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Netflix: Case Study: Susmitha Annamaneni

Netflix is the world's largest online movie rental service, founded in 1997 and headquartered in California. It began as a DVD rental business but now offers over 5,000 titles that can be streamed instantly. Netflix has over 6.7 million subscribers and ships over 1.6 million discs per day. It utilizes various marketing strategies like partnerships and free trials to promote its flat-fee subscription services that allow unlimited rentals from different pricing plans starting at $4.99 per month.

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128 views13 pages

Netflix: Case Study: Susmitha Annamaneni

Netflix is the world's largest online movie rental service, founded in 1997 and headquartered in California. It began as a DVD rental business but now offers over 5,000 titles that can be streamed instantly. Netflix has over 6.7 million subscribers and ships over 1.6 million discs per day. It utilizes various marketing strategies like partnerships and free trials to promote its flat-fee subscription services that allow unlimited rentals from different pricing plans starting at $4.99 per month.

Uploaded by

gauravmdiwakar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Netflix: Case Study

Presented by

Susmitha Annamaneni

Overview
Worlds largest online movie rental service Founded by Reed Hastings Established in 1998 and headquartered in Los Gatos, California More than 90,000 DVD titles Offers flat rate rental-by-mail to customers Growing library of more than 5,000 choices that can be watched instantly on their PCs Over 6.7 million subscribers They have over 55 million discs and ship 1.6 million a day, on average

Corporate History
Netflix was incorporated on August 29, 1997 Began operations on April 14, 1998 Initiated an initial public offering (IPO) on May 29, 2002 selling 5,500,000 shares of common stock at the price of US$15.00 per share On June 14, 2002, it sold an additional 825,000 shares of common stock at the same price Netflix posted its first profit during fiscal year 2003 Netflix mails about 190,000 discs per day to its 670,000 monthly subscribers. Subscriber counts have increased from one million by the fourth quarter of 2002 to around 5.6 million at the end of the third quarter of 2006

How Netflix Works?

Features
Instant Viewing Queue Browse Movie Recommendations Community

Netflix Facts
Ratings Rental Habits Recommendations Customer Satisfaction Inventory Volume Environment

Services
Flat-fee service Various plans Sells gift subscriptions Instant Viewing Sells used DVDs to its subscribers

Pricing Levels
1 1 2 3 4 5 6 7 8 at-a-time at-a-time at-a-time at-a-time at-a-time at-a-time at-a-time at-a-time at-a-time (2 a month) - just $4.99 a month (Unlimited) - just $8.99 a month (Unlimited) - just $13.99 a month (Unlimited) - just $16.99 a month (Unlimited) - just $23.99 a month (Unlimited) - just $29.99 a month (Unlimited) - just $35.99 a month (Unlimited) - just $41.99 a month (Unlimited) - just $47.99 a month

Marketing Strategies
Pay-for-performance banner from yahoo, MSN, AOL Search-engine Third party download ads and logos Best-buy to include flyers Free trials Shared revenue with studios

Competitors
Blockbuster, Inc. Wal-Mart Stores, Inc. Amazon. COM, Inc.

Netflix Growth

Achievements
Number #1 website in Spring 2005 , Spring 2006, and Spring 2007 Fall 2005 - Annual Customers First Award January 2007 - Retail Innovator of the Year

References
http://www.netflix.com/MediaCenter?id=5379&hnjr =8#snapshot http://en.wikipedia.org/wiki/Netflix http://www.fundinguniverse.com/companyhistories/Netflix-Inc-Company-History.html http://ir.netflix.com/

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