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The success story of Netflix

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Hoang Hai

on 5 April 2014

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Transcript of The success story of Netflix

Subscription revenue model
Revenue model
Monthly flat-fee service for the rental of DVD and Blu-ray Discs
Competitive advantages
Business Model
Value Proposition
What is Netflix?
Founded in 1997
Provide online on-demand streaming media and offer flat rate DVD-by-mail
US$ 4.37 billion (2013) revenue
The successful story of Netflix
Value proposition
Revenue model
Market opportunity
Market opportunity
Weaknesses of Blockbuster
First mover advantage
Competitive advantages
Competitive environment
Market strategy
Unlimited viewing
from most devices
Other market fields
International markets
No due dates, late fees or shipping and handling fees
Sold used movies (discontinued at the end of November 2008)
Big sized library
Revenue model
US rental movies market
Low fixed price
No commercial
with an Internet connection
unlimited access
Competitive environment
Market strategy
Latin America
Original content
Exclusive content
Existing competitor
Make use of Internet as a free promotion campaign
Print media marketing (place an advertisement in People Magazine)
visit college campuses
to sell personally
affiliate itself with
a cell phone company (or multiple)
Eg: releasing short series of fresh and comedic YouTube videos
Lessons learned
- Successful in turning others’ weaknesses into its strength
- Fully make use of that first mover advantage
- Dominant in the video streaming space by expanding oversea

Thank you for watching!
By Nguyen Huong Quynh Anh
Nguyen Hoang Hai

$5 billion in sales in 5 years
Full transcript