Analysis On Netflix Inc.

Executive Summary This report analyzes the company Netflix to determine whether or not it makes a good investment at this time. Netflix was founded in 1997 in California. The company launched its website that same year, at the time the company was composed of only 30 employees and had close to 1000 DVD’S available to rent. Netflix was one of the first company’s to offer rental DVD’s on a monthly subscription basis rather than having to pay per DVD. The year 2007 was a big year for Netflix and its first step toward its new business model. Netflix moved away from renting DVD’s and instead shifted to video on demand via the Internet. Today, Netflix holds the spot as the world’s top Internet television network; with almost fifty million subscribers in close to fifty nations who enjoy hours of TV shows and movies every month. (Netflix)

In the past Netflix had to address server complaints about how the steaming capability has slowed down there services to their customers, which could also be due to the peak hours that most subscribers stream although the streaming capability might be the internet providers. When Netflix presented their product line for premium cable television networks such as HBO and Showtime, the issue would start to improve their internal infrastructure. Netflix will be able to deliver the resources and services to all

The demand for digital content is driving changes in the rental industry. Technology is shifting from a physical medium to a digital distribution system. This is likely to be beneficial because Netflix is already rooted in the digital streaming industry and would only have to adapt to minor changes in technology.

2.1 Netflix in the United States 2.1.1 The beginning of Netflix Company The story of Netflix was a result of personal embarrassment by the Netflix’s founder, Reed Hastings. Back into 1997 where the whole story of the company begins, Hastings kept a rental VHS for six weeks, forgetting to return it to the rental store. He soon owed a late fee of $40 after he returned the videocassette back to the shop. It was the first time that Hastings faced the problem that there was a rental overdue fee from the local rental store. Later, Hasting found out that most of the local stores used this system to charge additional costs to the customers. Then it made he thought would it be possible if a business does not charge customers for late fee. Hence, he started to think about running a new

Southern New Hampshire University Netflix Netflix is an entertainment company that specializes in streaming media and online video-on-demand. Over the years, it has grown to include film and television production and other distribution services. Its business model has changed, and so has its overall production cost grown to keep up with the increased market share. As a result, its current position in the market has made it more exposed to competition from other firms, which is why it needs to develop new strategies to remain profitable. Netflix has grown over the past years despite competition and its unprofitability (Helft, 2007). Therefore, to understand its success, it is important provide a microeconomic analysis of Netflix, its history, its products, and the market.

Current situation Introduction to the Company Netflix was founded by Reed Hastings and Marc Randolph in 1997 and was originally based out of Scotts Valley California. The business model that they were working towards was to create a company that would offer online movie rental service made available by streaming media as well as DVD’s that could be ordered online and delivered to the customers’ homes. (Wheelen, Case 12). Netflix had a strategic plan to undercut the competition in an effort to stress the market and force weaker competition out of the field. This was a very successful plan and over a period of years it was able to force the closings of most of its competing market to include the mega giant Blockbuster video. Using a business

EXECUTIVE SUMMARY Netflix began in 1997 as a revolutionary idea by CEO Reed Hastings and software executive March Randolph. Before long, in 1999 Netflix launched its major line of business, the online subscription service, which radically changed the way consumers viewed movies and television. For a young company in an innovative and growing industry, Netflix has set itself up for a tremendous journey. The company has had much success due to its adaption of a modern business model and strength in operations management. Its continued reliance on and improvements of operation management principles is necessary to continue growing and bringing in profits.

