1. Netflix Company Overview EECS 441 William Klibanow
2. Products Video streaming Thousands of titles Distributed via
internet devices DVD rental Over 100,000 titles Distributed via
mail
3. Financials (NFLX) Market capitalization: Profit margin
(ttm): $4.97B 8.14% Revenue (ttm): $2.92B ROA (ttm): 17.97% Gross
profit (ttm): 23.6M subscribers $805.27M All data from Yahoo!
Finance
4. History 1997: Founded by Reed Hastings Pain of late fees
Flat, monthly fee 2002: IPO for $82.5M 2007:1B DVD deliveries 2008:
Instant streaming service
5. Anecdote Relaxing on winter break Catch up on movies, TV
shows Watch from Nintendo Wii in living room Easy interface,
minimal effort, inexpensive
6. Whats Hot? Class action law suit by shareholders Short-term
contracts expiring Split instant streaming and DVD businesses and
raised prices 2011 NFLX price range: $300 to $80.86 Executives sold
over $90M of NFLX
7. Secret Sauce Low switching costs for non-users Widely
available Inexpensive: $8/mo Cinematch algorithm
8. Competition
9. Mobile App Instant streaming Over 280,000 Android and
iPhone/iPad downloads Apple store rating: 3.5/5 Android store
rating: 4/5
10. Prediction: Negative Uncertainty with looming lawsuit
Increased competition in live streaming segment High supplier power
Difficult and expensive to obtain contracts Low cost to the
consumer