Netflix Evaluation

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 does not allow customers to watch all released movie on demand. There are some movie that customer cannot instantly watch. If Netflix developed streaming service and figure out a problem of coexisting between rentals and streaming service, Netflix can create competitive advantage.

Netflix founder, Reed Hastings, recognized an unfulfilled need in the movie rental industry and started Netflix to provide customers with the ability to receive movies through the mail and not pay any late fees which were prevalent at the time with companies like Blockbuster (Kotler & Keller, 2009). Netflix has continued to expand its service offerings but providing members with the ability to download movies directly without any additional fees.

Netflix followed a very well structured International strategy by planning their mission statement which is mainly directed to end users. “For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.”

The third issue affecting Netflix is the age of movies that they offer to their customers. Netflix cannot deliver the newest movie titles online because they are not offered through VOD for at least a month after they come out on DVD. This is a huge disadvantage to their customers that exclusively use Netflix’s online service. This is the only advantage that Blockbuster still has over Netflix, because if someone wants to see a movie the day that it comes out on video then

With Netflix thriving and gaining so many new customers while still investing so much into their streaming segment of the business, it would be expected that the company would also invest in their physical DVD content as well. However, this was not the case. In the first two quarters of 2011, Netflix had invested less and less, $22 million and $19 million, respectively, in their DVD content, compared to the $32 million the company had invested in the fourth quarter of 2010.

Netflix is able to offer its customers a flat monthly fee for services, no contract requirement, no late fees, a large variety of television shows and movies, in a convenient way, at a reasonable price.

For this paper, I chose to analyze Netflix as it piqued my interest more than others. Netflix is one of the leading Internet streaming media that provides entertainment primarily through movies, series, and documentaries. For monthly subscription price of between $7.99 and $11.99, Netflix users from all over the world have the privilege to instantly access movies and television shows streamed over the Internet on any of their devices including laptops, tablets, iPads, or even smartphones. Netflix’s vision statement says, “Becoming 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” (Farfan 2015).

Netflix inventory of approximately 75,000 is significantly larger than the average video rental store. The average video rental store has approximately 5,000 titles. Traditional video rental stores rarely stock sufficient copies of popular releases to meet demand. Customers unsuccessfully seeking a particular title may leave without making a selection. The large inventory of creates added customer value through

Netflix previously had a plan in which it included both online streaming, as well as unlimited DVDs by mail, 4 out at a time, for $9.99 a month (Gregory, 2011). However, in July of 2011, CEO, Reed Hastings, announced that they were going to separate the online and DVDs plan and charge

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.

Being in the spotlight, there is no doubt that there will be competitors from future companies that is trying to compete in the Video-On-Demand streaming market. There are few others popular streaming services offered for the consumers to choose other than Netflix such as Amazon, Hulu TV, HBO Now and also Youtube TV to name a few. This streaming company offers similar services like Netflix with their very own way and attraction. For example, Hulu TV offers their customers $5.99 monthly for a basic plan while Netflix offers for $7.99 monthly for a basic plan (Blank, 2017). The price range offered for every company differed although it only differs in a small gap. Lastly, Netflix is amazingly popular in the United States of America market and in the third quarter of 2017 it has 52.77 million US subscribers (Hayes, 2017). When Netflix announce its expansion to other 130 countries outside US, international fans are not impressed by the move (Russell, 2017). Viewing preferences from each country differ and Netflix need to have a wide library content to cater the needs of its international

In Netflix’s own description of its vision for sustainable long-term future, the company describes a few critical elements necessary for growth [Netflix.com]. Its vision encompass the evolution of internet TV, replacement of “linear TV” by the internet TV, development of interactive applications, and enhancement of streaming capability to virtual limitless access capability.

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

Netflix, an addictive media streaming concept born in August of 1997, has revolutionized the way in which we view films and television series. The appealing and amusing service wholly encompasses a wide range of aspects such as its own plethora of original series, video-on-demand titles, rentable DVDs, and even offers its users the ability to watch and live stream content from anywhere they please. Starting at merely $7.99 a month, the streaming service is affordable, accessible, and an overall satisfactory form of entertainment that has expanded worldwide and is continuing to reach a vast majority, all while impacting society is a multitude of negative and positive ways.