NETFLIX

PAULINA JASWIEC

MBA 555 BUSINESS STRATEGY

COMPANY INTRODUCTION

Founded in 1997

Movie and TV series network

48 million members

40 countries

all enjoying…

1 billion hours of TV shows and movies per month, including original series

VISIONBecoming the best global entertainment distribution service licensing entertainment content around the world creating markets that are accessible to film makers helping content creators around the world to find a global audience Netflix Team

COMPANY PRESS RELEASE

Competitor- Hulu, (later) HBO

Goal:

• stick to commercial free • limited subscription TV

“Internet TV replace linear TV”:

• Apps will replace: channel, remote control, screens will proliferate

Long Term VIEW

SWOT ANALYSIS

STRENGTH

• Brand name (48 mil)

• Own original series

• Good delivery platform system

• Low monthly cost for unlimited at 7.99 per month

OPPORTUNITIES• Innovation to cloud

• Online game streaming

• Marketing/Advertising

WEAKNESS • Take debt to fund extreme

content licensing

• Technical errors

• User accessibility

• Not available in Europe and other countries due to legal issues

THREATS

• Illegal downloading

• Competitors

• Content pricing

DEMAND IS…..

SUPPLY IS…

What is happening?

RELEVANT DETAILSWhy company is struggling?

• Variety in content

• Streamlining and technical issues

• (not made for the future)• Threat from competitors

and acquisitions

• (Apple and Comcast join hands)

• Poor Marketing

• Barrier to entry

• (Samsung TV app)• Price increasing

What is the company future?

RECOMMENDATIONS

Relevant detail Recommendation

1. Variety in Content Interactive video and games, music videos according to preference, sporting events, progress with own series

2. Innovation & Technical Issues Stream live and store in cloud

3. Threat from Competitors Grow allies and follow trends

4. Poor Visibility Marketing & Branding

5. Barrier to Entry Stronger partnership, forming alliances, (e.g Samsung TV)

REASONS FOR RECOMMENDATION

VALUE & VARIETY Create Value with Marketing & Services = Customers retention

1. Interactive video and games

2. Music videos (according to preference)

3. Sporting events

4. Progress with own series

5. Add original content that reached to demographics (interest, age, language)

Need to keepadding value

Cloud & Technical advancement = market leader

1. Stream live and store in cloud (keep up with the potential numbers of customers)

2. Rent a box- console system (independent of a computer- solve wireless system)

3. To create a true home entertainment systems

4. Become interactive (location, store)

REASONS FOR RECOMMENDATION

INNOVATION & TECHNOLOGY

Barrier to entry by building partnerships + alliances

1. Legality issues- local networks (offering individual brands- to support different languages)

2. Anti Pirating Organizations (work with to help promote digital media the legal way)

3. Continue to work on International copyright laws= stream work wide

4. Incorporating more service into one

REASONS FOR RECOMMENDATION

INTERNATIONAL STRATEGY

THANK YOU