the industry it became stronger and
more innovative
In 2007, it began streaming movies, TV
shows, and documentaries via the
internet
Over 40 million subscribers worldwide
3. Influence on Consumer Decision
Making Process
Netflix introduced a quicker and easier way of delivery with no due dates.
Netflix figured out the optimal entertainment delivery system: Streaming.
Choice of entertainment. Instead of the traditional ways of playing for basic cable,
seeing movies in theatres and renting them at Blockbuster, many consumers
just chose a Netflix subscription.
On the consumer side, people are choosing to view entire series in order instead
of watching whatever rerun is on cable. It’s so easy for people to choose
whichever series they want.
On the industry side, the people that own the rights to these shows and movies are
making more money than ever, as they’re getting more air time since people
can choose to view them whenever they want.
4. Effect on Consumer Market
Netflix accounts for 31.6 percent of all downstream Internet traffic, while competitors
like Amazon video use 1.6 percent and Hulu using 1.3 percent.
Physical video rentals started to diminish with instant streaming via the internet.
Acquired over 10 million new subscribers in 2012.
Related to new original programming, (House of Cards, Orange Is The New Black,
Arrested Development, etc…)
Netflix is giving consumers an alternative to paying a cable subscriptions and that
market is around 100 million households paying on average $90 a month when
Netflix streaming cost is only $7.99 a month.
Revolutionizing the way physical media is acquired through instant streaming has
been Netflixs strongest asset, as is its different platforms and devices it can be
viewed on.
5. SWOT Analysis
Strengths- It’s strengths are weighed primarily from
it’s concept of easy, quick, and efficient
Can be used on many different platforms and devices,
streaming through the internet, ability to partner
with several other companies, and the endless
amount of media content produced
Weaknesses- Netflix face are its lack of streaming
content, it’s inability to advertise during content
being displayed, and streaming the same content
quicker and for free in some cases.
Another major weakness of Netflix is the fact that
users can provide their membership info to other
non-members
6. SWOT Continued...
Opportunities- Expansion through partnerships online, services provided to
homes(cable, internet, gaming consoles, smart tvs, etc…), as well as international
expansion, and the expansion of the content in which they provide
Other opportunities include the creation of original content which has benefited
Netflix tremendously.
Threats- The major threat being able to access the same content from a different
source, for less or even no cost. Also threats from competition like Hulu, HBO
GO, and Amazon offer different content, rates, and services.
Licensing and partnerships with certain media producers limits content and allows
other companies to control the market of certain media demanded from
consumers.
7. Competitive Analysis
When first established
BlockBuster was
largest competitor
The three largest
competitors to Netflix
now are...
Hulu, HBO GO, and
Amazon Prime
8. Traditional v.s. Online Business
http://www.youtube.com/watch?v=mgEPJ8DbIYI
Originally providing DVD’s through the mail
Eliminated late fees and not having to physically
acquire to content from a store was a
competitive advantage over businesses like
BlockBuster and Hollywood Video
Reached full potential when creating instant
streaming now completely separating them
from traditional business practices
Netflix has been extremely successful at using its
online format to collect data on consumer
behavior and feedback in order to enhance the
individual experience of each viewer
11. Company Website
Privacy Policy
Collection & Use of Information
Cookies & Internet Advertisement
Disclosure of Personal Information
Social Sharing
Changes to Policy
Transfer of Information
International Users
Cannot 100% guarantee security
12. Cross-Cultural Differences
Started expanding outside the US in 2010
Available in almost all of North & South America
Most recently available in the Netherlands
Planning to expand into Europe in the second half
of 2014
14. Conclusion...
In conclusion Netflix Inc. has established itself as the largest
subscribed online media provider (40 million)
This form of e-commerce has drawn many other companies in
past years and demand for instant streaming stronger than
ever
Netflix has become the name brand in this industry in consumers
minds when they think of streaming media from any platform
Must increase content and continue to innovate to stay leader in
this industry
