Netflix Performance Report

Contents

Introduction        2

Industry Information        2

Company Strategy        6

Stakeholder Analysis        9

Triple Bottom Line        11

Balanced Scorecard        12

Performance Metrics        12

Functional Metrics        13

Gap Analysis        14

Recommendations        15

Conclusion        16

References        17

Appendix        18

Introduction

Netflix is an online subscription-based video-on-demand service that allows ad-free viewing of a widespread of shows and movies. It was founded in 1997 in Scotts Valley, California by Marc Randolph and Reed Hastings (Media.Netflix, 2018). It started out as a mail order DVD business that has now become one of the biggest online streaming video services in the world. Recently, Netflix reached a record breaking figure of 125 million subscribers in the first quarter of 2018 (Statista , 2018). These subscribers have the ability to watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screens, televisions, computers and mobile devices. In addition to that, it is now also available in over 190 countries around the world (Media.Netflix, 2018).

Netflix operates through the following segments: domestic streaming, international streaming, and domestic DVD rentals. The domestic streaming segment contains services that provide content to its members in the United States. The International streaming segment includes services that provide content to its members outside of the United States. The Domestic DVD segment includes services, such DVD-by-mail. (Nielsen Global, 2016).

Industry Information

The digital video industry also identified as the premium Video-on-Demand (VoD), offers video content that is distributed over the internet. It includes three fee-based business models; single transaction or pay-per-view (transactional-VoD or TVoD), subscription-based services (subscription-VoD or SVoD), and digital purchases via download or permanent cloud-storage (electronic-sell-through or EST) (Statista , 2018). Overall, the video-on-demand market summed to 21,732 million USD in 2018 (Statista , 2018). The industry revenue is forecasted to see a growth rate from 2018 to 2022 of 6.2% per year (Statista , 2018). This is following a market volume of 27, 608 million USD by the year 2022 (Statista , 2018).