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Netflix – A Game Changer in
Internet Streaming Media
ASHISH ARORA
1
Outline
 Netflix Organization Description
 Company Emergence
 Collaboration with different industries
 Integrating dif...
Outline
 The Competitive Environment
 Competitors
 Customers
 Partners
 Economics
 Financial Laddering of Netflix
 ...
Netflix Organization Description
4
Netflix – A Streaming Media Company
 American Multinational Company
 Changing the business of television
 Provides on d...
Emergence of Netflix
 Founded in 1997 by Reed Hastings and Mark Rudolph
(Rudolph left in 2002)
6
1997
Founded
2000
person...
7
The Technology
Netflix
Software
Recommendati
on Algorithm
UDP- Chain
Technology
Cassandra
Open Connect
CDN
Netflix on
Andr...
Netflix Recommendation Algorithm
 Many recommendation algorithms at Netflix ranging
from personalized ranking to page opt...
Adaptive Bitrate Streaming
Based On HTTP
Works by detecting a user's bandwidth and CPU capacity in real time and
adjusting...
Other Important Technology Areas of
Netflix
Big Data
Technologies used in
Netflix
Running All of Netflix Streaming
Infrast...
The Competitive Environment
12
The Competitive Environment For
Netflix
13
Blockbuster – A Competitor which
lost the market
14
Top Three Competitors of Netflix
15
Economics
16
Market Analysis of Netflix
 Netflix market has had a consistent growth trend over the
years.
 Sales for Netflix has grow...
Market Capitalization Of Netflix in
Terms of its subscribers
18
Netflix –The Financials
Initial Startup Cost - $2.5 million
19
How Netflix generates revenue
 Generates Revenue through the monthly membership fees for its
content streaming services a...
Revenue Generation through In-
House Products
 The In-House Products of Netflix like “House of Cards”
and “Orange is the ...
Organizational Implementation
22
Netflix Organization Structure
Reed Hastings, Founder and
CEO
Kelly Bennett, Chief
Marketing Officer
Netflix
Tawni Cranz, ...
Key Success Factor of Netflix
 Know what kind of company you are
 Time your opportunity
 Have good relationships with c...
Risk Factors For Netflix
 Attract and Retain Members.
 The long-term and fixed cost nature of Netflix content
licenses m...
Proposal to make Netflix product
to be better
 Incognito Mode
 Integrated Social Media
 Playlists
 Bandwidth Indicator...
REFERENCES
 http://www.netflix.com/
 http://netflixcompanyprofile.weebly.com/
 https://en.wikipedia.org/wiki/Netflix
 ...
THE END
28
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Netflix – A Game Changer in Internet streaming media

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Netflix – A Game Changer in Internet streaming media

  1. 1. Netflix – A Game Changer in Internet Streaming Media ASHISH ARORA 1
  2. 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. 2
  3. 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 3
  4. 4. Netflix Organization Description 4
  5. 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. 5
  6. 6. Emergence of Netflix  Founded in 1997 by Reed Hastings and Mark Rudolph (Rudolph left in 2002) 6 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
  7. 7. 7
  8. 8. The Technology Netflix Software Recommendati on Algorithm UDP- Chain Technology Cassandra Open Connect CDN Netflix on Android Adaptive Bitrate Streaming Technology 8
  9. 9. Netflix Recommendation Algorithm  Many recommendation algorithms at Netflix ranging from personalized ranking to page optimization.  Every thing is recommendation 9
  10. 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 10
  11. 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 11
  12. 12. The Competitive Environment 12
  13. 13. The Competitive Environment For Netflix 13
  14. 14. Blockbuster – A Competitor which lost the market 14
  15. 15. Top Three Competitors of Netflix 15
  16. 16. Economics 16
  17. 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 17
  18. 18. Market Capitalization Of Netflix in Terms of its subscribers 18
  19. 19. Netflix –The Financials Initial Startup Cost - $2.5 million 19
  20. 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. 20
  21. 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. 21
  22. 22. Organizational Implementation 22
  23. 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 23
  24. 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 24
  25. 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 25
  26. 26. Proposal to make Netflix product to be better  Incognito Mode  Integrated Social Media  Playlists  Bandwidth Indicator  Ratings Comparisons 26
  27. 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/ 27
  28. 28. THE END 28
  • Riyapatel185

    Feb. 12, 2019
  • HamzaAhmed54

    Mar. 14, 2016

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