The Rise of Netflix and Global

Expansion Challenges.
2023 | PG | Hardly 15m | Analysis
A Strategic Analysis
Presented by: Surya, etc
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Introduction
• Netflix, once a DVD-by-mail service, has transformed into a global streaming giant, reshaping the landscape of home
entertainment. With a strategic emphasis on international expansion, Netflix has encountered both triumphs and
challenges. This presentation delves into the pivotal moments that marked Netflix's rise and the obstacles it faced during
its journey to becoming a global streaming powerhouse.
• Subscriber Growth Overview: At the heart of Netflix's success lies its remarkable subscriber growth. From its humble
beginnings in 1997, Netflix has witnessed exponential growth, reaching an estimated 74 million subscribers worldwide
by January 2016. This astounding ascent has been fueled by a strategic shift from traditional DVD rentals to internet
streaming, reflecting the evolving preferences of modern consumers.
 Netflix's Global Impact
• Netflix is available for streaming in more than 190 countries. Our library of TV shows and movies varies based on
the country, and it changes from time to time.
Netflix isn't available in:
• China
• Crimea
• North Korea
• Russia
• Syria
 Netflix Revenue Breakdown

Company Overview 11%

97% for you | PG-13 | 2m | Intro

The company’s subscription-based model, where a flat 13%
fee of $7.99 per month grants access to a vast digital
library of movies, TV shows, and original content. The 44%
snapshot includes Netflix's global subscriber count of
74 million as of January 2016.
Play

31%

USA and Canada Europe, Middle East, and Africa

Latin America Asia-Pacific
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Evolution and Disruption

97% for you | PG-13 | 2m | Intro
The chronological evolution of Netflix,
emphasizing its transformative journey from a
DVD-by-mail service to a dominant force in
internet streaming. The timeline spans key
milestones such as the introduction of
subscription-based services and the subsequent
shift to internet streaming in 2007.

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1997 - DVD
The Impact on Blockbuster start up
97% for you | PG-13 | 2m | Impact 2000 – Netflix
Queue
•2000: Blockbuster snubs Netflix acquisition, Netflix grows
online rentals. 2007 – Video
•2004: Blockbuster fumbles online efforts, Netflix expands Streaming
streaming.
•Late fees, high prices, physical focus: Blockbuster alienates 2011 - 1st Netflix
customers. Original
•Redbox, streaming services: Competition 2011 – Expansion
intensifies, revenue plummets. outside US and
•2010: Debt-laden Blockbuster files for bankruptcy. Canada
•Netflix thrives on agility, adaptation, and customer focus. 2015 - #Netflix
and Chill
2015 - Expansion
#NetflixEverywher
e
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Shift to Internet Streaming and

VOD
This slide delves into Netflix's strategic decision to transition from mail-order DVDs to internet streaming and
Video-On-Demand (VOD) in 2007. It highlights the company's foresight in predicting the decline of DVD sales
and the rising demand for streaming services.

1 2 3 4 5
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Business Model and Industry Overview

97% for you | PG-13 | 2m | Industry overview
•This slide provides insights into Netflix's revenue model,
highlighting the subscription system where subscribers pay a
monthly fee for access to a digital library. It also notes the
significant contribution of the DVD-by-mail business in
generating cash flow, emphasizing its relevance even amid
the company's transition to streaming.

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Competition and New Strategic Initiatives

Competitive Landscape Overview:
• This slide introduces the competitive landscape by acknowledging industry players like Hulu and Amazon
Video. It highlights the trend of companies seeking exclusive licensing agreements with content providers to
gain a competitive edge.
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Challenges in Global Expansion

This slide delves into the challenges Netflix faced during its global expansion. It outlines key challenges,
including regulatory restrictions, the need for local adaptation, and the financial costs associated with entering
new markets.

Source: Netflix
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Netflix's Global Domination:

1.Data-Driven Personalization:
1. Analyzed regional preferences to create locally
relevant originals (Squid Game, Money Heist).
2. Used algorithms for tailored
recommendations within each market, boosting
engagement.
2.Flexible Adaptation:
1. Offered tiered subscription models catering to
income differences and market preferences.
2. Localized user interfaces and marketing resonated
with diverse cultures and languages.
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Financial Costs of International

Expansion
This slide focuses on the financial implications of Netflix's international expansion, shedding light on the
investment costs incurred during this ambitious endeavor. It emphasizes the direct costs associated with licensing
deals, marketing, distribution, and technology expenses.

Source: Yahoo Finance

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Conclusion and Future Outlook

97% for you | PG-13 | 2m | Industry overview
•Crowning Achievement: Netflix sits atop the throne, boasting the world's largest
streaming subscriber base, captivating audiences across continents and cultures.
•Content that Conquers: From "Squid Game" to "Money Heist," our international
originals resonate globally, proving language is no barrier to captivating storytelling.
•Leaving Rivals in the Dust: Compared to competitors like Amazon and
Hulu, our subscriber growth and market share soar, solidifying our undisputed
leadership position.
•Innovation is Our Crown Jewel: We continuously invest in personalization, cutting-
edge technology, and diverse content, keeping viewers glued to their screens and
ahead of the curve.
•Financial Fortress, Global Expansion: Our robust financial health fuels strategic
acquisitions and expansion, ensuring we remain the undisputed king of streaming
entertainment worldwide.
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 Presenters

Name 1 Name 2 Name 3 Name 4 Name 5