Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.



Attractiveness of Netherlands Market

Christopher Glover

on 21 April 2010

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Netflix

Introducing Netflix into the Netherlands Demographics
Population: 16,499,084
61st most populated country in the world
68% age range of 15-64
Majority are 30-55
35% of Netflix customers in the U.S. are in this age range
Country Outlook Amsterdam located in Netherlands
-5th largest tourist city in the world
-4.2 million visitors yearly
U.S. hotels offer movie streaming as a source of revenue
Amsterdam could entice Americans the same way
16th largest economy in world
GDP per capita is $52,321
United States only has GDP per capita of $46,442
Purchasing Power Parity (PPP)
World Bank has Netherlands at 7th while U.S. is at 4th
Significant disposable income to spend on an optional service like Netflix
Industry Outlook Parliamentary Democracy:
1) Makes the Netherlands an attractive place to invest
2) 6th best country to invest and operate in according to Heritage Foundation
Business is easy to start up in the Netherlands:
1) Average days required to open a business: 35
-The Netherlands is only 10 days
2) Open Market System
-15th of 157 most free countries

Safe and reliable for entrance
Foreign companies are treated nearly the same as local companies
No national or regional barriers that are not specific to local companies as well
Foreign investment is encouraged
More Specific to Netflix
The Netherlands have a quick reaction to technology:
-First country to establish an e-commerce code of conduct
Developed quickly to attract high-tech investment
Policy on intellectual property law is rated as 'very good'
Netflix would not be able to enter a market with low IP laws:
-Most studios would be unwilling to have their movies distributed under little protection
Easy access and strict laws would provide Netflix with a safe and quick move to the Netherlands
Stable Economy
High infrastructure
Possible Problems:
If legal entity can’t be established in the Netherlands:
Netflix could operate under a Dutch Brand:
-Merge or purchase a Dutch company with similar business
-Joint venture with a Dutch party
High quality of living and education
6th highest broadband speed in the world
-Eight places higher than the United States
6th cheapest broadband
Vital because Netflix would only operate through the internet United States and the Netherlands are very similar Computer use:
82% of Dutch at home/work
76% of Americans at home/work
Internet use:
72% of Dutch at home/work
70% of Americans at home/work The Dutch are the most computer literate people in the world. Language is Dutch
58% have a decent understanding of English
US already has a presence in the Netherlands box office
9 of last 10 top weekly movies were from the U.S.
Subtitles and dubbing make it possible
Piracy Problem:
In 1998, 57% of the Dutch did not view piracy as a crime
Number has significantly dropped but Netflix would not be able to compete against piracy
Potential Market
Channels of Distribution Population: 16.5 million with avg. growth of .436%
Netherlands Movie and Entertainment Industry is on a slow decline:
-5.6 CAGR over next 5 years
Video Rental is 49.2% of market

Potential Target: to anyone able to run a computer?

Online Streaming Industry in America:
1) Blockbuster
2) Netflix, and
3)Amazon Video on Demand
Typically targeted profile: Male – Mid 30’s – Income: $60,000+

Demographics are evolving as streaming becomes mainstream:
55% Male, 45% Female
75% income of $30,000+
66% Childless
50% college grads
(Childless couples, Singles)
Higher disposable income than a typical consumer

Should market to both lower income and higher income customers:
-Low income – Market the aspects of Price, and No Late Fees
-High Income – Market the aspects of convenience and choice of selection
Breaking up the target markets allows us to market to each customer specifically and penetrate the market better

Blockbuster, Inc., Keeno, MovieMile, and DVDperpost, VideoLand on Demand.
Blockbuster largest international competitor but only 60% of market cap
Largest competitor to the Netherlands market
Only available to people of the Netherlands
Privately owned couldn’t be properly compared to Netflix
Netflix’s competition in the Netherlands is small private owned companies.
Two channels of distribution in competition:
1) Internet
2) Mail
Internet is best channel to compete with:
1) Lower distribution costs
2) Lower conversion costs

Gray market:
Small Chance, limited to people with high technical skills and a pre-existing Netflix account
1) Spoof an I.P. Address
2) Remote Desktop
3) Proxy Server
Entry Strategy
Target Market


Marketing Strategy
Distribution channels
Sales/ Market Share Projections
slow start
exponential growth
Advertising Budget Projections

Timeline / Market Share
Shrinking market
.55% in 7 years (5% in US)
Increased responsiveness
Optional future expansion
Copyright licensing
Continue from US headquarters:
Less risk
Lower cost
Best choice
US User Profile
Higher income
No children
Netherlands Demographics
Young adult
No children

Cultural Similarities:
Affordable Luxury
Inexpensive but trendy
Future of multimedia
Online Streaming
Large Selection
Mail-Out Movies
Larger selection
Blurays and DVD’s

Streaming only:
1) No buying DVDs
2) No physical presense
US: Netherlands: $4.99
1 movie at a time
2 movies in a month
3 movies at a time
Unlimited movies in a month
Up to 8 movies at a time
$6 per bracket increase

Keeno / Movie Mile:
€2.99 ($4.00)
US Plans Netherlands Plans Entertainment Industry:
Television Advertising
- specific demographic targeting
Internet Advertising
- targets active online consumers Strategy Streaming Options:
Gaming Systems
Internet TV’s
Bluray Players
United States:
$.34 per person
$55 Million yearly
$3 Million
Projections Conclusions: Small potential market
Negative revenues as far as 2020
Simple Commodity
Continue Searching Elsewhere
Two Options: By:
Ben Huseman
Chris Glover
Allyson Korleski
Aaron DeGoey
Kevin Brim
Jeff Starr Will this hold true in another country? Questions?
Full transcript