Netflix Case Study for Media Studies A2

1. NetflixSapir Tal

2. Summary
• Netflix inc. is the worlds leading internet television
network with over 57 million members in nearly 50
countries enjoying more than two billion hours of TV
shows and movies per month, including original series,
documentaries and feature films such as House Of
Cards and Orange Is The New Black.
• Members can watch as much as they want, anytime,
anywhere, on nearly any internet-connected screen.
• Member can play, pause and resume watching, all
without commercials or commitments. It also provides
a small business of DVD-by-mail in the US where mail
DVS are sent via permit reply mail.
• Their target market is 17-60 and is currently changing
because of the 'kids' section

3. History
• It was founded by Reed Hasting and Marc Randolph in
1997 in Scotts Valley, California. The CEO invested 2.5
million in startup cask for Netflix.
• It offered DVD home delivery via snail mail. They
introduced monthly subscription service in 1999. They
took a leap of faith during a boom in the economy and
put it place:
– Unlimited Rentals
– Keep 4 DVDs at home at once
• Currently it has 35 warehouses spread around country.

4. History
2000
Netflix launches the
personalized movie
recommendation
system that uses Netflix
members’ ratings to
accurately predict
choices for all
Netflix members.
1997
It was
founded by Reed
Hasting and Marc
Randolph in 1997
in Scotts Valley,
California.
2005
There was a
rapid growing DVD rental s
ervice wherethey gained 4.
2 million subscribers .
2007
Netflix introduces
streaming, which allows
members to instantly
watch television shows
and movies on their
personal computers.
2008
They had 9.4 million subscribers as
of the fourth quarter and Netflix
partners with consumer electronics
companies to stream on the Xbox
360, Blu-ray disc players and TV set-
top boxes.
2011
the firm started
to begin their
own original
programming.
2013
Netflix became available in Europe and literally worldwide
and Netflix garners 31 primetime Emmy nominations
including outstanding drama series, comedy series and
documentary or nonfiction special for “House of Cards”,
“Orange is the new black”, and “The Square” respectively.
House of Cards won three Primetime Emmy Awards. Netflix
was the first internet TV network nominated for the
primetime Emmy.

5. Company Structure
• Netflix is a PLC (Public Limited Company)
meaning that they sell stocks on the market
for a part of a company and in return get
money for retainment. This also means that
they work for themselves and no one else, but
because go their high income that they obtain
I think they are a 'Big American Corporation'
because making a lot of money and globally
producing what production companies are
going as well

6. Company’s Agendas and Business Goals
• Netflix's 'vision' is:
1. Becoming the best global entertainment distribution
service
2. Licensing entertainment content around the world
3. Creating markets that are accessible to film makers
4. Helping content creators around the world to find a
global audience
5. Company values to guide employees' everyday
decisions

7. Programming
• In 2011, Netflix began programming their own original
shows and films and the first was House of Cards. Neftlix,
had never been public about their viewing rate but it got
8.2 out of 10 on Rotten Tomatoes and 76 out of 100 on
Metacritic. So the show seems to be successful in what
they have created but the fact they could make 3 seasons
shows that it has been successful. They also have 4 more
original ongoing shows which are:
1. Lilyhammer
2. Hemlock Grove
3. Orange Is The New Black
4. Marco Polo

8. Sales And Marketing
• They reach 194 millions visitors annually so that
is averagely around 531, 507 per day. It is an
international service
• They use social media to communicate with our
subscribers and the public about our company,
our services and other issues.
• https://www.youtube.com/user/NetflixIR
• https://www.facebook.com/NetflixUK?brand_red
ir=1
• https://twitter.com/netflix

9. Sales And Marketing
107 292 456
857
1,487
2,610
4,179
6,316
7,479
9,400
0
2,000
4,000
6,000
8,000
10,000
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08

10. Sales And Marketing
• Cross-promotional programs with the
manufacturers and sellers of DVD players
• Commercial and radio spots
• Banners and popups
• Free-trial promotion
• Word-of-the-mouth.

11. Finance and Revenue
• In 2010, Netflix increased to 175.70 in stock
share prices bringing its total to 20 million. In
April 2011 in its first quarter they produced a
revenue of 705.7 million

12. Controversies
• Monthly Fee Discourages Membership From
• Less Frequent Movie Watchers
• Lack of Control Over DVD Return Time
• Comparatively Small Movie Library Available to
• Stream
• DVDs Can Arrive Scratched or Broken Due to
• Mailing Process
• Pirating concerns

13. FinanceandRevenue

14. FinanceandRevenue

15. Controversies
• Threats
• Staying power of DVDs
• Contractual restrictions on streaming content
• Bigger competition in the streaming video market
• DVD competition from Red Box, and Blockbuster
• Opinion weblogger Felix Salmon wrote that by 2014, Netflix
couldn't "afford the content that its subscribers most want
to watch" and lost several contracts for streaming movies,
to the point where, according to journalist Megan McArdle,
"its movie library is no longer actually a good substitute for
a good movie rental place"

16. Consumption (22 Jump Street)
• As said before Netflix don’t share viewing
rates so…
• 22 Jump Street recently was put on Netflix

17. Certification and Classification
• 15 in the UK
• On the website Rotten Tomatoes, the film
holds a rating of 84% based on 197 reviews.
• On Metacritic, the film has a score of 71 out of
100, based on 46 critics, indicating "generally
favorable reviews"

18. Source Of Revenue
• October 2014, 22 Jump Street has made $191 million
in North America and $136.5 million in other countries,
for a worldwide total of $327.6 million.
• The film made $5.5 million on Thursday’s night
showings.On its opening day it grossed $25 million,
including the early Thursday showings. In North
America, the film opened at number one in its first
weekend, with $57.1 million. In its second weekend,
the film dropped to number two, grossing an additional
$27.5 million. In its third weekend, the film stayed at
number two an additional, grossing $15.8 million. In its
fourth weekend, the film dropped to number three,
grossing $9.8 million.

19. Spin Offs and Associated Brands
• 21 Jump Street was made
• 23 Jump Street is confirmed to start
development at September 2014
• DVDs created.