Netflix case Study 2.docx - Netflix Inc The Second Act...

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1 Netflix Inc.: The Second Act – Moving into Streaming Netflix.: The Second Act – Moving into Streaming MKT/701 September 17, 2017 Dr. Aadel A. Darrat
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2 Netflix Inc.: The Second Act – Moving into Streaming Founded in Los Gatos, California by entrepreneurs Reed Hasting and Mark Randolph, Netflix Inc. is an international distributor of on-demand web based streaming services. With a concentration on offering online streaming to more than 104 million consumers in over 190 countries, Netflix has established a brand that is globally recognizable. While putting an emphasis on global expansion, Netflix initial goal was to penetrate the Canadian media markets. After establishing success, the decision was made to expand to the following countries: Latin America, Australia, New Zealand and Japan. Netflix initially focused on providing standard priced DVDs via postal services in marketplaces where shipped DVDs were distributed through certified reply. Netflix streaming services are currently available on most internet accessible devices including personal computers, tablets, smartphones, Smart TV’s and gaming consoles. The following case study will highlight the separation of Netflix streaming and DVD by mail services, their viewed competition in the marketplace and perceived competitive advantage and finally their cost of acquisition and content. After receiving incorporation in August of 1997, one year later Netflix formed a partnership with Amazon.com to promote and distribute their DVD division. As a result of this partnership Netflix gained the ability to solely focus on their streaming division, while receiving free promotion from Amazon through DVD traffic on their website. In the following year, Netflix decided to start their subscription base digital services. After the initial success in the subscription base digital market, Netflix made the announcement in 2007 that they were entering the instantaneous streaming marketplace. By the end of 2009, Netflix offered a variety of 100,000 DVD releases with over 12.3 million customers. In 2011, CEO Reed Hasting made the
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