MGMT 499 Netflix Case
Nuredin Abdulahi
Course: MGMT 499
Case Study: Netflix
Netflix’s Case
1. What is Netflix's strategy? How did it change over time?
Netflix had a multipronged strategy to build an ever growing subscriber base strategy.
The first strategy is providing a comprehensive selection of DVDs for their subscribers. For example, due to its diverse selection of DVD titles, its library of offerings had grown from some 55,000 titles in 2005 to about 120,000 titles in 2012. (C-140)
The second strategy is building and maintaining mutually beneficial relationships with entertainment video providers. For instance, in 2011, Netflix was able to negotiate access to certain films produced by Lionsgate within one year of their initial theatrical release for showing to members in UK and Ireland). Netflix also negotiated a number of exclusive rights to show a number of titles produced by several studios. (C-141)
The third strategy is making it easy to use movies and TV shows. Netflix developed a software technology that enables subscribers to easily scan a movie’s length and its appropriateness for various types of audiences. Netflix movie recommendation tools helped subscribers to identify titles they are more likely to enjoy. (C-142,143)
The fourth strategy is giving subscribers a choice of watching streaming content or receiving quickly delivered DVDs by mail. The strategy was to establish fast delivery of DVDs ordered by subscribers within one business day; and to track the location and to achieve return capability of each DVDs using sophisticated software. (C-143)
The fifth strategy is spending on marketing and advertising the Netflix’s brands and services. For example, Netflix used multiple marketing channels to attract subscribers including online advertising. Netflix worked with the makers of Netflix0ready electronics devices to expand the number of devices on which subscribers view their contents. (C-144)
The sixth strategy is the 2012 core Netflix strategy, promoting rapid
Course: MGMT 499
Case Study: Netflix
Netflix’s Case
1. What is Netflix's strategy? How did it change over time?
Netflix had a multipronged strategy to build an ever growing subscriber base strategy.
The first strategy is providing a comprehensive selection of DVDs for their subscribers. For example, due to its diverse selection of DVD titles, its library of offerings had grown from some 55,000 titles in 2005 to about 120,000 titles in 2012. (C-140)
The second strategy is building and maintaining mutually beneficial relationships with entertainment video providers. For instance, in 2011, Netflix was able to negotiate access to certain films produced by Lionsgate within one year of their initial theatrical release for showing to members in UK and Ireland). Netflix also negotiated a number of exclusive rights to show a number of titles produced by several studios. (C-141)
The third strategy is making it easy to use movies and TV shows. Netflix developed a software technology that enables subscribers to easily scan a movie’s length and its appropriateness for various types of audiences. Netflix movie recommendation tools helped subscribers to identify titles they are more likely to enjoy. (C-142,143)
The fourth strategy is giving subscribers a choice of watching streaming content or receiving quickly delivered DVDs by mail. The strategy was to establish fast delivery of DVDs ordered by subscribers within one business day; and to track the location and to achieve return capability of each DVDs using sophisticated software. (C-143)
The fifth strategy is spending on marketing and advertising the Netflix’s brands and services. For example, Netflix used multiple marketing channels to attract subscribers including online advertising. Netflix worked with the makers of Netflix0ready electronics devices to expand the number of devices on which subscribers view their contents. (C-144)
The sixth strategy is the 2012 core Netflix strategy, promoting rapid