Netflix Marketing Strategy in Eastern and Central Europe
Ignacio Fernández Campos (H1450076)
Julia Rodríguez González (H1450361)
Inmaculada Delgado González (H1450075)
Karl Kallio
Lydia Taylor
Introduction
Netflix is the world’s largest subscription-service company that sends DVDs by mail and streams movies and TV episodes over Internet. This company was founded in 1998 in Scotts Valley, California by Marc Randolph and Reed Hastings. The company was established in 1997 and is headquartered in Los Gatos, California. The option for monthly subscriptions appeared in 1999 and the pay-per-rental model was dropped one year later. In 2007 Netflix introduced streaming, which allowed members to watch instantly television shows and movies on their personal computers and in the following 3 years Netflix partnered with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players, TV set-pop-boxes, PS3. Finally, Netflix launched an app on the Apple iPad, iPhone and iPod Touch.
The company has built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per title rental fees.
The expansion of Netflix into International Markets first occurred in 2010 when streaming became available in Canada. The following year the company underwent its largest expansion to date, entering Latin America and in 2012 began its expansion to Europe. Currently, Netflix is available in 14 European countries including the UK, Scandinavia, the Netherlands and recently this year 6 additional European countries: Germany, Austria, France, Belgium, Luxembourg and Switzerland were added to the list. However, Netflix is not available in any of the Central and Eastern European countries.
Our group is analysing if it would be beneficial for Netflix to enter the Central and Eastern European market, particularly the Czech Republic.
For this analysis two methods will be used. Porter’s Five Forcers will be the initial method utilised because it is an effective and
Julia Rodríguez González (H1450361)
Inmaculada Delgado González (H1450075)
Karl Kallio
Lydia Taylor
Introduction
Netflix is the world’s largest subscription-service company that sends DVDs by mail and streams movies and TV episodes over Internet. This company was founded in 1998 in Scotts Valley, California by Marc Randolph and Reed Hastings. The company was established in 1997 and is headquartered in Los Gatos, California. The option for monthly subscriptions appeared in 1999 and the pay-per-rental model was dropped one year later. In 2007 Netflix introduced streaming, which allowed members to watch instantly television shows and movies on their personal computers and in the following 3 years Netflix partnered with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players, TV set-pop-boxes, PS3. Finally, Netflix launched an app on the Apple iPad, iPhone and iPod Touch.
The company has built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per title rental fees.
The expansion of Netflix into International Markets first occurred in 2010 when streaming became available in Canada. The following year the company underwent its largest expansion to date, entering Latin America and in 2012 began its expansion to Europe. Currently, Netflix is available in 14 European countries including the UK, Scandinavia, the Netherlands and recently this year 6 additional European countries: Germany, Austria, France, Belgium, Luxembourg and Switzerland were added to the list. However, Netflix is not available in any of the Central and Eastern European countries.
Our group is analysing if it would be beneficial for Netflix to enter the Central and Eastern European market, particularly the Czech Republic.
For this analysis two methods will be used. Porter’s Five Forcers will be the initial method utilised because it is an effective and
References: O 'Brien, C. (2014, September 28). Netflix struggles to win over skeptics in film-loving France. LATimes . “Press Release: Prague” (2013). Unicredit Bank. Retrieved 17 December 2014 from: https://www.unicreditbank.cz/en/web/about-us/press-centre/press-releases/unicredit-bank-czech-middle-class-is-growing-and-does-not-cut-its-children-short “Project Report on Netflix” (2013) Netflix.com. Retrieved 16 December 2014 from: http://michaelwessel.weebly.com/uploads/6/8/1/0/6810798/netflix.pdf SBSonDemand Smith, C. (2014, September 15). Netflix finally kicks off its next attack on Europe, starting with France . BGR .