Netflix Case

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

Netflix, an internet television network that is revolutionizing the way we watch TV series and movies without having to leave the comfort of our couch has over 50 million subscribers in more than 40 countries.

The downturn of the economy has taken away many peoples disposable income and Netflix’s limited online library may have caused customers to question if it was worth it or not.

These first set of changes, cost the company one million customers and a ton of negative press in social media; including 12,000 comments of dissatisfaction. However, at this point, Netflix’s stock prices still rose. Unfortunately, on September 18, 2011, Hastings posted a new announcement to the company blog, trying to separate and over-complicate the two services. He then reversed the changes, in yet another memo, on October 11, 2011. By this point, however, it was too late; more displeased customers had left and Netflix’s stock prices had plummeted. Personally, I believe this situation caused a short-term public relations nightmare; to the customers who were affected at that time. Netflix retained over thirteen million subscribers; given time, I believe the new generation of customers will still be interested in the services they provide.

Better quality – Netflix is working on producing better streaming quality with the available strength and quality of the consumers Internet connection with a data-saving mode in their mobile app.

Netflix introduced an online streaming service in 2007. At the time of its introduction, the streaming service had a catalog of 1,000 movies and TV shows (Helft, 2007). From 2008 to 2010, Netflix partnered with different electronic companies to provide streaming through Xbox 360, Blu-ray players, PS3, smart televisions, Apple devicesm and Nintendo Wii. (Netflix) Since 2010, Netflix began to launch the service outside the United States with Canada being the first country. In 2016, Netflix became available all over the world (Netflix).

The following is a case study of Netflix, Inc. an American-based company that provides the streaming of online media to consumers in North America, South America, and parts of Europe. This case study will provide a brief overview of the company’s history along with four present-day challenges that the company will face as it tries to stay ahead of the competition. In its discussion of the present-day challenges that Netflix, Inc. faces the discussion will also relate the proposed challenges to the managerial challenges of globalization, diversity, and ethics. After each of the four anticipated challenges have been addressed then this paper will provide an analysis of the steps that Netflix, Inc. has already taken to keep the

The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in

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

“Netflix, Inc. is the world's largest online movie rental service, with more than 10 million subscribers (Netflix Media Center, 2009).”

Many of their competitors have longer operating histories, larger customer bases, greater brand recognition and significantly greater financial, marketing and other resources than Netflix does. Some of their competitors have adopted, and may continue to adopt, aggressive pricing policies and devote substantially more resources to marketing and Web site and systems development than Netflix does. The rapid growth of their online entertainment subscription business since their beginning may attract direct competition from larger companies with significantly greater financial resources and national brand recognition. For instance in 2003 the extremely wealthy Wal-Mart used their online site to launch an online DVD subscription service, Wal-Mart DVD Rentals. With increased competition reduced operating margins may result as well as a loss of market share and reduced revenues. In addition, our competitors may form or extend strategic alliances with studios and distributors that could adversely affect our ability to obtain titles on favorable terms.

As mentioned by the Netflix CEO, Reed Hastings, the core of the company’s business is providing DVD by mail and streaming. Netflix incorporation is in the business of providing on-demand internet streaming entertainment and providing DVD media by mail to many parts of the world. Netflix is the world’s leading internet television network with fifty million members among forty countries such as North America, South America, United Kingdom, Finland, Ireland, Norway, Netherlands, Denmark, and Belgium. This American company started in 1997 with its headquarters based in Los Gatos, California. Subscribers of Netflix are given the ability to experience billions of hours of TV shows and movies per month. The members are allowed to watch

This essay will provide insights and sufficient background to understand Netflix’s success and difficulties the company is facing.

Adhering to its organizational mission, Netflix was able to, over a period of about a decade, force almost all of its competition out of the market. This was the culmination of meeting its set Goals. Netflix core values seemed to evoke a very negative response by the general public at large. Consumers found their ethical means of climbing the corporate ladder abhorrent. This was damaging to Netflix for a period of several years causing investors, consumers, stock holders and product distributors to refuse to continue a business relationship with them. The core strategy for Netflix was to grow their streaming subscription business both domestically and globally. Its stated goal was to continuously improve its customer experience, with a focus on expanding its accessibility of its streaming content, and striving to enhance its users interface. This has been met as to recent by the availability of devices that users can use in the home that will allow direct access to Netflix streaming content directly from Smart TV’s and DVD players. Netflix is continually expanding and extending its streaming service to include services to new streaming capable devices as they are offered on the market while working to do so within the parameters of its consolidated net income and operating segment contribution profit targets. (Netflix) Netflix claims honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal 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