Purdue University Summer I

1. NETFLIX AND
INTEGRATION INTO
RUSSIA
Kami Cleary and Tim Michels
Purdue University
Summer I 2016

2. NETFLIX OVERVIEW
• Founded in 1997 by two engineers as a way to rent movies
• Since then, Netflix has expanded from DVD’s to documentaries, tv shows, and films
• Operates in over 190 nations worldwide with increasing revenue yearly
• Netflix relies on internet expansion and use for improving business
• As part of expansion, Netflix identifies Russia as a growing market with publics who
are regularly active on the internet

3. RUSSIA OVERVIEW
• Russia is the world’s largest landmass with a deep and complicated history in
Communism
• The country boasts one of the fastest growing internet usage rates along with tv
viewing
• Because of different population regions and cities, there are many diverse cultural
groups
• Under the leadership of Vladimir Putin, Russia is coming out of recession with new
opportunities for technology companies

4. NETFLIX’S TARGET AUDIENCE
• Netflix customers who are regionally based
A. Russia is divided into 5 meta-regions (i.e. European, Ural, etc.)
• Russian federal government and Vladimir Putin
• A. Most media in Russia is state owned and controlled
• Netflix employees
• Financial shareholders
• Distributors

5. MESSAGE TO CUSTOMERS
• Messages to CUSTOMERS convey that Netflix will be adapting to Russian cultures.
• Netflix will be interacting with a variety of people with different language needs.
• “Netflix is the world’s premiere video streaming provider, and Netflix is adapting TV
shows for the Russian views to watch in their native language.”

6. MESSAGE TO THE RUSSIAN GOVERNMENT
• A very important message to the RUSSIAN GOVERNMENT is cooperation.
• Netflix’s desire to conduct business in accordance with governmental regulations.
• Netflix’s practice of hiring Russian nationals.

7. MESSAGE TO EMPLOYEES
• A key message to EMPLOYEES is that they will be trained to work in a Russian
environment.
• “Netflix consistently fulfills its commitment to investors, customers, employees and
communities.”

8. MESSAGE TO SHAREHOLDERS
• A key message to SHAREHOLDERS is consistency and business development by
reaching new Russian customers and increasing international expansion.
• While revenue may decrease initially, the long term return is positive because of
Russia’s vast marketing opportunity

9. MESSAGE TO DISTRIBUTORS
• A key message to DISTRIBUTORS is that they will be held to a high standard of
performance and expectation.
• The suppliers are a key player in Netflix’s success because they establish credibility
to customers and represent company values

10. MEASURE OF SUCCESS
• Data collections, analysis inputs, and metrics will measure overall success in Russia
• Online surveys will also be sent out to users as a way to focus on customer
satisfaction and feedback from the Russian market
• Since Netflix is so active online, a media clipping service will be used to track
positive feedback and input in the press
• Netflix will also examine the impact and workings of the stock market to report
important information to customers and financial shareholders

11. •Россия
NETFLIX RUSSIA

12. CONCLUSION
• Netflix’s expansion into Russia has challenges, but also many opportunities for the
organization
• Russia is a unique country that presents a door for Netflix to increase international
operations
• For Netflix to be successful, key messages will need to be delivered to important
stakeholders
• Thank you!!

13. REFERENCES
• A brief history of Netflix. (2014, July 21). Retrieved May 15, 2016, from
http://www.cnn.com/2014/07/21/showbiz/gallery/netflix-history/
• Central Intelligence Agency. (2016). Russia. In The world factbook. Retrieved from
https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html
• Hartog, E. (2016, January 14). Netflix's Desire for World Domination Reaches
Russia | Business. Retrieved June 01, 2016, from
http://www.themoscowtimes.com/business/article/netflix
s-desire-for-world-domination-reaches-russia/555720.html

14. REFERENCES CONT.
• Netflix's View: Internet TV is replacing linear TV. (2016, April 18). Retrieved June
07, 2016 from https://ir.netflix.com/long-term-view.cfm
• Russia. (n.d.). In Wikipedia. Retrieved May 15, 2016, from
http://en.wikipedia.org/wiki/Russia
• Sriramesh, K., & Verčič, D. (2009). The Global Public Relations Handbook, Revised
and Expanded Edition: Theory, Research, and Practice (Vol. 2). New York, NY:
Routledge.