Midterm Assignment

NETFLIX
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Group

Members:

Nguyễn Xuân Thành Đạt - 22070415

Nguyễn Gia Quang Minh -22070548
Phạm Thành Long - 22070611

Introduction
Netflix is a popular subscription-based streaming service that allows members to
watch TV shows and movies on internet-connected devices. Depending on your
plan, you can also download content for offline viewing on certain devices. Netflix
offers a wide range of content, including award-winning originals, TV shows,
movies, and documentaries. The more you watch, the better it becomes at
recommending content.

Components of information system

1. Overview
History: Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a
DVD-by-mail service. It launched its streaming service in 2007 and expanded to
international markets in 2010. In 2013, Netflix began producing original content,
and in 2022, it ventured into the gaming industry.

Mission: Netflix's mission is to entertain the world by providing access to best-in-

class stories from anywhere and for everyone. The company aims to create a
personalized and engaging experience for its members, allowing them to control
what they watch, when they watch it, and how they watch it.

Achievements: Netflix has grown to become one of the world's leading

entertainment companies, with over 231 million subscribers in more than 190
countries. It has earned numerous awards and accolades for its original content,
including well-known titles such as "The Crown," "Stranger Things," "The
Queen's Gambit," and "Squid Game." Additionally, Netflix has been a pioneer in
streaming technology, data management, and content production

 Founded: August 1997

 Founders: Reed Hastings and Marc Randolph
 Headquarters: Los Gatos, California, USA
 Current CEO: Reed Hastings
 Global Employees: 7,100 (2018)
 Type: Public (floated May 2002)
 Initial Funding: $2.5m self-funding
 Key Products / Services: Content streaming, content distribution and content
production


2. People
Netflix is owned by its shareholders. The largest shareholder is Vanguard, an asset
management company, which holds 8.0% of the company's shares, followed by BlackRock,
with a 6.2% stake, and Fidelity, with a 5.3% stake. Chairman and co-founder Reed Hastings
owns 1.2% of Netflix's shares
Netflix has approximately 11,300 full-time employees
 3. Hardware
 Netflix relies on a network of servers to store and deliver its content to users. These servers
handle tasks, like video encoding, storage and content distribution.

 In order to house its library of movies TV shows and video content Netflix requires an amount of
storage capacity. This includes storage devices such as drives, solid state drives (SSDs) and other
similar technologies.

 To ensure data transmission between servers and users Netflix utilizes networking equipment
such as routers, switches and load balancers. This infrastructure plays a role in delivering content
swiftly to users devices.

 When it comes to the backbone of Netflixs operations they rely on two clouds; AWS and Open
Connect. These clouds work together seamlessly to provide the video experience, for subscribers.

4. Software

- The User Service: handles user information and their interactions, with Netflix.

- The Uploader: tool is responsible for uploading video content.

- The Messaging Server: manages notifications and communication between system

components.

- The Video Processing Transcoder: converts videos into formats and qualities to
accommodate devices.

- Videos storage : videos are stored in the Video Storage after they have been encoded.

- The Catalogue Service : takes care of managing the video catalog.

- Users database: can easily find the videos they want to watch through the Search Index.

- Storage: is used for storing data like user information and viewing history.

- Machine Learning: plays a role in providing features such as movie recommendations based
on user preferences.
- Analytics: analyzes both user behavior and system performance to enhance the service.
Lastly the CDN (Content Delivery Network) ensures efficient content delivery, to users

5. Business processes
Producing, acquiring and licensing original content: Netflix creates its own shows and movies,
buys the rights to stream other content, and pays royalties to content owners. This process helps
Netflix to expand its video library and attract more subscribers12.

Maintaining and expanding its platform: Netflix develops and updates its website, mobile apps, TV
apps, and other devices that users can watch Netflix on. This process helps Netflix to ensure a smooth
and consistent user experience across different platforms13.

Developing its pricing strategy and subscription model: Netflix offers three simple plans: basic,
standard, and premium, that give access to stream series, movies, and shows. Netflix also adjusts its
prices based on the market demand, competition, and costs. This process helps Netflix to ensure
affordability and new customer acquisition12.

Developing a roadmap to enter into new markets: Netflix researches and analyzes the potential
markets that it can expand into, such as different countries or regions. Netflix also adapts its content,
language, payment methods, and regulations to suit the local preferences and laws. This process helps
Netflix to increase its global reach and revenue
 6. Data

Users Features Information/Data

- Viewing history (shows watched)

- Time and date of viewing
-Watching movies and TV,
- Device used for viewing
Regular Users Searching
- Whether the show was skipped, paused, or
-for content, Rating shows
rewatched

-Access to full content library -Payment history

-Offline content download - Usage history (content accessed)
Paid Users

Free Users -Limited content access - Viewing history (shows watched)

Child Users -Child mode for age-appropriate - Viewing history (shows watched)
Conclusions
Netflix is a global entertainment company with a rich history, a well-defined mission,
and numerous achievements in the field of content streaming and production include
amassing over 231 million subscribers worldwide and earning numerous awards for
its original content. The company is known for its pioneering role in streaming
technology, data management, and content production.

The company relies on a network of servers, storage devices, and cloud services for
its hardware infrastructure. In software, it uses various components for user
interactions, content processing, and system performance, including machine learning
and analytics.

Netflix's business processes involve content production, platform maintenance,

pricing strategy development, and global market expansion.

Data collected from different types of users, such as regular users, paid users, free
users, and child users, are used to tailor content recommendations and improve user
experiences. This data includes information on viewing history, device usage, and
payment and usage history for different user categories.

Reference
What is Netflix?
Netflix’s Business Strategy Explained | Starting Business
All About Netflix’s Data Management Systems (analyticsindiamag.com)
System Design Netflix - A Complete Architecture - GeeksforGeeks
Netflix Information System - 1867 Words | Studymode
How Netflix Uses Information Technology | Brooke Besley's Blog (ubc.ca)
Netflix Target Market & Audience Segmentation | Start.io