Berkeley College Midtown Campus Assignment # 1 on NETFLIX, Inc. Submitted to: Professor Dr. Joel Reichart School of Business Management Degree Program Subject: BUS 451 Business Strategy & Policy Berkeley College Submitted By: Brittany O’Brien Date of Submission: 5 April 2016 Student Name: Brittany O’Brien Company Name: Netflix Inc. Industry: Video Tape and Disc Rental NAICS code: 532230 Market: NASDAQ Global Select Market Symbol: NFLX Revenue (Latest YR): $6,779,510,000 Company Profile: Netflix, Inc. is a U.S. based leading company that operates as an online movie rental subscription service provider who went public in 2002. Netflix initially started off as a DVD rental service through mail only, then later initiated streaming around 2007 in the U.S., and internationally around 2010. Netflix subscribers can instantaneously watch a series of movies and a variety of TV shows streamed from their website online to users TVs, and other devices. Netflix operates its business through domestic DVD, domestic streaming, and international streaming. Netflix subscribers typically pay $7.99 once per month for unlimited use of the website features. Netflix obtains their streaming’s from Amazon Web Services and other communication delivery networks for their streamed content and direct purchases from a nationwide network of U.S. shipping centers. Netflix Inc., headquarter is at Los Gatos, California. Two entrepreneurs Reed Hastings and Marc Randolph founded Netflix on August

NETFLIX: CASE STUDY ANALYSIS Kevin Graham Capstone Project Minot State University July 27, 2015 Table of Contents Synopsis/Executive Summary…………………………………………………………………….3 Purpose of the Case Study………………………………………………………………………...3 Field of Research………………………………………………………………………………….4 The Netflix Business Model………………………………………………………………………5 Theoretical Framework: Porter’s Five Competitive Forces……………………………………...6 Issues and Summary Findings…………………………………………………………………….7 SWOT Analysis…………………………………………………………………………………...8 Porter’s Five Forces and Netflix…………………………………………………………………15 Major Problem Summary………………………………………………………………………...21 Alternative Problems to Face Solutions………………………………………………………….22 Conclusions………………………………………………………………………………………29 Recommendations………………………………………………………………………………..30 Implementation…………………………………………………………………………………..32 Weakness of the Case Study……………………………………………………………………..37 Appendix 1……………………………………………………………………………………….38 Appendix 2………………….……………………………………………………………………39 Appendix 3..……………………………………………………………………………………...40 References………………………………………………………………………………………..42 NETFLIX: CASE STUDY ANALYSIS Synopsis/Executive Summary Purpose of the Case Study Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

The Evolution of the Netflix Empire Netflix has quickly become a household name by saturating the market with a new age way to rent movies. Established in 1998, Netflix geared its business to provide consumers with quick and easy access to their favorite movies without the need to leave their homes. As the business developed and other popular sites, such as YouTube, began to gain popularity Netflix entered the market of streaming online content. During the infancy of their instant service Netflix still relied heavily on mailing DVDs to offer their customers a wider range of movies and TV shows. However, as their steaming library grew the mindset of the company began to shift. As they transitioned away from their mailing movies, key

Netflix | Strategic Analysis (Nov 2007) | | Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great variety of film offerings. Now they want to leverage their strengths to enter into the Video on Demand market

A strategy is a plan that is targeted over the long run. Business level strategies refers to strategic alternatives that an organization chooses from as it conducts business in a particular industry or market (Griffin,2002). A corporate level strategy means that a company manages its operations simultaneously across many industries

Netflix’s Effect on American Culture Netflix is a global provider of streaming movies and TV series. Netflix was founded in 1997 by Reed Hastings and Marc Dolph. It started out as a DVD-by-mail service in America in 1998, and in 2007 began streaming. Over the years the company has become very popular. Netflix has many effects on American culture that we don't realize.

BUSINESS / CLIENT DESCRIPTION NETFLIX’S HISTORY & BUSINESS Marc Randolph and Reed Hastings founded Netflix in 1997 in California. It is said that the idea came to Hastings after having to pay $40 in overdue fines for returning Apollo 13 to late. Netflix was originally a website (launched on August 29, 1997) that rented DVDs through rental posting and a traditional pay-per-rental model. In the early 2000, Netflix dropped this model and

Starting off as a mail-only service in August of 1997, the service rapidly bloomed into an online, paid source for thousands of movies, series, and other TV shows. Although their streaming option is the most favored, Netflix still offers users the opportunity to order DVDs and other forms of tangible movies. All in all, Netflix holds a multitude of positive and negative effects on society, both which include instant accessibility, immediate forms of entertainment, binge-watching, and unproductivity. Lastly, Netflix may soon become an overwhelmingly large company that takes the television and video distribution industries by storm due to its growing popularity and its ability to be cheaper than regular cable