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Sit team 6 presentation

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Sit team 6 presentation

  1. 1. Joelle Abi-Nader, Megan Quinn, Alex Ratajczak, Stephen Chen
  2. 2. Objectives •Company growth •Features •Technology •Competition •Future
  3. 3. 12 Things You Probably Did Not Know
  4. 4. Past Five Years 2010- Available on iPad, iPhone, iPod, Nintendo Wii Canada 2011- Latin America and Caribbean 2012- UK, Ireland, and Nordic countries Wins first Primetime Emmy Engineering Award 2013- Netherlands Earns 31 primetime Emmy nominations for original series 2014- Austria, Belgium, France, Germany, Luxembourg, Switzerland Wins 7 creative Emmy Awards for House of Cards and Orange is the New Black
  5. 5. Interesting Statistics ● Total number of Netflix subscribers: 57.4 million ● Number of Netflix subscribers in U.S.: 39 million US subscribers ● Number of hours per month that users spend watching Netflix: Over 1 billion hours ● Percentage of Netflix users that binge-watch shows at least every few weeks: 61% ● Amount of storage that Netflix needs: 100 to 150 terabytes per server
  6. 6. Video
  7. 7. Netflix Features ● 30-day free trial membership ● English subtitles ● Three plans o Basic- unlimited streaming $7.99 / month o Add 1 disc DVD delivery additional $7.99 / month o Two DVDs at a time costs $11.99 / month ● Licensing deals with CBS, ABC, Fox, NBC, Starz, BBC, Sony and DreamWorks ● Commercial-free platform ● Compatible with: PC, Xbox 360, PS3, Nintendo Wii, Internet-ready TV, Roku, Android, Blu-ray player, Nook or other e-reader tablet, and iOS devices
  8. 8. Original Content
  9. 9. Discussion Question How do you watch Netflix? How do you personally feel about the “Recommended For You” List?
  10. 10. The Technology Behind It ● Recommendations o $150 Million/year, 300 People o A/B Testing o No bad shows, only shows with small audiences o Streaming from the cloud ● Profiles o Different people get different profiles o Family filtering
  11. 11. Streaming Issues ● DVD to Streaming ● Problems Behind Streaming o TV vs. Movies o Cost Increases o Licensing Renewal
  12. 12. Tech Management ● Data Organization that Works with Business o 3 Separate Teams o Collaboration ● Product Teams vs. Content Buyers o The right shows for the right people
  13. 13. Discussion Question How do you feel about Netflix losing out on movie streams and going more towards television shows?
  14. 14. The Qwikster Debacle • Split costs of DVD-by-mail plans and streaming plans • Separated two services entirely • Qwikster → DVD-by-mail plans • Netflix → Internet streaming plans • Required users to open two accounts and pay two separate companies monthly • Increased costs for consumers • Before launch, Netflix cancelled Qwikster plans
  15. 15. Disruptive Technology? ● 47% of all U.S. households subscribe to an internet television service ● 49% of households have at least one TV connected to the internet ● 78% of all Netflix subscribers watch their videos on a TV ● Number of people who cancelled pay TV subscriptions who also subscribe to Netflix rose from 16% in 2010 to 48% in 2014 ● 5 million U.S. TV households rely exclusively on internet TV, but 10% of all TV households may cancel that service in the next 10 months
  16. 16. Discussion Question Do you think that pay TV will be replaced with internet TV in the future? Would you ever consider cancelling your cable subscription and solely relying on Netflix for television? Why or why not?
  17. 17. SWOT Analysis Strengths • Brand Recognition • Convenience • Original Content Weaknesses • Cost of Content • DVD Subscribers • Qwikster Failure Opportunities • International Expansion • Original Content • Advertising Threats • Competition • Licensing Prices
  18. 18. Competitors ● $7.99 per month ● Free 1 week trial ● Up to date show selections ● Mobile, tablet, TV, gaming devices ● Limited movie selection ● $99 per year, approx. $7 per month ● Free 30 day trial ● Free two-day shipping ● Commercial free ● Mobile, tablet, TV, gaming devices ● Decent movie selection
  19. 19. Discussion Question Do you use Netflix, Amazon Prime, or Hulu Plus more? Why?
  20. 20. Netflix Culture ● Hiring only "A" players ● Logic and common sense work better than formal policies ● No formal reviews ● Rethink compensation policies ● Clearly define "high performance"
  21. 21. Goals for the Future ● 2015, spend over $600M in marketing to attract people around the world ● 2015, invest over $500M on technology development to improve service and app ● 2015, over $3B on content for members ● End of 2016, available mostly everywhere in world ● By 2020, grow to 60-90 million members in the domestic market based upon trajectory