Netflix Case Study

Netflix is the global leader in streaming media. With over 57 million subscribers in over 50 countries, Netflix provides internet steaming media without a limit on programming for a flat monthly fee. The long term goal of Netflix is that streaming video media will eventually overtake the traditional providers of linear television (air & cable)

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a means to order movie rentals online. The “ah ha” moment came when Reed had a significant late fee from Blockbuster. By providing movies via subscription fee, Netflix forced Blockbuster to drop their late fee program. Also seeing the opportunities with a new budding technology of DVD, Netflix took a proactive approach on distribution of the new format. Although initially costly, Netflix saw that customers would embrace the new technology. In 1999 Netflix offers their monthly unlimited subscription service. 2007 brought the introduction of Netflix’s’ online streaming of media. In an effort to grow this new market, Netflix works with a wide array of internet devices to provide a number of vehicles to reach out to their customers (IPad, Nintendo Wii, Xbox etc.) Streaming media is now the flagship product and with a strong international presence, Netflix is poised to grow even larger.

Situation Audit

Strengths

Excellent streaming service/software

Market share

Proactive in a marketplace with new avenues for media

Adaptation of new technology

Strong brand name

Customization software for customers

Significant market share in online videos and rentals

Available on multiple