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Humphries, M. (Designer). (2013, May 01). [Web Photo]. Retrieved from http://www.geek.com/news/netflix-will-stopstreaming-1794-titles-by-the-end-of-may-1553782/

Netflix
By: 2014 Music Business Graduates:	

Brendan Blish, Daniel Ford, Desmond Ford, Alainne Gotch & Ammie Villareal
Environmental
Scanning
Netflix is the world’s leading Internet television network with over 40 million members in 41 countries enjoying more than one billion hours of TV shows
and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on
nearly any Internet-connected device. Members can play, pause and resume watching their favorite shows and movies, all without commercial or
commitments. 
In the near future, Internet television will replace the linear TV we all are accustomed to watching today. Netflix was the top performer on the S&P 500 with
a near 300% return, while just two years ago they were the lowest performer on that same chart. Growing is just one of the many things Netflix is doing
right.
Netflix targets a wide variety of consumers due to their mass appeal. In regards to demographics, Netflix targets both males and females between the
ages of 17 and 60. Netflix has a wide variety of products targeted towards the lower-middle class and up. Netflix also offers movie and television titles
that appeal to many racial/ethnic groups with its vast amount of foreign and international films.
As Netflix grows so do it’s many collaborators. They most recently collaborated with comic book juggernauts, Marvel Comics, on multiple short series
pertaining to popular Marvel superheroes. They also have had a long-standing partnership with NBC to stream their shows, which brings plenty of network
hits to their services. Most recently, Netflix has been streaming exclusive series including the newest season of the cult comedy hit, Arrested
Development.
Business Climate
Challenges

Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar
streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their
service. So the question is, HIT “Which service has the best content?”
Challenges

Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar
streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their
service. So the question is, HIT “Which service has the best content?”
Challenges

Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar
streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their
service. So the question is, HIT “Which service has the best content?”
Challenges

Sulemanzp. (Photographer). (2011, April 29). Screenshot [Web
Photo]. Retrieved from http://hitechanalogy.com/
download-hbo-go-app-brings-over-1400-hbo-showsmovies-to-iphone-ipad-and-ipod-touch/

Whitney, L. (Photographer). (2013, March 25). Screenshot [Web
Photo]. Retrieved from http://news.cnet.com/
8301-1023_3-57576098-93/zombieland-tv-series-pilotto-rise-on-amazon-prime/

Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar
streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their
service. So the question is, HIT “Which service has the best content?”
Challenges

Which Service
has the Best
Content?
Sulemanzp. (Photographer). (2011, April 29). Screenshot [Web
Photo]. Retrieved from http://hitechanalogy.com/
download-hbo-go-app-brings-over-1400-hbo-showsmovies-to-iphone-ipad-and-ipod-touch/

Whitney, L. (Photographer). (2013, March 25). Screenshot [Web
Photo]. Retrieved from http://news.cnet.com/
8301-1023_3-57576098-93/zombieland-tv-series-pilotto-rise-on-amazon-prime/

Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar
streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their
service. So the question is, HIT “Which service has the best content?”
In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is
simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that
Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question,
“Which service has the best content?”
“I told Worm you can’t
lose what you don’t put in the
middle, but you can’t win much
either.” -Matt Damon, Rounders

In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is
simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that
Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question,
“Which service has the best content?”
“I told Worm you can’t
lose what you don’t put in the
middle, but you can’t win much
either.” -Matt Damon, Rounders

Solution

In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is
simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that
Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question,
“Which service has the best content?”
“I told Worm you can’t
lose what you don’t put in the
middle, but you can’t win much
either.” -Matt Damon, Rounders

Solution

Bring Forth World Equality [Web Photo].
Retrieved from http://
bringingforthworldequality.files.wordpress.
com/2012/03/spend-money1.jpg

In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is
simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that
Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question,
“Which service has the best content?”
“I told Worm you can’t
lose what you don’t put in the
middle, but you can’t win much
either.” -Matt Damon, Rounders

Which service has the
best content?

Solution

Bring Forth World Equality [Web Photo].
Retrieved from http://
bringingforthworldequality.files.wordpress.
com/2012/03/spend-money1.jpg

In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is
simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that
Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question,
“Which service has the best content?”
Strategy Formulation
Strategy Formulation
Strategy Formulation
Strategy Formulation
Legal
Costs & Revenue Generated
(in Billions)
10

7.5

5

2.5

0

2011

2012

2013

Money Spent on New Content

2014

2015

2016

Revenue

Looking at our financials we can see the following. With our proposal, Netflix will increase their spending on new content from 2.5 billion in 2011, to 5
billion in 2016. This increase in spending will take our revenue from 2.7 billion in 2011, to just under 10 billion dollars by the end of 2016.
Costs & Revenue Generated
(in Billions)
10

7.5

5

2.5

0

2011

2012

2013

Money Spent on New Content

2014

2015

2016

Revenue

Looking at our financials we can see the following. With our proposal, Netflix will increase their spending on new content from 2.5 billion in 2011, to 5
billion in 2016. This increase in spending will take our revenue from 2.7 billion in 2011, to just under 10 billion dollars by the end of 2016.
Costs & Revenue Generated
(in Billions)

Looking at our financials we can see the following. With our proposal, Netflix will increase their spending on new content from 2.5 billion in 2011, to 5
billion in 2016. This increase in spending will take our revenue from 2.7 billion in 2011, to just under 10 billion dollars by the end of 2016.
Netflix business proposal
Netflix business proposal
Netflix business proposal
Netflix business proposal
Netflix business proposal
Netflix business proposal
Netflix business proposal
Netflix business proposal
Netflix business proposal

