5. Internet TV is
replacing linear TV
As Internet TV grows from
millions to billions, Netflix is
leading the way around the
world.
Apps are replacing
channels, remote controls
are disappearing, and screens
are proliferating.
6.
7. Company Facts
• World’s largest subscription service company.
• IPO released in the year 2002.
• 48.4 million subscribers(domestically 35.7 million subscribers in US alone)
and counting.
• Spending annually $350 million to maintain streaming services.
• $1.27 billion in revenues.
• ISP in US with best connectivity is “GOOGLE Fiber”.
• Over 1 billion hours spent by its subscribers monthly.
11. • Customer Service - Serve the dissatisfied
customers of the competitor.
• Eliminate the late penalty fees
• Competitive pricing structures
• Netflix’ early entrance to ‘online’ service has
created a first-mover advantage in the form of
established subscriber base and brand recognition.
12. Why use it’s Service?
• It’s Legal!
• Unlimited movies online.
• Watch it any and everywhere ads-free.
• First month Free trail.
• Are you done watching movies, TV shows?
Cancel the subscription anytime
• No Viruses
13. Competition
• HBO & Amazon Prime Instant Video
• DVD watching
• Video Games
• Web browsing
• Torrent
14. • Strategy is fairly easy to replicate.
• DVD’s are likely to become obsolete
• Switching costs are relatively low
15.
16. Strengths
• User Experience
• Streaming Capability
• Large Subscriber Base
• Size of Content Library
• Low cost products
Weaknesses
• Inability for Subscriber Base
to Absorb Price Increases
• Lack of Streaming
Content/New Releases
• DVD Segment
17. Opportunities
• International Market
Expansion
• Creating and having
Original Content
• Ability to Raise Capital
• Better Use of Advertising
Threats
• Content Prices
• Competitive Environment
• Influence of Google/
YouTube
• Major Industry Shift to
Content Streaming
• Rivals: Amazon, Google,
Hulu, Redbox, YouTube.
19. Political
• Content Licensing and
Copyrights
• Censor board
Social
• Threat of Piracy-
Opposing Subscription
fee
Economic
• Unlimited Market size
• Technology applicable
for all countries
Technological
• DVD Technology
becoming obsolete
• Online Videos needs
High Internet Speed
20. Recommendations
• Release movies before competitors by
collaborating with the various Studios.
• Streaming of more webisodes.