4. Background
Netflix was cofounded by Reed Hastings and Marc
Randolph, although Randolph left the company in 2002.
Hastings originally got the idea for Netflix when
Blockbuster, a former movie rental service, charged him a
$40 late fee for the movie Apollo 13. Netflix began their
business by shipping DVDs out to members due to the fact
that their customers were โwilling to buy them online and
were strong enough to physically mail outโ (Netflix).
Additionally, both Hastings and Randolph got the idea for
creating Netflix because they wanted to create an online
service that could be viewed as the โamazon.com of
everything but for streaming."
How did they get started and what was
their original idea/service?
Netflix was cofounded by Reed Hastings and Marc
Randolph after Hastings got the idea for Netflix when he
got charged a $40 late fee by Blockbuster. And so, Netflix
began by shipping DVDs out to members. Netflixโs goal
was to be viewed as the โamazon.com of everything.โ
Netflix began investing 1%-2% of revenue into
downloading, lowering mailing costs. In 2003, Netflix
reached 3 million subscribers and finally became a
profitable company.
4
5. Products/Services Offered
Netflix offers several different plans for members to
choose from.
โข Basic, standard and premium plans โ the difference is
the number of screens that can be used simultaneously
โข A 4th plan - ships DVDs out to customers (only available
in the United States)
โข 30 day free trial - allows customers to cancel their plan
anytime before 30 days end and before being
automatically subscribed and having to pay
5
6. Geographic Distribution of Sales
INTERNATIONAL (global phenomenon)
โข From America, Netflix became international by
launching in Canada.
โข Soon after, Netflix launched services in Latin America
and the Asian Pacific.
โข Only North Korea, Syria and mainland China are denied
access to Netflixโs streaming services.
6
7. Financial Statements
7
According to the Wall Street Journal, the past
3 years or their annual Income Statement has
increased by about 600% since 2016 and is
continuing to increase throughout the year of
2019!
According to Macrotrends.net. These are
the Annual Operating Statements for
Netflix!
8. Balance Sheet
2018
8
2017
โ Total Current
Assets: $7,669,974
โ Total Cash:
$2,2822795
โ Total Non-Current
Assets:
$11,342,768
โ Total Liabilities:
$15,430786
2016
โ Total Current Assets:
$5,720,291
โ Total Cash: $1,733,782
โ Total Non-Current
Assets: $7,866,319
โ Total Liabilities:
$10,906,810
9. Observations
9
Based on our recording of the past three years of financial
recordings and balance sheet, Netflix is a profitable
company that is growing exponentially! With Stockholders
Equity and Assets increasing at a rapid rate, we can tell that
their strengths are within those guidelines. Netflix will
absolutely continue to profit with their continuous demand!
10. Management
10
โข A job at Netflix would be enjoyable, because itโs
enjoyable to be told the honest truth about your
work
โข Netflix is highly noted for a unique take on
management.
โข Much of their growth is attributed to management,
structure and bold-leadership.
โข Netflix is recognized for operating differently from
other media companies because of radical
transparency and constant feedback.
โข Constant feedback: โkeeper-testโ โ form of
assessment used by managers to help determine an
employeeโs performance level that ties back to the
idea of radical transparency.
11. Employees
11
โข According to a LinkedIn Q&A, interviews make
sure an employee is compatible with company
culture and has an understanding of technology.
โข Netflix seeks out courageous and humble
employees, who are passionate about their
work.
โข Netflix requires background experience for itโs
jobs.
โข Many employees have praised the company for
granting employees independence.
12. Employees
12
We envision a job in the
marketing/publicity firm at Netflix.
Marketing and advertising are a passion
for us. We could get very creative,
working with these concepts. With
Netflixโs freedom that it gives to workers,
weโd get the opportunity to incorporate
our own style into marketing and
advertising Netflix services around the
world.
โข There are plenty of jobs, falling under a wide
variety of skills.
โข Four main categories of positions held at Netflix:
โข product - business development, design, and
video encoding/streaming
โข corporate functions - communications, finance,
and travel/transportation
โข marketing/publicity - regional marketing, partner
marketing, and creative marketing
โข content - animation, creative content, and
content acquisition
13. People Respond to
Incentives
โข A rise in Netflix suggests a decline in other
forms of media, movies and television.
โข A rise in Netflixโs business suggests that
there are more incentives to watch Netflix
than other forms of media.
14. The rise of Netflix introduced many other competitors to the world
of media streaming.
Hulu, Amazon Prime and Redbox have gained popularity thanks to
Netflix.
Factors Influencing
Competition
14
15. 15
3 Questions That I May Be Asked By Netflix At an Interview
Why do I want to work for Netflix?
Why do I want to work at the specific position Iโm applying for?
Do I consider myself a team player or an individualist?
16. 16
3 Questions I Have For Netflix Managers At an Interview
Have you had any past problems with radical transparency amongst
workers?
How do you keep your workforce content with such open policies?
Will I be working in a group setting, individually or in a mixture of
both?
17. 17
After the Research, Would I Still Like To Work For Netflix?
I would enjoy working for the company.
Netflix employees claim that they get a lot of freedom and do
whatever they deem necessary to bring the business forward.
The job would allow us to use our creativity.
