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Transcript of NETFLIX
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?
Background of Netflix
1997: Founded. Online movie rentals company
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
Less reliant on film distributors
Innovation on HHRR Management
Best content for
Quick and constant adaptation
2007: Netflix introduces Streaming service.
Number of tickets sold slipped to 1.34 billion from 1.36
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
Netflix is coming to spain at the end of this year
Negotiations with TV manufacturers
Main competitors in Spain
Netflix succeeds where others have failed
Drastically changed their business to adapt to growing technologies.
Took advantage from a disruptive innovation