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Business Overview of Netflix Company

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Executive Summary

Netflix is a production company that offers a top content platform in America. Its

headquarters is located in Los Gatos, California. The company was founded in 1997; its primary

business is offering online streaming services on a broader library ranging from series, movies,

and televisions. The data collected in 2020 about the company shows that it already has 195

million subscriptions that have been already paid globally, 73 million subscriptions being in the

US (Burroughs, 2019). It has its branches worldwide, except few countries such as China, Syria,

etc., that have restrictions on using the Netflix services. The company belongs to the Tech &

Entertainment industry, which is a mass media industry. The main products of Netflix company

are video streaming; however, on-demand. Its main offices are located in France, the UK, and

Japan. It belongs to the Motion Picture Association that deals with the production and

distribution of video content in various countries worldwide. It started by sending DVDs using

mail and slowly grows into a big company in America.

Considering the company's economic outlook, it can generally be described as a big

company that generates many revenues and creates employments for many citizens in America.

This means the company has contributed to the economy by reducing the rate of unemployment.

Based on the 2019 financial year, the company's revenue was $20.156 billion, while the income

that resulted from operating was $2.604 billion, which resulted in a net income of $1.8 billion

(Dias & Navarro, 2018). Since the company is growing, its aim of securing the rights of its

contents has made it rack up a lot of billions in terms of debts. Despite this, the company is

focused on ensuring that the debt is settled and the distribution of services are not interrupted.

Since the company has grown and is still growing, its employees are 8,600 as per the

2019 data collected from the company. The company started by selling DVDs through the mail;
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however, its success is attributed to an increase in DVD rental companies. Among the

competitors of Netflix are Hulu Plus and Redbox. However, the company's competitive

advantage is attributed to its proposition in pricing its products. The pricing technique has

enabled the company to gain a competitive advantage against competitors such as Stan in

Australia. Moreover, it produces original content apart from streaming content from other

companies and parties (Burroughs, 2019). The market value of Netflix is $25 billion after soaring

an extra stock of 12%. However, as of November 2020, the company's market cap was &212.85.

the one-year return depends on how the company issues its stocks and shares, which indicates a

clear improvement from the past 18 years.

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References

Burroughs, B. (2019). House of Netflix: Streaming media and digital lore. Popular

Communication, 17(1), 1-17.

Dias, M., & Navarro, R. (2018). Is Netflix Dominating Brazil. International Journal of Business

and Management Review, 6(1), 19-32.