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Netflix Presentation

Transcript: NETFLIX - By Ella and Jess What is Netflix? What is NETFLIX? Netflix is a streaming service that allows members to watch a variety of TV shows and Movies with the click of a button Main target Main Target The main target of netflix is anyone who can afford the monthly subscription. Target audience is 17-60 year old men and women. Subscription Subscription Currently, to use netflix you have to pay a subscription that can range from $9.99 to $19.99 depending on your location and plan. Although it is continually rising as more streaming services appear such as Stan and Disney+. Consumer Consumer They are selling this app or website to people that have decent internet connection and can afford to pay the monthly subscription. There is currently 167 million subscribers worldwide. History of Netflix History of Netflix Netflix history has been around for a very long time, longer than people would think. It has evolved in many ways to keep us with societies need. It went form a video renting company to a streaming service. Background Background Netflix started on the 29th of August 1997 in Scotts Valley, California, United States. In 1998 netflix launches its first website which enables people to rent 925 different titles online and recive the tape in the post. They then launched their subsciber based system in 1999 and finally in 2007 they introduced a streamin gservice called watch-now which meant people could watch what ever they want on their personal computers Advances in Netflix brought by new technology advances in network speeds, global network connectivity and hardware accessibility like laptops, tablets, mobile phones, household modems have contributed to Netflix's success. Advances in Netflix advances in network speeds has helped Netflix grow as a company. having faster network connection leads to more customers looking for a quick and reliable streaming service. speed FASTER is BETTER Netflix around the world thanks to global network connectivity Nexflix can stream all over the world. this allows more subscribers and therefore more money to Netfix. around the world hardware accessibility accessibility Netflix not only allows quick and reliable access to hundreds of movies, shows, and documentaries on your TV, but it also streams to laptops, tablets, mobile phones, and other household modems. This lets subscribes stream Netfix wherever they please which makes more people interested in what Netflix offers. Positive impacts of Netflix Positive Impacts Netflix has had many positive impacts around the world socially, economically and industrial. It has meant that people can know stream tv shows anywhere, anytime and on what ever device they want. This helps people connect online throug Netflix Party. It is now one of the biggest streaminng services in the world. It has helped economically as it has provided a lot of money to the company. Social 'Netflix can be a good stress reliever and create family fun time. It is a great source for watching movies or even catching up on some of your favorite shows.' Kam Kelson Economic They increased their total number of paying subscribers to nearly 140 million worldwide, up from 110 million in 2017. These new subscribers allowed them to increase their revenues by 35% to $16 billion. Their operating profits doubled to $1.6 billion. They are forecasting an additional 8.9 million new subscribers in the first quarter of 2019, bringing their total to nearly 150 million paying subscribers worldwide. Impact Economics Industrial Netflix (NFLX) is the dominant company in the on-demand media industry, with 167 million paying subscribers around the world. Investopedia Negative Imapcts Negative Impacts Although netflix is a great streaming service it does have its downsides. it has social effect on people that researchers call the 'Netflix Effect'. As well as this it has dominated the tv indsutry meaning that some day soon cable tv could go out of fashion whch causes a massive economic impact to many people. social impacts social "According to reports, teens, adults, and even children are being impacted by the “Netflix Effect.” The disadvantages for teens who binge watch television include slipping grades, being late to work or class, not going outside to be active thereby gaining weight, and closing themselves off from having a social life. " article by Kam Kelson Economic impacts economic with more and more people leaning toward Netflix and other streaming apps, cable TV has been left behind with less and less people watching its channels and commercials. with free TV drifting further and further away from us, so does "big business's" favorite way to advertise. The future of Netflix The Future of Netflix back in the day, Netflix had a monopoly as the main streaming service ahead of it's time. Nowadays, we are surrounded by tons of apps that have learned from netflixes past mistakes which makes it much harder for Netflix to stay on top.(Nexflix's biggest competition Disney+ ,

