Netflix Research Paper

1. Netflix’s original marketing strategy offered several flat-rate monthly subscription options; in which, members could stream movies and shows via the Internet or have disks sent to their homes in a pre-paid and pre-addressed envelope. Free from the despair of due dates and late fees, members could keep, up to, eight movies at a time. Upon the return of a disk, Netflix would automatically mail out the next movie from the customer’s video queue. Members were able to change and update their queues as frequently as they liked. The sheer innovation of Netflix’s strategy encouraged several competitors to enter the market to compete directly,

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 has revolutionized how we watch television. Personally I think it is for the better,” daid Byrne. “If I have two hours before I need to leave the house I can watch two to four episodes of something and it let's me think about where the story is going while I am at work.”

Netflix gains thousands of subscribers every year, compared to where it was a few years ago, many theaters believe that movies available to stream at home is a big threat. Home media has changed drastically over the decades, there are no more video rental shops, thanks to how much technology and the Internet have improved over the past few years. Throughout most of our lives, we have accepted the fact that whenever a movie comes out, the only way to watch it is through theater first. With the innovation of Netflix, we are able to experience entertainment in a different way.

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).

Though Netflix’s services have always been available for a television, the release of new products such as the iPad or smartphone allowed consumers to watch “on the computer, tablet, or cell phone” (Dupont 2). Not only did these technologies help popularize streaming, according to Jeff Kagan, they placed the company in the hands of the consumer and allowed them to stream “when they want, where they want” (2). When delivering a product to a subscriber base with vastly different tastes, it is important that the main structure of the product attempts to give each customer the same experience. One of Netflix’s many attributes that sets them apart from their competitors is their “superior customer service, powerful recommendation engine, and great, habit-forming product” (Knee 4). Both of these aspects have helped to broaden the marketability of the product as well as ensure that their consumer base stays content and attached to their

Netflix, Inc. is a television network which provides streaming of movies, television shows, and original series. It was founded by Reed Hastings on August 1997, and its headquarters are located in Los Gatos, California. Netflix functions in Domestic Streaming, International Streaming, and Domestic DVD. Its content, which is received from several studios and content providers, can be streamed through Internet-connected screens, such as television or mobile phones. In April 2017, it had about 100 million members in 190 different countries.

Netflix is one of the most popular ways to stream television shows and movies, without paying the high cost of cable. Netflix offers several subscriptions plans which allows customers to rent DVD’s and stream movies instantly, but this service has recently declined primarily because the increase price for this subscription. I personally know a few people who have canceled their cable subscription and started using streaming companies in order to save money. I believe that this idea will become increasingly popular within the next few years and cable companies will have to lower their prices in order to stay competitive. The popularity of Netflix is combined with its strengths and weakness.

Netflix is the world’s leading Internet television network ("Netflix: Overview"). It has over 100 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day including original series, documentaries, and film features ("Netflix: Overview"). As a member, you can watch as much as you want, anytime you want and anywhere on an Internet-connected screen ("Netflix: Overview"). You can play, pause and resume watching without any commercials or commitments. Thus, with this streaming service, you can watch unlimited content ("Netflix: Overview").

Thesis and Preview: Netflix is a giant in the world of online streaming. With shows like “Orange is the New Black” and “House of Cards”, Netflix is really making a name for itself. However, Netlflix hasn’t always been as successful as it is today.

Before becoming a force in the movie streaming and internet TV industry, Netflix was originally in the movie rental industry. With competitors such as Blockbuster, Hollywood Entertainment and Redbox, Netflix rose to be the leading Internet provider for Internet television and streaming thus forcing Blockbuster and Hollywood Entertainment out of business. With the transformation of consumer viewing in the American television industry, Netflix has over 75 million members who stream more than 125 million hours of television shows and movies per day (Statista, 2016). Their repertoire includes movies and original series that allow consumers to view at anytime and on any screen in which Internet connectivity to the Internet is provided. In addition, Netflix continues to deliver DVDs within the United States to the homes of consumers.

Launched in1997, it originally offered DVD rental on a pay-per-use basis. In 1999, the company moved to a subscriptionbased model. In January 2008, Netflix began offering unlimited steaming content. Initial approach aimed to position the company as a low-cost video rental service competing with the brick and mortar stores and movie theaters. Since the product they were offering was not easy to differentiate, Netflix began focusing more on the services provided with the DVD rental rather than the price alone. Netflix introduced a No-Due-Dates-No-Late-Fees model and offered an

Netflix is an existential threat for the TV industry. It is allowing consumers to watch what they want, at the time they want. Members can play, pause and resume watching, all without commercials or commitments. In addition, consumers can watch the entire seasons of their favorite shows at once on Netflix, instead of having to wait for the once-a-week programming model of the TV networks. Finally, Netflix is offering the consumer the possibility to watch their shows/movie

Netflix is revolutionary company operating in an incredibly dynamic industry populated by both longstanding and new competitors. In one hand, Netflix has partnered with movie and television studios to provide access to feature-length movies and episodic TV shows in the same manner that existed when the medium was designed- DVD rental. In the other hand, Netflix is operating with growing role of computer-enabled devices and data transmission systems in our lives, in mind. They allow users to view media content in virtually any location with a power source and Wi-Fi connection. As a provider, Netflix has evolved with developing technology and have adapted to changes in content consumption. Hence, Netflix has had a great influence on the home entertainment environment and on the profitability of their competition.

Netflix is the inevitable future of TV that we have all been waiting for. It all started in 1997, when Reed Hastings and Marc Randolph co-found “Netflix”. Then, two short years later, Netflix gets launched. If we skip ahead into 2007, you can now watch Netflix on your personal computer. Between 2008 and 2010 users were became able to watch Netflix through Xbox, DVD players, PS3, and even their smart phones. As of 2014 they have 48 million users. In spring of 2012 they started to create their own “Netflix originals”. If they can do all of that in 17 years, then imagine what it will be like in 10 more years. Now this isn’t just a band in the garage living