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Netflix business proposal

  • 1. Humphries, M. (Designer). (2013, May 01). [Web Photo]. Retrieved from http://www.geek.com/news/netflix-will-stopstreaming-1794-titles-by-the-end-of-may-1553782/ Netflix By: 2014 Music Business Graduates: Brendan Blish, Daniel Ford, Desmond Ford, Alainne Gotch & Ammie Villareal
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 12. Netflix is the world’s leading Internet television network with over 40 million members in 41 countries enjoying more than one billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected device. Members can play, pause and resume watching their favorite shows and movies, all without commercial or commitments. In the near future, Internet television will replace the linear TV we all are accustomed to watching today. Netflix was the top performer on the S&P 500 with a near 300% return, while just two years ago they were the lowest performer on that same chart. Growing is just one of the many things Netflix is doing right.
  • 13. Netflix targets a wide variety of consumers due to their mass appeal. In regards to demographics, Netflix targets both males and females between the ages of 17 and 60. Netflix has a wide variety of products targeted towards the lower-middle class and up. Netflix also offers movie and television titles that appeal to many racial/ethnic groups with its vast amount of foreign and international films.
  • 14. As Netflix grows so do it’s many collaborators. They most recently collaborated with comic book juggernauts, Marvel Comics, on multiple short series pertaining to popular Marvel superheroes. They also have had a long-standing partnership with NBC to stream their shows, which brings plenty of network hits to their services. Most recently, Netflix has been streaming exclusive series including the newest season of the cult comedy hit, Arrested Development.
  • 15.
  • 17. Challenges Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their service. So the question is, HIT “Which service has the best content?”
  • 18. Challenges Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their service. So the question is, HIT “Which service has the best content?”
  • 19. Challenges Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their service. So the question is, HIT “Which service has the best content?”
  • 20. Challenges Sulemanzp. (Photographer). (2011, April 29). Screenshot [Web Photo]. Retrieved from http://hitechanalogy.com/ download-hbo-go-app-brings-over-1400-hbo-showsmovies-to-iphone-ipad-and-ipod-touch/ Whitney, L. (Photographer). (2013, March 25). Screenshot [Web Photo]. Retrieved from http://news.cnet.com/ 8301-1023_3-57576098-93/zombieland-tv-series-pilotto-rise-on-amazon-prime/ Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their service. So the question is, HIT “Which service has the best content?”
  • 21. Challenges Which Service has the Best Content? Sulemanzp. (Photographer). (2011, April 29). Screenshot [Web Photo]. Retrieved from http://hitechanalogy.com/ download-hbo-go-app-brings-over-1400-hbo-showsmovies-to-iphone-ipad-and-ipod-touch/ Whitney, L. (Photographer). (2013, March 25). Screenshot [Web Photo]. Retrieved from http://news.cnet.com/ 8301-1023_3-57576098-93/zombieland-tv-series-pilotto-rise-on-amazon-prime/ Netflix challenges lie in a number of forms but the most threatening is their competitors. HIT Amazon Prime HIT HBO Go HIT and Vudu all offer similar streaming services to Netflix and pose a direct threat. HIT All these services have similar content to offer as well as shows that are exclusive to their service. So the question is, HIT “Which service has the best content?”
  • 22. In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question, “Which service has the best content?”
  • 23. “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” -Matt Damon, Rounders In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question, “Which service has the best content?”
  • 24. “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” -Matt Damon, Rounders Solution In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question, “Which service has the best content?”
  • 25. “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” -Matt Damon, Rounders Solution Bring Forth World Equality [Web Photo]. Retrieved from http:// bringingforthworldequality.files.wordpress. com/2012/03/spend-money1.jpg In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question, “Which service has the best content?”
  • 26. “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” -Matt Damon, Rounders Which service has the best content? Solution Bring Forth World Equality [Web Photo]. Retrieved from http:// bringingforthworldequality.files.wordpress. com/2012/03/spend-money1.jpg In the movie Rounders, Matt Damon says, “I told Worm you can’t lose what you don’t put in the middle, but you can’t win much either.” Our solution is simple, we a have to spend money to make money. By spending money not just on increasing the quantity HIT of our content but also the quality that Netflix has to offer, we will increase our subscribers and in turn, increase our revenue. HIT This will also ensure that Netflix is the answer to the question, “Which service has the best content?”
  • 31.
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  • 38. Legal
  • 39.
  • 40. Costs & Revenue Generated (in Billions) 10 7.5 5 2.5 0 2011 2012 2013 Money Spent on New Content 2014 2015 2016 Revenue Looking at our financials we can see the following. With our proposal, Netflix will increase their spending on new content from 2.5 billion in 2011, to 5 billion in 2016. This increase in spending will take our revenue from 2.7 billion in 2011, to just under 10 billion dollars by the end of 2016.
  • 41. Costs & Revenue Generated (in Billions) 10 7.5 5 2.5 0 2011 2012 2013 Money Spent on New Content 2014 2015 2016 Revenue Looking at our financials we can see the following. With our proposal, Netflix will increase their spending on new content from 2.5 billion in 2011, to 5 billion in 2016. This increase in spending will take our revenue from 2.7 billion in 2011, to just under 10 billion dollars by the end of 2016.
  • 42. Costs & Revenue Generated (in Billions) Looking at our financials we can see the following. With our proposal, Netflix will increase their spending on new content from 2.5 billion in 2011, to 5 billion in 2016. This increase in spending will take our revenue from 2.7 billion in 2011, to just under 10 billion dollars by the end of 2016.