Date post: | 18-Jan-2017 |
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Business |
Upload: | david-pearl |
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NETFLIX CASE STUDY: STARRING DAVID
PEARL!
NETFLIX ! Let me show you some of my “content”…….a trip down memory lane !
NETFLIX VALUE PROPOSITION•CONVENIENCE / USABILITY: 24-7 ACCESS TO CONTENT/RICH
CONTENT + DVD OFFERINGS•OPTIONS/PRICE: A WIDE RANGE OF PLANS TO FIT ALL BUDGETS
AND NEEDS•VALUE CHAIN: DELIVERY OF CONTENT FROM MANY SOURCES
NETFLIX VALUE PROPOSITION•ORIGINAL PROGRAMMING: TV, MOVIES, DOCUMENTARIES.•CUSTOMIZATION: BUILT IN INTELLIGENCE THAT DIRECTS YOU TO
OFFERINGS SIMILAR TO PAST VIEWINGS• FREEDOM: NO COMMITMENT MEMBERSHIP FEES.
IMPLEMENTATION ISSUES•2010: ATTEMPTS TO IMPROVE THE COMPANY'S
RECOMMENDATION ALGORITHM •2011: FAILED: SEPARATE DVD RENTALS INTO “QWIKSTER”•2011: LATIN AMERICA: LOSSES DUE TO OPERATING COSTS•2011: TWO TIERED PRICING: TWO PLANS, PRICE HIKES. LOSS OF
CUSTOMER FAITH
SOME OF THE CHALLENGES NETFLIX FACED AND HOW THEY WERE OVERCOME
• LAUNCHED STREAMING OPTION TO AUGMENT DVD RENTALS• ELIMINATED AND THEN REINSTATED SINGLE SUBSCRIPTION PLAN•SPUN OFF SEPARATE COMPANY FOR DVD THEN ELIMINATED
SOME OF THE CHALLENGES NETFLIX FACED AND HOW THEY WERE OVERCOME
• LOST INVESTOR CONFIDENCE THEN RESTORED IT 2011-2012•NEW CONTENT: STARTED CREATING OWN CONTENT AS OPPOSED
TO LIC—NOW INDUSTRY STANDARD; REV DRIVER; COST SAVER• IMPROVED SELECTION AND RECO ALGORITHM
THINGS NETFLIX DID RIGHT TO DELIVER ON ITS VALUE PROPOSITION
• PRICES: KEPT LOW•ORIGINAL PROGRAMMING: HOUSE OF CARDS, TV, FILM, DOCS•ACCESS: 24/7 VIA STREAMING OR DVD’S
THINGS NETFLIX DID RIGHT TO DELIVER ON ITS VALUE PROPOSITION
•OFFERINGS: INCREASED NUMBER OF OFFERINGS•ALGORITHM: INCREASED INTELLIGENCE OF SITE TO PROVIDE
FUTURE VIEWING CHOICES•VARIETY OF AFFORDABLE PLANS TO FIT ALL LIFESTYLES AND
BUDGETS
THAT’S ALL FOLKS ! THANKS FOR COMING !AND DON’T FORGET THE POPCORN !THANKS FOR COMING ! AND DON’T FORGET THE POPCORN !