See how Netflix broke with the dominant industry logic and revolutionised the way we watch and rent movies & tv shows! Discover how to innovate your business with the 55 Business Model Patterns! Based on the bestselling St. Gallen Business Model Navigator by Oliver Gassmann, Karolin Frankenberger & Michaela Csik

1. www.bmilab.com
Netflix: watch TV shows & movies
anytime, anywhere
Discover how to innovate YOUR Business
with the 55 Business Model Patterns
Based on the St Gallen Business Model Navigator

2. www.bmilab.com
Did you know that 90% of the most
successful companies are based on
only 55 Business Model Patterns?
That means that innovation is mostly
built on the recombination of
already existing ideas.
Want to learn more about the
patterns and the process? Check out
our Uber Slideshare

3. www.bmilab.com
Now, see how Netflix innovated its industry

4. www.bmilab.com
First, see how movie rentals used to work
WHO WHAT
HOW WHY
- People looking for
entertainment in their free time
- People that missed a certain
movie in the theaters
- Movie rental store
- DVDs are rented according to
availability at the store
- Store offers movies months
after exhibition in movie
theatres
- Customer picks up and
returns DVDs in the store
- One time sign up fee
- Fee for rented movie
- Penalty fee for delayed
return
- Sales of popcorn and candy

5. www.bmilab.com
Now, Meet Netflix!
WHO WHAT
HOW WHY
- People looking for
entertainment
- TV series fans
- Online streaming platform
that offers recently released
movies and TV series
- Offers exclusive series as
well
- Website and app
- Available in a large range of
devices
- Licensing agreement with
movie producers
- Monthly fee
- No charge per movie
watched
- Low operational costs

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But HOW did Netflix innovate?

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To Find out, let’s see Which Patterns Were Used

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#11 The Digitalization Pattern
HOW NETFLIX DOES IT: Netflix offers an
online platform instead of a physical store
in which movies can be streamed instead
of rented.

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#15 The Flatrate Pattern
HOW NETFLIX DOES IT: Netflix charges
a monthly fee that allows the client to
watch unlimited movies and TV shows

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#25 The Leverage Customer Data Pattern
HOW NETFLIX DOES IT: By keeping
track of what every customer watches,
Netflix algorithm selects movies that its
users are more likely to enjoy and suggest
a customized list to each one of them,
enhancing customer experience

11. www.bmilab.com
WANT TO LEARN MORE?
Yes, we know, we only
gave you a small taste
of what’s to come!
And that was a piece of
cake, wasn’t it? Easy,
but delicious!
If you’re still hungry for
more…

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Visit www.bmi-lab.ch and
discover more about Business
Model Innovation!
PS.: No real cake included! But more juicy information ;)

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WHERE DOES IT ALL COME FROM?
Of course, there was a
lot of research behind
the pattern cards
The result of it is this
book to the right: The
Business Model
Navigator!
by Oliver Gassmann, Karolin
Frankenberger & Michaela Csik