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NETFLIX

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by

Lily Bridgwood

on 18 March 2015

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Transcript of NETFLIX

Original high-quality content
Why Netflix has not failed?
Is the Film Industry Prepared for such Innovation?
Pay 10€ to see a film in a movie theater?

People built film libraries even that most movies only got watched once

TVs and Home cinemas have greatly improved

How Did Netflix Disrupt the TV Industry?
- Provided a DVD rental service without the worry of 'late fees'

- By February 2007, it had delivered its billionth DVD.

- Drove out competition.

- It now creates its own TV shows - Netflix Originals
Why did Netflix engage in patent litigation?

- December 2009: Netflix and Blockbuster.
- Why? Blockbuster "imitated" the succesful Netflix business model.
- Who won the lawsuit? No one.

- December 2012: Open TV and Netflix.
- Why? Open TV claimed that Netflix infringed several of its patents.
- Who won the lawsuit? Open TV.

Is Netflix thinking of coming to Spain?

Conclusion
Background of Netflix
1997: Founded. Online movie rentals company
NETFLIX
Why?
Economic crisis
High piracy level
Slow growth of movie distribution on the Internet
Lack of a significant pay TV penetration
Netflix Revenue Growth
Netflix Subscribers 2012 - 2015
Long-term view
Less reliant on film distributors
Innovation on HHRR Management
Best content for
Happy consumers
Quick and constant adaptation
2007: Netflix introduces Streaming service.

Number of tickets sold slipped to 1.34 billion from 1.36
DISRUPTIVE INNOVATION
Consumers also stand to benefit from being able to watch films on their own time, over and over.
Warning sign that the industry needs to innovate and persuade audience to leave their house to see films.
Netflix will not arrive in Spain
But now...
Netflix is coming to spain at the end of this year
March 2015
Buy rights
Negotiations with TV manufacturers
Main competitors in Spain
Netflix succeeds where others have failed
Long-term vision
Drastically changed their business to adapt to growing technologies.
Took advantage from a disruptive innovation
Anna Barnet
Antoine Bourbon
Lily Bridgwood
Oriol Busquets
Quim Massó
Rosa Ramos
Full transcript