Netflix is an American company that provides streaming media and video on demand. It emerged in 1997 and has since grown to over 50 million users through collaborating with different industries and integrating new technologies. Netflix uses various technologies for its platform including recommendation algorithms, adaptive bitrate streaming, and storing data on Amazon Web Services. It faces competition from companies like Blockbuster but has maintained growth through producing its own content. Netflix generates revenue from monthly subscription fees and has a flat organizational structure with key success factors being creativity and testing new ideas.

1. Netflix – A Game Changer in
Internet Streaming Media
ASHISH ARORA
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2. Outline
 Netflix Organization Description
 Company Emergence
 Collaboration with different industries
 Integrating different technologies in one product
 Technology Involved
 Technologies used in making Netflix Product.
 The Overall IT infrastructure of Organization
 Technologies used by Netflix which is changing streaming media and DVD
industry.
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3. Outline
 The Competitive Environment
 Competitors
 Customers
 Partners
 Economics
 Financial Laddering of Netflix
 Cash flow and Revenue Generated
 Organizational Implementation
 Netflix Organization Structure
 Critical success factor and Major Risks
 Proposal to make Netflix better and handier
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4. Netflix Organization Description
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5. Netflix – A Streaming Media Company
 American Multinational Company
 Changing the business of television
 Provides on demand Internet Media Services and DVD rental
and purchase.
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6. Emergence of Netflix
 Founded in 1997 by Reed Hastings and Mark Rudolph
(Rudolph left in 2002)
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1997
Founded
2000
personalized
movie
recommend
ation system
2005
Reached
4.2 million
subscriber
2007
Moved in
to
Streaming
2015
More than
50 million
users

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8. The Technology
Netflix
Software
Recommendati
on Algorithm
UDP- Chain
Technology
Cassandra
Open Connect
CDN
Netflix on
Android
Adaptive
Bitrate
Streaming
Technology
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9. Netflix Recommendation Algorithm
 Many recommendation algorithms at Netflix ranging
from personalized ranking to page optimization.
 Every thing is recommendation
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10. Adaptive Bitrate Streaming
Based On HTTP
Works by detecting a user's bandwidth and CPU capacity in real time and
adjusting the quality of a video stream
Very little buffering, fast start time and a good experience for both high-
end and low-end connections
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11. Other Important Technology Areas of
Netflix
Big Data
Technologies used in
Netflix
Running All of Netflix Streaming
Infrastructure on Cloud - Amazon Web
Services cloud
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12. The Competitive Environment
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13. The Competitive Environment For
Netflix
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14. Blockbuster – A Competitor which
lost the market
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15. Top Three Competitors of Netflix
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16. Economics
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17. Market Analysis of Netflix
 Netflix market has had a consistent growth trend over the
years.
 Sales for Netflix has grown at an average of 40%
 Netflix has strong gross profit Margins of approx. 54%
which is substantially higher compared to industry
standards
 Netflix has lower credit risk having higher liquidity.
Market Analysis
High Sales
Strong Profit
Margin
Lower Credit
Risk
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18. Market Capitalization Of Netflix in
Terms of its subscribers
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19. Netflix –The Financials
Initial Startup Cost - $2.5 million
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20. How Netflix generates revenue
 Generates Revenue through the monthly membership fees for its
content streaming services and DVD by mail service.
 Content acquisition is an important part of Netflix business.
 For content delivery Netflix utilizes its own content delivery network
known as Open Connect.
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21. Revenue Generation through In-
House Products
 The In-House Products of Netflix like “House of Cards”
and “Orange is the New Black” have provided strong
customer base with over 60 Million customers.
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22. Organizational Implementation
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23. Netflix Organization Structure
Reed Hastings, Founder and
CEO
Kelly Bennett, Chief
Marketing Officer
Netflix
Tawni Cranz, Chief
Talent Officer
Jonathan Friedland, Chief
Communications Officer
Neil Hunt, Chief
Product Officer
David Wells, Chief
Financial Officer
Organization follows a flat structure
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24. Key Success Factor of Netflix
 Know what kind of company you are
 Time your opportunity
 Have good relationships with content providers
 Test a lot
 Price the product well
 Promote creativity from within
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25. Risk Factors For Netflix
 Attract and Retain Members.
 The long-term and fixed cost nature of Netflix content
licenses may limit operating flexibility.
 Not able to manage change and growth of business.
 Relying upon Amazon Web Services to operate certain
aspects of Netflix service
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26. Proposal to make Netflix product
to be better
 Incognito Mode
 Integrated Social Media
 Playlists
 Bandwidth Indicator
 Ratings Comparisons
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27. REFERENCES
 http://www.netflix.com/
 http://netflixcompanyprofile.weebly.com/
 https://en.wikipedia.org/wiki/Netflix
 http://techblog.netflix.com
 https://www.quora.com
 http://www.investopedia.com
 http://www.geek.com/
 http://finance.yahoo.com/
 https://www.google.com/
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28. THE END
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