Netflix Presentation

Transcript: Ads Competitor Analysis & Positioning Strategies PR: Cause marketing Opinion leaders Sales Promotion: Extended free trial Co-op advertising Social Media & Digital Marketing: Social Media remodel Instagram QR codes IMDB New Netflix Strategy Budget “It turns out that when people hear about Netflix in an ad, they really don’t respond. They have to hear about it from a friend.” Internet & TV Advertising Watch responsibly Sales Promotion Social media presence Viral marketing Future Remind consumers why Netflix is #1 Convenient, simple, easy to use Personalized Simple entertainment vehicle to cater to consumer's needs Portray Netflix as a classic, simple treat to be enjoyed in the midst of life's busyness "Finally" Netflix IMC Plan Key Competitors: Amazon Instant Video Hulu HBO Other Competitors: cable companies (ex. Dish, DIRECTV, Verizon Fios) Current Marketing and Advertising Efforts Focus Group: Six Grove City College students Netflix first in mind (simple and reliable) Like original content and uploading of entire seasons Lacks streaming content Like no ads Use parents accounts. Cannot afford to buy Netflix. Helped us to define target market. Interviews: ( a variety of people ranging from age 20 to 59) "She recently visited the Netflix website and was impressed with the changes that have been made since she last subscribed, causing her to sign up for a free trial." "Although he uses Netflix primarily for movie watching, he finds it convenient for catching up on past episodes of television series in order to stay up to date with current episodes." "First," "Available," Dependable" "Netflix is going to have to change in order to survive" Surveys: (Grove City College Students ages 18-23) 60% choose Netflix, 21% Hulu, Amazon 6%, HBO 3% 60% were "satisfied" with Netflix experience, "Very satisfied" and "Neutral" were both 20% Areas of improvement: 77% said "content selection" Consumer Research and Motivations Current Netflix Banner Ad Competitor Ads Marketing Communications

Netflix Presentation

Transcript: Value Propositions Value Proposition Value Proposition 1. Simplified movie rental and return 2. Subscription pricing - no late fees 3. Large selection of DVD content In the Beginning... `1 2 3 Supply- & Demand-side Value Value Evolution Consumers 1. Huge content repository 2. Personalized recommendations 3. Simplified pricing structure 4. No ads 5. Content mobility 6. On-demand/binge capacity 7. Netflix exclusive content Content Providers 1. Exposure 2. New marketing channel The Mission We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. The Vision 1. Becoming the best global entertainment distribution service 2. Licensing entertainment content around the world 3. Creating markets that are accessible to filmmakers 4. Helping content creators around the world to find a global audience Channels How does Netflix deliver their product? Channels Declining DVD rentals Revenue Q1 2020: $64,328,000 Down 20% YoY DVD Rental The Netflix subscription-based video on-demand platform primarily accessible anytime in global locations in which the service has been deployed and where internet is available on mobile & tablet and computer devices along with TVs through local media providers or software apps. Internet Internet Netflix works to improve the platform’s mobile experience, with simplified new customer sign-ups, advanced credentials and authentication, a more intuitive user interface, and better streaming efficiency for cellular networks. User Interface User Interface Netflix optimizes internet access across various mediums to improve continuous & seamless video streaming reliability to facilitate downloading of available content on Wi-Fi, mobile or LAN/WAN networks Video Streaming Video Streaming To overcome the challenge where only 22% of the African population has internet access, and local governments are not motivated to increase internet penetration and affordable broadband access, Netflix has deployed dedicated servers in Africa so that users can stream video. Additionally, Netflix is using video compression technology to reduce data consumption. Infrastructure Challenges Consumer Stats Customer Segments Global Consumers Overall, Netflix now has 167 million subscribers worldwide and 60 million in the US. That puts it in the No. 1 spot by a mile. Disney hasn't announced Disney Plus' total subscribers so far, but it said the service gained 10 million sign-ups in its first day. -Business Insider January 2020 Netflix Demographics (US) Who is subscribing to Netflix? And who isn't? Demographics Netflix User's By Age Users By Age In 2018, 73.53% of respondents aged 18 to 29 years used Netflix in the past 12 months. Netflix Users By Education Netflix’s appeal is not limited a certain level of educational Nearly a perfect match between the educational levels of Netflix users vs overall US population. Users By Education Users By Income Slight penetration in higher income brackets. Users By Income How people access Netflix What about the class? Users by Subscription Ownership ... Alex Family of 6 (4 kids under 11) Already have Amazon Prime = free Prime Video No cable = kids watch PBS (free) The other 20%... Free options > Paid options - No Disney+! Cable Users Cable Users G L O B A L C O N S U M E R S Statista: Netflix number of paid subscribers April 2020, by region Subscribers by Region Global Growth Globalization Strategy Netflix’s deployed a three-stage globalization process when entering and doing business in new markets. Strategy Phase I For the first phase, Netflix focused its initial expansion into adjacent markets in terms of proximity and perceived differences between the markets. Netflix’s first international expansion, in 2010, was to Canada, which is geographically close to the U.S. and shares similarities to mitigate the nonnative challenges and enhance its core capabilities beyond the U.S. home market. Phase 1 Phrase II Phase 2 The second phase, involved an extensive international expansion approach into more than 50 countries, drawing on the lessons learned during the initial stage. The selection of new international markets was influenced by the degree of shared similarities, the presence of affluent consumers, and the availability of broadband internet. During the second phased expansion initiatives, Netflix had to partner with local media stakeholders, invest significantly into local content

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