Netflix India Case Study

The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes.

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 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 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.

Weaknesses: The early customers will remember the inconsistent changing and modifying of the prices and service options; done back in 2011. This caused the loss of many members, who may remain reluctant to re-join their subscription to Netflix.

Large catalogue of diverse shows and movies – Netflix has a vast collection of international shows and movies that other competitors in the market do not have.

It appears that Netflix has control over the vast majority of the movie rental business. Consumers are renting less than they used to and the convenience that Netflix incorporates into its service, such as online streaming and mail orders eliminates other competitors from considering entering the movie rental business.

Reed Hastings and Marc Randolph co-founded Netflix in Los Gatos, California in 1997. Between 1998-2000, Netflix launched its online rentals, sales, subscription service, and a system of recommendations that can predict a consumer’s choice (Netflix). In May 2002, Netflix announced its first public offering led by Merrill Lynch. They offered over 5 million shares of common stock for $15 per share.

It is recommended that Netflix tackles all of these issues. The company needs new deals with its suppliers, as content is essential to customer satisfaction, and Netflix needs customers for bargaining power. Netflix also

Also Netflix needs to prepare a better plan to recover old customers, gain new customers and make sure that the people who still have Netflix keep it. Establishing a bundle price for both online streaming and DVD rental will allow The Netflix Company to recover some market shares and remain the leading overall digital film company. The recommendations are as follows:

Video-on-demand or VOD, a service that allows users to select and watch videos over the internet, will be one of the greatest innovation as stated in the Netflix case study. It will be a great opportunity for Netflix, but it will also be a challenge to integrate or do away with its current business model. Its current business model is one that relies on the internet and the post service to deliver DVDs to its subscribers. Netflix should carefully enter the VOD market without doing away with its current model. This will allow it to maintain its growing position as a giant in this media industry. In order to better understand Netflix and the problems it faces, we must first identify its strengths. What does Netflix offer its customers that its competitors do not? What differentiates it from its competitors?

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 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

Netflix is recovering from one of the worst self-inflicted corporate marketing gaffes in years. After years of offering an excellent value to customers purchasing its unlimited single DVD and streaming services for only $9.99 a month, Netflix unexpectedly announced that it would be completely separating its DVD service from its streaming service, causing a price increasing of 60% to $15.98 for customers who wanted to keep both services. Overnight, Netflix angered many of its very loyal customers and lost over 800,000 of its 24.6 million members due to the debacle [1]. Adding fuel to the fire, Netflix decided to actually create separate brands and separate websites for the two services, keeping the Netflix name for its streaming services

Over the past 18 years, Netflix has greatly evolved, changing the way movies and television shows are watched. It was founded in 1998 by Marc Randolph and Reed Hastings as a DVD mail-order service. Netflix knew that it had to grow and innovate in order to compete with other big-name movie rental services such as Blockbuster and Redbox. Because of this, both Randolph and Hastings decided to integrate streaming in 2007. Although one could only stream on a desktop or a laptop,