Written case study
Student name: Cui yuchen
Student ID: 12685868
Netflix Inc. (Nasdaq: NFLX) is the world's largest online movie rental provider, at present the number of employees more than 2400, and more than fifty distribution center to serves its 6.7 million customers with more than 85000 DVD movie rental service. Netflix are able to provide customers more than 4000 film or TV play online watch service. The company's success comes from it can provide large number of DVD, but also it can let customers fast and convenient to get the serves, at the same time, it has the film free delivery. Netflix has five types to evaluate the customers get the most satisfied with the serves. Netflix can through the PC, TV and iPad, iPhone to watch movies. For the TV programs, Canada users need pay $7.99 per month, and the United States users $8.99 monthly, those customer who pay it, can online watch, also can free DVD by mail too. Netflix provide free Netflix App for iPhone and iPod touch (AAPL) user, it let Netflix members pay $8.99 every month through phone or iPhone iPod touch to watch TV programs and movies and do not need additional cost. According to market research firm NPD Group, they released the video about the statistics of market share. It show that Netflix take up 61% of the market share about American film video market, the market share of the apple iTunes is only 4%. Netflix was founded in 1997; its founder for Netflix is Hastings who was a mathematics teacher. Netflix main business is online movie rental. Consumers can choose directly on the Internet movie then Netflix will be have free film to the customer, and must be previous to the film entity shop. Because Netflix need To open the market, Netflix customers provisions maximum three DVD but allow indefinitely renew, customer only need to pay $21.99 monthly fee. In addition, Netflix is still has the net movie critics and movie lovers and active discussion community. Favorable price, free delivery and convenient inquires, those reason let Netflix sales has a rapid rise, In the begging, Netflix only has a San Francisco shipping center, but now, it had stores at everywhere in the United States and set up 41 supply distribution center, and members rapid breakthroughs in 1 million, Now Netflix become the largest online movie rental company.
Q1 What are Netflixs’ advantages and disadvantages over their competitors
For the advantage, Netflix can transition flow media service provider, in addition to the initial accumulation of resources (more than 12000), but also because it relies on channel advantages and many American film companies, the vendor and the proprietors sign content supply agreement, ensuring that the content library update and rich. In the video library resource input, Netflix is never the blink of an eye, in the movie resources on purchase even direct monopoly latest program. For example, in the latest case of cooperation agreement, Netflix and EPIX pay TV channel contract value of $1 billion. Netflix launched immediately Watch (Watch Instantly) services, users can Watch a new and set the TV series card House "(House of Cards) the only way. By the star Kevin Spacey flicks, director David Fincher guidance, the investment more than 100 million dollars. Moreover, Netflix success is that it not only seize the online video industry opportunities and seize the opportunity, and the Internet TV to mobile phones, IPAD etc terminal radiation. Compared with the traditional pay cable TV, Internet TV more individuation, optional more resources. Netflix has completed on cable television field layout, in 2008 through the Microsoft psu on Xbox 360 into ordinary families, and Microsoft will incorporate it into the Windows Media Center (Windows Media Center), means any equipped with Vista can put the content of Netflix delivered to the TV. Hastings respectively with SONY and samsung signed the deal made....
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