Preview

Netflix Case Study Analysis

Powerful Essays
Open Document
Open Document
7539 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Netflix Case Study Analysis
Netflix, Inc., (NASDAQ: NFLX) is an American provider of on-demand internet streaming media in the United States, Canada[5], and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California. It started its subscription-based digital distributionservice in 1999[6] and by 2009 it was offering a collection of 100,000 titles on DVD and had surpassed 10 million subscribers. On February 25, 2007, Netflix announced the billionth DVD delivery.[7] In April 2011, Netflix announced 23.6 million subscribers.[8] In summer 2011, Netflix announced they will expand into the European market, starting in Spain by 2012.[9] In September 2011, Netflix completed the launch of streaming-content services in Latin America by launching in the Caribbean, Mexico, Central and South America. Contents [hide] * 1 History * 2 Services * 2.1 Internet video streaming * 2.1.1 History * 2.2 Disc rental * 2.2.1 Qwikster * 2.3 Original programming * 2.4 Profiles * 3 Device support * 3.1 Hardware supported * 3.2 Software support * 3.3 Video game consoles * 3.4 Set-top boxes * 3.5 Blu-ray Disc players * 3.6 Televisions * 3.7 Handheld devices * 4 Sales and marketing * 4.1 Expansion * 4.2 Competitors * 4.2.1 Time Warner * 5 Finance and revenue * 5.1 2010 * 5.2 2011 * 6 Legal issues and controversies * 6.1 Recommendation Algorithm * 6.2 Throttling * 6.3 Releasing This Week * 6.4 Dynamic queue, subscription & delivery methods * 6.5 Removal of Friends feature * 6.6 Linux support * 6.7 Partnerships * 6.7.1 Starz * 6.7.2 DreamWorks * 6.8 The CW * 6.9 Closed captioning * 7 Technical details * 7.1 Streaming * 7.2 "Throttling" * 7.3 Netflix API * 7.4 IT infrastructure * 8 See also * 9 References * 10 External links |


References: Netflix offers several pricing tiers for DVD rental of one to three DVDs at a time. Gift subscriptions are also available. Since November 21, 2008, Netflix has offered their subscribers access to Blu-ray Discs for an additional fee. On October 10, 2011, following negative reaction from customers, Netflix CEO Reed Hastings announced the cancellation of the planned Qwikster service and said that the DVD-by-mail service would remain a part of Netflix.[45] [edit]Original programming
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Netflix vs. Redbox
    • 1043 Words
    • 5 Pages

    Netflix vs. Redbox

    * Being an on-line DVD rental store, Netflix combines the growing Home Entertainment Market and the Internet. Unlike brick-and-mortar video rental business, Netflix incurs less overhead because no storefront is required and less employees are hired. Movies are sent to customers in prepaid envelope within 24 hours after the customer returns a movie. Located in San Francisco, Netflix still owns nation wide market through World Wide Web. In addition, customer can easily get the movies they like without leaving home.…

    • 1043 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Netflix Case Analysis
    • 3125 Words
    • 13 Pages

    Netflix Case Analysis

    Netflix was founded in 1997 by Reed Hastings, founder and CEO. Prior to this, Hastings founded Pure Software in 1991 and led several acquisitions that allowed Pure Software to become one of the top 50 largest software companies in the world. In 1999, Hastings launched the online subscription service and led Netflix to a subscriber base of over 1 million in just three and a half years, something that took AOL six years to accomplish. Netflix’s business strategy was quite simple, because they had pioneered the online DVD rental industry when DVDs were rare and had developed a strong lead of customers, revenue, and brand recognition. In response to its ever growing competition, in June of 2003, Netflix won a patent that covered much of its business model and could be used to help stifle future competition or at least demand licensing fees for the service. Additionally, according to Mike Schuh of Foundation Capital, one of Netflix’s earliest financial backers, the barriers to entry in the online DVD rental market were very low, but the barriers to profitability were very high. Lastly, Netflix faced a greater challenge, in that the likelihood that DVDs would soon no longer be the medium of choice.…

    • 3125 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Netflix
    • 2233 Words
    • 9 Pages

    Netflix

    Netflix started as an online based movie rental service in 1999 when it was created by founder Reed Hastings, the current CEO of the company. Hastings’ goal for the company was to be “the world’s best Internet movie service provider and to deliver a growing subscriber base and earnings per share every year” (Thompson, C-92). The company has been able to become a leader in the movie rental and streaming industry for several reasons. Netflix was an early entrant to the industry and has been able to build an extensive subscriber base due to aggressive promoting and advertising of the brand, exclusive contracts with movie suppliers, and their superior customer service and knowledge.…

    • 2233 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Analysis of Netflix Information Systems
    • 2059 Words
    • 9 Pages

    Analysis of Netflix Information Systems

    Before looking at the systems that make Netflix’s service possible, a brief overview of this service is needed. Subscribers pay monthly based on a tier pricing plan determined by the amount of DVDs that can be rented at a time. The tiers range from $7.99 for only streaming video, up to $55.99 for 8 DVDs at one time. It is important to know about this tiered-pricing system and how the amount of DVDs a subscriber can have at a time varies amongst their 16 million customers. Without an effective SCM system they would not be able to keep up with the always varying amount of DVDs being mailed out at a time.…

