Netflix was founded in 1997 by Reed Hastings and Marc Randolph to create an online DVD rental service. It launched in 1998 offering 900 movie titles for rental by mail. By 2013, Netflix had grown to over 36 million subscribers who streamed 2 billion hours of content per month. Netflix's mission is to become the leading global streaming service through expanding its library of exclusive original content available on any internet-connected device.

2. INTRODUCTION
• Netflix was founded by Reed Hastings and Marc Randolph in 1997. Both of them were
technology enthusiasts who had previous experience of setting up websites and
running them successfully. Now they had the idea of creating a website where it would
be easy for people to buy and rent DVD’s sitting at their homes. Hastings invested $2.5
million in order to get the business started in a big way.
• The DVD player was a luxury in the American Household but with the DVD, picture
quality was much better. It was also easy to ship these DVD’s as they were small in size
and weighed very less. It cost the company only a single first-class stamp in order to
send a DVD across
• The company started its first day of business on April 14, 1998. The company had 30
employees on its first day and offered nearly 900 titles for rent. The first scheme they
offered was a seven-day DVD rental for $4 and an additional $2 for shipping. They also
put new titles for sale giving an impressive 30% discount to attract customers. Their
website provided users with movie reviews and automatic suggestions to prompt them
to rent additional DVD’s.

3. MISSION
Our mission is to grow our streaming
subscription business domestically and
globally. We are continuously improving
the customer experience, with a focus
on expanding our streaming content,
enhancing our user interface and
extending our streaming service to even
more Internet-connected devices, while
staying within the parameters of our
consolidated net income and operating
segment contribution profit targets.

4. VISSION
Becoming the best global
entertainment distribution service
, Licensing entertainment content
around the world, Creating
markets that are accessible to film
makers, Helping content creators
around the world to find a global
audience.

6. • Diversified mass market based
worldwide
• Age range from 18 to 59 years
• Very dynamic
• Constantly changing
• Follows technology innovations
and consumer behaviour
• June 2013 had 36.7 million
people subscribed to Netflix
(spend 2 billion hours watching
Netflix)

7. • Online streaming servicesince
2008, using the website for
computers and itsapplication
for smartphones, tablets, game
consoles and other platforms.
• DVD and Blu-ray discsrental
by mail;
Channels of Distribution

8. Customer Relationships
• Chances of reaching a
potential subscriber are
higher
• Those specific people
already spend some of their
time on the Internet.
• Value of no-commitment
• Efforts to continue bringing
exclusive original high-
quality content to get
subscribers.

9. • Contracts with Major
Companies
• Providing Content
• Marketing
• Video on Demand
Key Activities

10. Key Resources
• Top-quality streaming
media infrastructure:
mandatory requirement.
• Staff: A well-trained staff
able to function each duty.
• Licensing: Customers
subscribes to be given the
license required to stream
on the multiple platforms.

11.  Internet Providers
 Television Networks
and Motion Pictures
 Amazon Servers
Key Partners

12.  External content: must pay for the
license cost
 Technology and Development Cost
o Fund the streaming processes
o Improve the originality
 Marketing
 Administrative costs
 DVD Warehouse Operation
Cost Structure

13. Monthly
membership
fee:
62% of the
total revenue
for domestic
streaming;
23% of the
total revenue
from
international
streaming.
Domestic
DVD and Blu-
ray rental
services:
Around 13%
of the total
revenue.
Declined from
31.5% in 2012
to 13.9% in
2014.
Revenue Streams
$6.78 billion -2015

14. PEST ANALYSIS

15. Threat of new entrants – high (Apple, Amazon, Hulu, Youtube)
Threat of substitutes – high (Apple TV, Hulu)
Bargaining power of customers – high (a lot of choice for
substitutes)
Bargaining power of suppliers – high (content is key)
Intensity of rivalry – high (HBO, low entry barriers, major
players present)
Complementors – high (Microsoft, Wall-Mart, Roku, Vizio, LG)

16. SWOT analysis
Strengths – Data, experience, # shows and movies
Weaknesses – Fixed costs, high debt, system not
flexible
Opportunities – Europe, NEM, original content
Threats – changing technology, rising prices,
competitive markets

17. CONCLUSION
• Netflix will spend up to $8 billion on content in 2018.
• The company now has a market capitalisation of more than $100
billion.
• It now has more than 118 million streaming subscribers globally.
• Netflix has its customer base in 190 countries.