Netflix Research
NETFLIX UNIFICATION
Presented to:
Reed Hastings, Chief Executive Officer
Netflix
Prepared by:
Jocelyn Casetllon, Autumn Champlin & Audris Hung
Submitted: May 7, 2012
TABLE OF CONTENTS
TITLE PAGE………………………………………………………………………….. i
MEMO OF TRANSMITTAL…………………………………………………………. ii
EXECUTIVE SUMMARY…………………………………………………………… iii
INTRODUCTION………………….…………………………………………………..5-6
Scope of the research……….…………………………………………………...5 Background of the problem….……………………………………………….…6
POSSIBLE SOLUTIONS…………………………………………………………….6-10 New Plan prices……….…………………………………………………….…..6 Reinstate previous plan and increase price gradually…………………………...7 Change to streaming only, eliminating shipping prices…………………….…...9
CONCLUSION………………………………………………………………………...11
RECOMMENDATIONS……………………………………………………………….11
REFERENCES……………………………………………………………………….…12
LIST OF TABLES AND ILLUSTRATIONS
Stock price drop due to price increase…………………………………..5
NETFLIX MEMORANDUM
DATE: May 7, 2012
TO: Michael Shaffer, President of Sales & Video Streaming
FROM: Autumn Champlin, International Manager of Public Relations
SUBJECT: PRICE CHANGES TO ALLEVIATE CUSTOMER FALLOUT ________________________________________________________________________
The quick advancing technology has allowed for a vast majority of Netflix potential customers to greatly enjoy streaming movies and films directly from their home. There are many different devices that would allow for this video streaming to take place. Devices including the PS3, X-Box 360, Wii, Apple products, Internet-connected TV’s, and laptops are able to stream these movies without clicking a remote more then three times!
After intense research on this type of service, we have released that streaming is one of the fastest growing markets. However many subscribers still enjoy renting the actual DVD or Blu Ray as new films become available.
Presented to:
Reed Hastings, Chief Executive Officer
Netflix
Prepared by:
Jocelyn Casetllon, Autumn Champlin & Audris Hung
Submitted: May 7, 2012
TABLE OF CONTENTS
TITLE PAGE………………………………………………………………………….. i
MEMO OF TRANSMITTAL…………………………………………………………. ii
EXECUTIVE SUMMARY…………………………………………………………… iii
INTRODUCTION………………….…………………………………………………..5-6
Scope of the research……….…………………………………………………...5 Background of the problem….……………………………………………….…6
POSSIBLE SOLUTIONS…………………………………………………………….6-10 New Plan prices……….…………………………………………………….…..6 Reinstate previous plan and increase price gradually…………………………...7 Change to streaming only, eliminating shipping prices…………………….…...9
CONCLUSION………………………………………………………………………...11
RECOMMENDATIONS……………………………………………………………….11
REFERENCES……………………………………………………………………….…12
LIST OF TABLES AND ILLUSTRATIONS
Stock price drop due to price increase…………………………………..5
NETFLIX MEMORANDUM
DATE: May 7, 2012
TO: Michael Shaffer, President of Sales & Video Streaming
FROM: Autumn Champlin, International Manager of Public Relations
SUBJECT: PRICE CHANGES TO ALLEVIATE CUSTOMER FALLOUT ________________________________________________________________________
The quick advancing technology has allowed for a vast majority of Netflix potential customers to greatly enjoy streaming movies and films directly from their home. There are many different devices that would allow for this video streaming to take place. Devices including the PS3, X-Box 360, Wii, Apple products, Internet-connected TV’s, and laptops are able to stream these movies without clicking a remote more then three times!
After intense research on this type of service, we have released that streaming is one of the fastest growing markets. However many subscribers still enjoy renting the actual DVD or Blu Ray as new films become available.
References: Bertucci, K. (2012). Netflix versus Hulu plus (Comparison). Gadget Review, Retrieved from http://www.gadgetreview.com/2012/01/netflix-vs-hulu-plus.html Bowen, G Dicker, R. (2011). Blockbuster Express Price Hike Hits Home for DVD Renters. Dailyfinance.com. Retrieved April 23, 2012, from http://www.dailyfinance.com/2011/11/07/blockbuster-express-price-hike-hits-home-for-dvd-renters/ Falcone,J Friedman, W. (2011). Down Stream: Netflix’s New Prices loses Customers. Media Daily News, http://www.mediapost.com/publications/article/158666/down-stream-netflixs-new-prices-lose-customers.html Gregory, N Gunelius, S. (2011). Netflix Price Increase Is Top Reason Customers Are Fleeing. Ask your target market. Retrieved May 1, 2012, from http://aytm.com/blog/research-junction/netflix-price-increase/ Isaac, M Lawler, R. (2011). Netflix officially separates DVD, streaming pricing; $15.98 and up for both. Aol.com/news Retrieved March 27, 2012, from http://www.engadget.com/2011/07/12/netflix-dvd-only-unlimited-plan-appears-price-for-streaming/ O 'Neill, E Pepitone, J. (2011). Netflix loses 800,000 subscribers. CNN Money, Retrieved from http://money.cnn.com/2011/10/24/technology/netflix_earnings/index.htm Reardon, M.(2011) Wasserman, T.(2011). Netflix has lost half its value in two months, Mashable.com. Retrieved April 30, 2012, from http://mashable.com/2011/09/19/netflix-stock-down-42-percent/