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Netflix Presentation

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Presentation Question Answer


AbdurRahman Arif Islam
Abdul Aziz Khan Saif Ullah

Muhammad Ibrahim Zia Ul Amin


Tanveer Waqar Younas
Ghazanfar Ali Raz Mohammad
Hassan Zaman Muhammad Nawaz Khan 2
INTRODUCTION TO NETFLIX
• Founded in 1997
• CEO and Founder Hasting
• Offered DVD home delivery
• Very little competition for DVD rentals
• indirect competitors still sold VHS
• Due to complaints about high fees and
slow delivery, in 1999 the ‘no late fees policy was launched’
• subscription model put in place
• Unlimited rentals
• Keep 4 DVDs at home
• In 2001 Netflix announced intention to create a VOD business
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NETFLIX OFFERS
• Immediate access to thousands of;
• Movies
• TV Shows
• Gaming
• Netflix can be accessed through
• Smart TV
• Game Consoles
• Streaming Players
• Mobile Phones
• Tablets
• And even through your Personal Computer.
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• SOME RECENT STATISTICS OF NETFLIX

• Share price is $298.44


• Profitability 16 billion dollar (2018)
• Total subscribers
» Only in USA 60 million
» Worldwide 139 million
• Total asset of Netflix is 25.97 billion dollar
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• RISE OF NETFLIX
In previous slides we discussed that Netflix groomed so quickly due to
certain reasons which are here;
– Causes
• Unique Idea of subscription
• Partnership
• No late fee policy
• Fastest home delivery
• Original contents
• Largest pool of movies, shows
• Can be access Worldwide
• Its unique promotion (brief in next slide)
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DEATH OF BLOCKBUSTER
• American-based provider of home movie and video game rental services
– Causes of loosing competition (Forbes.com)
• Poor idea of stand alone
• Providing only DVD, whose demand declines
• Charging late fee policy
• Changing customers change while firm stuck in past
• Hard to access in other region of the world
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INITIATING VOD
Netflix strive to bring new ideas each time like they
initiated VOD (video on demand) in 2007 because of;
• Declining demand of DVD
• Lower profitability of previous services
• Increasing competition

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NO ADVERTISEMENT ONTO NETFLIX PERIOD POLICY
• Initially these policy was introduced by hasting which
is most popular among its customer but as they get
fame the CEO announced that they will review this
policy bcz due to this policy they loose a huge
amount of profitability

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AMAZON VS. NETFLIX
• Amazon may give tough time to the Netflix bcz of;
– Reason why Netflix should aware of AMAZON
• 101 million subscriber worldwide
• 14.17 billion Doller revenue
• Exclusive services they provides

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AMAZON VS. NETFLIX (cont’d)
Services provided by amazon which may fail Netflix
• Free same-day delivery. ...
• Amazon Prime Rewards Visa Signature Card. ...
• Instant access to video streaming. ...
• Music streaming. ...
• Prime Photos. ...
• Access to Lightning Deals. ...
• Prime Now.
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• So Netflix should be aware of the tough time they
may get from Amazon.
• Netflix shouldn’t be happy with their previous
achievement rather they have to work hard for
staying in the market.
• Like amazon they have to launched new ideas,
services and other facilities so they may pertain their
position in the market
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EXCLUSIVE RIGHT WITH NETFLIX
• Netflix has exclusive right to display top movies like;
• Spider-Man
• Hell or High Water
• Rocky
• All the President's Men
• Network
• The Lobster
• Boyhood
• Locke
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• AGGRESSIVE EXPANSION POLICY

• Extensive domestic growth


• Operated in 200 countries
• Getting Copy rights and patents right
• Extensive marketing/ advertisement

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CHALLENGES FACED BY NETFLIX

• Maintaining new subscriber growth


• Increasing competition
• Rising content costs
• Regulatory restriction
• Local adaptation

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• MAINTAINING SUBSCRIBER GROWTH
– As we see in chart the subscriber growth increase
with a decreasing rate which is a major challenge
for Netflix.
– Netflix lost more than
$16 billion from its market
cap following the report,
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• INCREASING COMPETITION
• There are a few potential competitors on the horizon
• AT&T's
• Warner Media
• Apple
• Google
• YouTube
• Disney
• Amazon
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RISING CONTENT COSTS
• Previously they paid $30 million for licensing
• Currently they paid $100 million (333% increment)
• Increasing cost and decreasing subscriber may fell the
company in trouble.
• Customer isn’t willing to pay higher subscription
charges

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REGULATORY RESTRICTION
As an American company Netflix was still subject to
regulatory restriction imposed by the US government
• Netflix is not allowed by US govt to operate in some
countries like Syria.
• Restriction also made by the countries in which Netflix
want to operate for example Indonesia claimed that
Netflix content was unsuitable for locals.
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• LOCAL ADAPTATION

• Finding suitable content for locals


• Some people are reluctant to pay monthly subscription
in Germany and France rather they want pay per movie
• Netflix is available in 20 languages while operated in
more than 190 countries which create trouble.

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• Should offer pay per view policy
• Try to offer Netflix in many languages as possible
• Establish Niche marketing strategy.
• Should focus on what customer actually want
• Try to make joint venture with Disney
and Amazon (the harsh competitor)
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• Technology rapidly improving
• Netflix needs to keep up with the Ames
• Connectivity will be facilitated in the future
• Future Access to Content
• Easier and cheaper (on the business and client side
• Investment in technology
• Appeal and promote to existing users
• Offer one month free trial for VOD
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Invest money in service
Online service & mail-‐order speed
Technological improvements
Cloud-‐based options
Continue working with media outlets
Improve cost per watch
Increase library

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CONCLUSION
• Netflix got fame very quickly
• After a few years from initiating Netflix enter into $100
billion company
• The whole success is due to the CEO Hasting
• Now a days the company goes down and there is some
rumor of Netflix shutting down although CEO denied.
• Growth is decreases due to tough competition
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