    • 2059 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Netflix (Management of Innovation Case)
    • 1129 Words
    • 5 Pages

    Netflix (Management of Innovation Case)

    Netflix has been in the forefront of innovation in the video rental industry despite the fact that it came about 20 years after the opening of the first brick and mortar video rental store (The Video Station) and 12 years after the opening of Blockbuster (its most prominent competitor). Netflix’ mail service came in at the right time when the DVD-format was still new making the company’s business model even more relevant. The change in format (VHS to DVD) was just the first of the many changes that happened in the industry but Netflix seemed to have the right formula to make its business relevant to the business landscape at for its strategies to work for their growth.…

    • 1129 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Netflix Case Study Essay Example
    • 955 Words
    • 4 Pages

    Netflix Case Study Essay Example

    Netflix’s business model is to provide customers with access to the DVDs they want, instantly, for a very competitive monthly subscription. With a choice between eight monthly subscription plans and first month free promotions, there is a plan to suit every…

    • 955 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Netflix strategy final project
    • 1970 Words
    • 6 Pages

    Netflix strategy final project

    The majority of Netflix's value is currently on its U.S. Streaming. According to Netlix’s Annual 2013 Report, the DVD subscribers are expected to decline significantly in the U.S. while streaming subscribers are expected to grow. “We named the company Netflix, not DVDs by Mail because we knew that eventually we would deliver movies directly over the Internet,” -Hastings. The home video market is growing in the U.S. and streaming is the best way to tap it given the proliferation of multiple internet-enabled devices. Secondly, the international streaming business is likely to remain a relatively lower value contributor for several years because Netflix will face high content costs as well as local competition and resistance. Moreover, markets such Latin America have lower broadband penetration and per capita income, thereby making any rapid growth in this region difficult for Netflix.…

    • 1970 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Netflix: A Case Analysis
    • 2578 Words
    • 10 Pages

    Netflix: A Case Analysis

    Netflix offers a variety of product services to its customers. The company offers traditional DVD rental by mail, instant streaming of DVD content through home PCS, and streaming on Netflix-ready devices that could be hooked up to one’s TV. Netflix has a subscription based model, which allows customers to utilize their products/services through a per month fee rather than a pay as you go rate. Although the company offers eight different subscription packages, it derives its largest revenues from its $8.99, $13.99, and $16.99 subscription plans that include unlimited DVDs per month, 1-3 titles out at one time, plus unlimited streaming of online content.…

    • 2578 Words
    • 10 Pages
    Good Essays
    Read More
  • Good Essays

    Netlfix
    • 904 Words
    • 3 Pages

    Netlfix

    Netflix is a company defined by progress that pushes the bar of innovation, a company that promises 500k subscribers by IPO time and delivers 700K. A company led by a man not afraid to take risks.…

    • 904 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Netflix
    • 2645 Words
    • 11 Pages

    Netflix

    Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great…

    • 2645 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Good Essays

    Netflix Case Study
    • 834 Words
    • 4 Pages

    Netflix Case Study

    Netflix offers prepaid subscription service whereby customers only need to sign up and pay a fixed subscription fee a month for unlimited rentals.…

    • 834 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Netflix Case Study
    • 2447 Words
    • 10 Pages

    Netflix Case Study

    Netflix is not a small provider of entertainment. As of 2009 they had over 10 million subscribers from all over the world. By 2011 they had grown to 26 million worldwide. Netflix had a great opportunity for many years and was able to surpass all other competitors.…

    • 2447 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Netflix Case Study
    • 3173 Words
    • 13 Pages

    Netflix Case Study

    In terms of price, although not being as cheap as the Wal-Mart rental offer, Netflix’ subscription fee is affordable. The fee was comparable to what Blockbuster is charging its customers. Netflix is cheaper than Amazon if you borrow at least 2 movies a month which is mainly the case for Netflix’ customers as they have an average of 15.…

    • 3173 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Netflix Case Study
    • 1131 Words
    • 5 Pages

    Netflix Case Study

    When Netflix first started the technology of DVD was just getting into the market. This posed a limited market as most people still had VHSs. One of their competitions, Blockbuster carried DVDs also, but customers saw it was a convenience that Blockbusters were generally ten minutes away from at least 70% of U.S. populated homes. It had not hit customers yet, that they would not have to leave their homes to rent movies, and that it was actually an advantage for customers, which Netflix was trying to get them to see. It was easy for customers to go to Blockbuster because of the number of them available. Netflix realized that they had to be perceived more as having the competitive advantage. Money, particularly saving money would get most peoples’ attention, so Netflix implemented a no late fee policy. Customers were finally being attracted to Netflix’s model of value, convenience, and selection. They were gaining customers based on this, as Blockbuster charged late fees.…

    • 1131 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    01 Netflix
    • 1517 Words
    • 9 Pages

    01 Netflix

    Netflix founded in 1997, Netflix provides DVDs and Blu-ray discs to Internet based subscribers in the United States, Canada, Mexico and Latin America and DVDs and Blu-ray discs delivered to the homes of customers in the United States. Customers, who receive DVDs by mail, keep the media for as long as they wish with no late fees and return the DVD in a prepaid shipping envelope and then are eligible to select their next DVD. Subscription plans start as low as $7.99 per month. The company had 25 million subscribers as of Summer 2011.…

    • 1517 Words
    • 9 Pages
    Better Essays
    Read More