CHAPTER

CHAPTER 9:
9: ONLINE
ONLINE MEDIA
MEDIA

CASE STUDY

NETFLIX
HOW DOES THIS MOVIE END?
E - commerce
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Trần Thị Đào Bảo Hà Nguyễn Ngọc Nguyễn Lê Trang Nhung

Phương Thảo Diệp Hương Giang

1911150068 1911150027 1911150018 1911150024 1911150058

OUTLINE
Case Summary

Case Study Questions

Lessons for Vietnam Business

PART
1
CASE SUMMARY
Introduction
Netflix is an American media services provider and
production company. It was founded in 1997 by 2
Silicon Valley entrepreneurs: Marc Randolph and
Reed Hastings.

They got its start as a mail order company renting

DVDs and it has become the largest player in the
movie and Tv series streaming market.
 Milestone
The largest player in the movie
and TV streaming market with 83
A video-on-demand million worldwide subscribers,
Netflix switched to a streaming service of 3.5 million new subscribers outside
subscription model movies the United States

2000 2007 2016

1997 2006 2015 Today

Netflix was established The largest subscription Revenues were $6.7billion, Netflix accounts for over 90% of
provider of DVDs Profits were a paltry $122 digital movie streaming
million. Netflix profit
margin is less than 2%
The largest database on consumer video preferences

As much a technology company as a content company

The content creation business

Collaborated with some of the leading film studios in the Us

PART
2
CASE STUDY QUESTIONS
1. What are three challenges
that Netflix faces?

 The cost of content is very high,

and surpassing revenues.

 There is high risk with creating

new content and Netflix has
limited experience in this area.

 Netflix has tough competitors

that cover technology, content
creation and content distribution
(Google, Apple, HBO, Amazon).
 2. What are the key elements
of Netflix’s strategy today?

 Develop high speed Internet service

to its customers.

 Reduce content costs by producing

their own content.

 Expand globally to take advantage of

a whole new market.

 Expand offerings of quality television

series.
3. What are the implications of
Netflix’s new strategy for the
cable television systems like
Comcast and TimeWarner?

 Their own original content

 Doesn’t require any installations or

the purchase of channel bundles.

 Low to moderate monthly fee

 No advertisements
4. Why is Netflix in competition with
Apple, Amazon, and Google, and what
strengths does Netflix bring to the
market?

Apple, Amazon and Google are also providing

the same service that Netflix provides, which is
giving customers movie access over the
Internet.
 Netflix’s strengths

• The largest database and

recommendation system.

• Brand name recognition.

• An increasing number of
production studios supplying
original content.
PART
3
LESSONS FOR VIETNAM BUSINESS
 Lessons for Vietnam
Businesses

 Be creative and flexible

 Keeping up to the new technology

 Collect more databases to create the

right message to the right customer
E-COMMERCE
E-COMMERCE

CASE STUDY: NETFLIX

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