Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
NETFLIX: The Public Relations
Box Office Flop
Presented by-
Kuhu Pathak
Abhijeet Thorat
Case Synopsis-
• The world’s largest internet subscription service for watching
movies and TV instantly with more than 25 ...
• Netflix streams on:
• Microsoft
• Xbox 360
• Nintendo Wii
• Sony PS3 console
• Blu-ray disc players
• Internet-connected...
Fast facts
Spilt into two companies.
Increased prices 60%.
In 2003, 1st Operating profit achieved.
Focused on Content Onli...
1997- Reed
Hastings & Marc
Randolph
founded Netflix
1999- Change of
plans-Monthly
fee
2000- 300,000
subscribers(but
still ...
Lack Of
Communication
Price Increase
Response time
Lack of comparable selection
between DVDs by mail and Instant
Stream
Cu...
Netflix statistics
0
5
10
15
20
25
2007 2008 2009 2010
Members In millions
0
20
40
60
80
100
120
140
160
180
2007 2008 200...
Recommendations: Alternative Business
Models
Bundle
services with
pay-tv
packages.
Less money from
more customers =
Revenu...
Conclusion
• Customers still enjoy Netflix capabilities
Mostly good feedback
Netflix performs well against competitors
Sup...
Netflix Public Relations Case analysis
Upcoming SlideShare
Loading in …5
×

Netflix Public Relations Case analysis

3,197 views

Published on

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.

  • The #1 Woodworking Resource With Over 16,000 Plans, Download 50 FREE Plans... ▲▲▲ http://tinyurl.com/y3hc8gpw
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Netflix Public Relations Case analysis

  1. 1. NETFLIX: The Public Relations Box Office Flop Presented by- Kuhu Pathak Abhijeet Thorat
  2. 2. Case Synopsis- • The world’s largest internet subscription service for watching movies and TV instantly with more than 25 million members worldwide. • Netflix is revolutionizing the way people watch movies and TV shows by streaming directly to them. • Netflix has become the preferred online provider of the entertainment experience in the U.S.A.
  3. 3. • Netflix streams on: • Microsoft • Xbox 360 • Nintendo Wii • Sony PS3 console • Blu-ray disc players • Internet-connected TVs • Home theater system • Internet video players: Apple iPhone, iPad and iPod touch, Android devices, as well as Apple TV and Google TV. • During the first quarter of 2011, sales and rentals of packaged DVDs and Blu-ray Discs plunged about 20 percent, and the sell-through of packaged discs fell 19.99 percent to $2.07 billion, with more money spent on subscription rentals than in-store rentals
  4. 4. Fast facts Spilt into two companies. Increased prices 60%. In 2003, 1st Operating profit achieved. Focused on Content Online Streaming.
  5. 5. 1997- Reed Hastings & Marc Randolph founded Netflix 1999- Change of plans-Monthly fee 2000- 300,000 subscribers(but still in losses) May 2002- released IPO 2003- 1st operating profit 2007- 1 Billionth DVD rented 2010- Global Expansion 2011, Sept- Prices Increased 60% 2011, Qwikster Timeline-
  6. 6. Lack Of Communication Price Increase Response time Lack of comparable selection between DVDs by mail and Instant Stream Customer’s dissatisfaction Not developed business strategy Brand Image Degradation
  7. 7. Netflix statistics 0 5 10 15 20 25 2007 2008 2009 2010 Members In millions 0 20 40 60 80 100 120 140 160 180 2007 2008 2009 2010 Net Income in $million
  8. 8. Recommendations: Alternative Business Models Bundle services with pay-tv packages. Less money from more customers = Revenue boost Less competition = Lower licensing fees Customers sign up for service directly on AppleTV & pay through iTunes. Reach more customers = Revenue boost Partner with gaming companies to offer on- demand video game services. New customer segment = Revenue boost Develop “HBO quality” original content. Lure & retain customers with content that’s untouchable by competitors = Revenue boost
  9. 9. Conclusion • Customers still enjoy Netflix capabilities Mostly good feedback Netflix performs well against competitors Supporters create social media buzz • Price, prompt delivery, communication method Main obstacles:

×