Gabriela D’cunha –
Genevieve Nora Dias –
Jovita Francy Dcosta –
Manisha Kumari – 14058
Mario Allen Clement –
Netflix – An Intro
Mission, Vision and Value
Netflix Business model and Pricing
Subscription based business model
Strategy Adopted & Market Trends
Technology Channels & Subscribers
Qwickster and Netflix
PEST analysis, Five forces analysis & SWOT Analysis
Is Netflix Attractive???
NETFLIX – AN INTRO
An American provider of on-demand Internet
Parts of Europe
Flat rate DVD-by-mail in the United States
DVDs and Blu-ray are sent via Permit Reply Mail.
MISSION, VISION AND
Netflix referred to its brand promise as a
Values - Judgment, Productivity,
Creativity, Intelligence, Honesty,
Communication, Selflessness, Reliability,
At Netflix, we seek to be the highest quality subscription business
that offers Internet streaming and DVD by mail content (2). We
believe in offering the best customer service possible by teaching
our employees to be honest, respectful and ethical (6) while also
valuing every customer’s individual needs. Our employees (9) are
provided with the latest technologies, excellent benefits, and the
safest working conditions in the industry. We provide outstanding
customer service and in return, our customers (1) in our North
American and Mexican markets (3) recommend their friends to
Netflix (5). Our vast library of DVD’s and streaming service (4)
provides a competitive advantage (7) as compared to offering only
streaming. At Netflix, we strive to be a good corporate citizen (8).
2.Products or services
5.Concern for survival
8.Concern for public
BUSINESS MODELThe DVD-by-Mail option:
Select one or more movies
Received DVDs by first class mail
2004-10 added more distribution channel
The streaming option
Instant watching capability
Licensing increasing amount of digital content
Netflix took a “metered” approach to streaming
Switched to an unlimited streaming option
2011- No single subscription plan
A comprehensive library of movies & TV
New content acquisition.
Convenient & easy-to-use movie selection
A choice of mail delivery vs. streaming.
Marketing & advertising.
Transitioning to internet delivery of content.
Renting movies & TV content - streaming movies
& TV shows
The owners of Hulu offered a free online video service
TV everywhere concept & program offerings
Introduction of new technologies & electronic products
Increasing number of devices
Wide variety of distribution channels & providers
Experimenting Movie Studios with shortened release
In September 2011, split off the DVD rental
Into a new company called Qwickster.
NetFlix loses 800,000 customers.
Stock prices falls from $295 to $108/share.
In October 2011, decides to NOT split off the DVD
ANALYSISThreat of new entrants – high (Apple, Amazon, Hulu,
Threat of substitutes – high (Apple TV, Hulu)
Bargaining power of customers – high (a lot of substitutes)
Bargaining power of suppliers – high (content is key)
Intensity of rivalry – high (HBO, low entry barriers)
Complementors – high (Microsoft, Wall-Mart, Roku, Vizio,
Very competitive prices
Internet pipe providers
Fit for Purpose Balance Sheet
40% of assets are content related
High cash balances / Bank revolver
Investment in Technology
Cost pressure (competition, streaming video and international
Investors have significant expectations
Ability to monetize subscriber growth
Average subscriber growth 40%
Manage churn rate below market average
Focus on internal cost management
Maintain healthy gross margins
Australia to be more attractive.
Expected to make profits from 2017.
Flexibility in Business
Opportunity if Apple acquires Netflix.
Quality, Brand and Size.