Netflix Case Analyis
Running Head: Netflix Case Analysis
Netflix Case Analysis
Chisom Omenyinma
University of Kentucky
Introduction
Often times the spark for vision can come from unexpected places. Take Walt Disney for example, the creator of the first animated feature-length motion picture. He was one of the greatest dreamers of the twentieth century. And his inspiration came from his disappointment when he took his two daughters to an amusement park in Los Angeles. Fascinated by the beauty of the carousels at the park he edged closer, only to find he had been fooled. The horses had a shabby paint job when viewed up close, and only the outside horses moved. Consequently, his disappointment became his inspiration for his grand vision, and the rest is history. Similarly, when Reed Hastings was forced to pay a $40 late fee for an overdue in-store copy of Apollo 13 he was not pleased. As a result of that unpleasant experience, he came up with the idea for a rent-by-mail video business. His disappointment sparked his vision, and thus Netflix was born.
In 1997 Reed Hastings and Marc Randolph co-founded Netflix in an effort to offer online movie rentals. Based off this clever, yet seemingly simple idea, these two men laid the foundation for the blueprint that would transform Netflix into the world’s leading streaming subscription service for movies and television. For a low monthly rate of $7.99 Netflix users are granted the opportunity to watch movies and regularly scheduled programs, anytime or place, with an internet connection. Currently, ‘With more than 37 million streaming members in the United States, Canada, Latin America, the United Kingdom, Ireland and the Nordics, Netflix has revolutionized the way people enjoy entertainment.’ However, the reason behind why each user is willing to pay is different, which only further displays the potential for growth Netflix has.
According to the case, ‘Netflix was able to grow its subscriber base by
Netflix Case Analysis
Chisom Omenyinma
University of Kentucky
Introduction
Often times the spark for vision can come from unexpected places. Take Walt Disney for example, the creator of the first animated feature-length motion picture. He was one of the greatest dreamers of the twentieth century. And his inspiration came from his disappointment when he took his two daughters to an amusement park in Los Angeles. Fascinated by the beauty of the carousels at the park he edged closer, only to find he had been fooled. The horses had a shabby paint job when viewed up close, and only the outside horses moved. Consequently, his disappointment became his inspiration for his grand vision, and the rest is history. Similarly, when Reed Hastings was forced to pay a $40 late fee for an overdue in-store copy of Apollo 13 he was not pleased. As a result of that unpleasant experience, he came up with the idea for a rent-by-mail video business. His disappointment sparked his vision, and thus Netflix was born.
In 1997 Reed Hastings and Marc Randolph co-founded Netflix in an effort to offer online movie rentals. Based off this clever, yet seemingly simple idea, these two men laid the foundation for the blueprint that would transform Netflix into the world’s leading streaming subscription service for movies and television. For a low monthly rate of $7.99 Netflix users are granted the opportunity to watch movies and regularly scheduled programs, anytime or place, with an internet connection. Currently, ‘With more than 37 million streaming members in the United States, Canada, Latin America, the United Kingdom, Ireland and the Nordics, Netflix has revolutionized the way people enjoy entertainment.’ However, the reason behind why each user is willing to pay is different, which only further displays the potential for growth Netflix has.
According to the case, ‘Netflix was able to grow its subscriber base by
References: Cholewa, Vincent, Lori Dreager, Greg Grilliot, Sze Y. Lee, Drew Wallace, and Sean Wright. "Strategic Management: Competitiveness and Globalization." Case 20 Netflix. N.p., Apr. 2009. Web. 19 Oct. 2013. "Media Center." Netflix. N.p., n.d. Web. 21 Oct. 2013. "Top Three Netflix Competitors: Who 's Challenging the Industry Giant?" FierceOnlineVideo. N.p., 21 Nov. 2012. Web. 21 Oct. 2013.