Management presentation by: Janine Guy Richard Scott Logan Tanner Ben Wilson Samaiyah Wilson

Netflix History Founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley California Idea was inspired by late fees Started with 30 employees and 925 movie titles First of its kind

Netflix History Original flat rate in 1999 was $15.95 per month for 4 disks Price raised to $19.95 for 4 disks Advertising started in Netflix stock NFLX goes public for $15.00 a share Netflix started streaming services in 2007

About Netflix 20 million subscribers  Up 63% from ,329 Employees  2,180 Full-time  2,149 Part-time Over 700 devices capable of streaming Netflix content Recently started services outside of the United States

Core Strategy “To Grow our streaming subscription business within the United States and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interfaces and extending our streaming service to earn even more internet- connected devices, while staying within the parameters of our operating margin targets.”

SWOT Strong Brand Identity Low Prices Unlimited Streaming No Late Fee Subscriber Base International Demand Demand for Instant Access Video Games New Releases Dependent on Suppliers Limited on Content Heavy Reliance on AWS 28 Day Window No Video Games Competitors Change in demand Postal Prices Strengths Opportunities WeaknessesThreats

Strengths Strong Brand Identity  First in the industry with strong reputation with customers Low Prices  Set price, lowest in the market Unlimited Streaming  Can stream as many movies as long desired without added cost No Late Fee  Keep a movie as long as a customer wants with no fees added. Subscriber Base  Constant growing subscriber base

Weaknesses Dependent on Suppliers  Netflix depends on the USPS to have all DVDs delivered to customers on time Limited on Content  Can only get DVD and streaming content that movie suppliers are willing to give to Netflix Heavy Reliance on AWS  Most of Netflix’s computing software and servers are run by Amazon Web Services 28 Day Window  Netflix must wait at on average 28 days before they can ship a newly released movie on DVD. No Video Games  No option to rent video games by mail

Opportunities International Demand  Streaming in Europe  By mail in less developed Nations Demand for Instant Access  Live events- sports, red carpet events. Video Games  By mail New Releases  Customers want to rent as soon as a movie is on DVD

Threats Competitors  Hulu (streaming)  Blockbuster (DVDs)  Red Box (DVDs)  Gamefly (potential video game) Change in demand from disks to streaming  Popularity of DVDs rapidly decreasing Increase in Postal Service prices

Strong Brand Identity Low Prices Unlimited Streaming Many Streaming Devices No Late Fee Subscriber Base International Demand Demand for Instant Access Video Games New Releases Dependent on Suppliers Limited on Content Heavy Reliance on AWS 28 Day Window No Video Games Competitors Change in demand Postal Prices SWOT Analysis Strengths Opportunities WeaknessesThreats

Leverages Advantage of many devices to stream Provides streaming instantly Strong brand recognition will help grow internationally

Vulnerabilities Uprising Competition The Sales of Video Games To Figure Out New Streaming Outlets Delay of new release

Constraints The demand for video games  Netflix’s does not currently offer this The 28 day window  Netflix subscribers cannot view “new releases”

Problems Dependency on USPS prices  Could cause subscription fees to increase Competitors offer video games  A service that Netflix doesn't’t Limited by content from suppliers  Some suppliers are also competitors Other companies don’t have 28 day rule on new releases

Recent Changes Post 2010 Netflix’s changes  Separated services - raising prices  Dropped Starz as a provider  Added DreamWorks  Had large losses in NFLX Value  800,000 subscribers lost

Recommendations Adjust price for bundled services Add video games Adding live TV streaming Merge with larger company

The End