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Netflix is a subscription based film and television program rental service that offers media to subscribers via internet and via US mail.
Its an American media-services provider and production company.
Its head quarter is in Los Gatos in California.
It was founded by Reed Hastings and Marc Randolph (1997) in Scotts Valley.
Initially it was named as Kibble, latter changed to Netflix.com.
In the beginning it was just a movie based rental service.
It distributed the DVDs by snail mails in the beginning.
Netflix represents a classical service business model in the video on demand industry where users of the services and payers are the same entity.
It introduced its first DVD rental service in 1998.
Netflix introduced its streaming services in 2007, and in 2013 Netflix first produced show “house of Cards” premiered.
Before switching to streaming service they refined and improve its DVD by mail service by introducing the faster delivery, building more distribution center and eliminating fees.
Netflix has become the largest online movie and TV show streaming provider with more than 75 million streaming members as of 2016.
But in the end of the 2019 Netflix stood up with 167 million subscribers.
In addition to this Netflix anticipates adding 7 million customers in the first three months of 2020.
Netflix became content creator from the content aggregate. and is having comparative advantage in research, development, production of original content as well as in its marketing strategies due to strong financial performance.
As it is leading the streaming space its facing the competition.
Amazon is the biggest competitor among them all. Amazon is provider and internet content distributor.
Apple. google are considered as its competitors because just like Netflix these are also the content distributors. but they are more of like partners with the Netflix as apple and google do not much concern from where the content is coming they prefer to distribute it.
Netflix’s total assets are US$33.975 billion by 2019.
Where its net income is US$1.866 billion by the year 2019.
It has generated US$ 20.156 billion revenues in the same year
Maintaining new subscriber growth
Increasing competition &
Rising content costs.
Netflix's key strategic elements are:
to develop high speed Internet service to its customers,
reduce content costs by producing their own content,
expand globally to take advantage of a whole new market, and
expand its offerings of quality television series.
Netflix started renting out DVD's by mail.
Only a year later Netflix changed its pay-for-use model into a subscription model.
Nearly a decade later, Netflix changed their proposition to a streaming service, which changed the way millions of people spend their free time.
The company spends more than 70 per cent of revenues on content.
Netflix is trying its best to provide its customers with original and quality content.