susmitha annamaneni netflix
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Netflix: Case Study
Presented by
Susmitha Annamaneni
Overview World’s largest online movie rental service
Founded by Reed Hastings
Established in 1998 and headquartered in Los Gatos,California
More than 90,000 DVD titles
Offers flat rate rental-by-mail to customers
Growing library of more than 5,000 choices that can bewatched instantly on their PCs
Over 6.7 million subscribers
They have over 55 million discs and ship 1.6 million aday, on average
Corporate History Netflix was incorporated on August 29, 1997 Began operations on April 14, 1998 Initiated an initial public offering (IPO) on May 29, 2002selling 5,500,000 shares of common stock at the price of
US$15.00 per share On June 14, 2002, it sold an additional 825,000 shares of
common stock at the same price Netflix posted its first profit during fiscal year 2003 Netflix mails about 190,000 discs per day to its 670,000
monthly subscribers. Subscriber counts have increased from one million by the
fourth quarter of 2002 to around 5.6 million at the end ofthe third quarter of 2006
How Netflix Works?
Features
Instant Viewing
Queue
Browse
Movie Recommendations
Community
Netflix Facts
Ratings
Rental Habits
Recommendations
CustomerSatisfaction
Inventory
Volume
Environment
Services
Flat-fee service
Various plans
Sells gift subscriptions
Instant Viewing
Sells used DVDs to its subscribers
Pricing Levels1 at-a-time (2 a month) - just $4.99 a month1 at-a-time (Unlimited) - just $8.99 a month2 at-a-time (Unlimited) - just $13.99 a month3 at-a-time (Unlimited) - just $16.99 a month4 at-a-time (Unlimited) - just $23.99 a month5 at-a-time (Unlimited) - just $29.99 a month6 at-a-time (Unlimited) - just $35.99 a month7 at-a-time (Unlimited) - just $41.99 a month8 at-a-time (Unlimited) - just $47.99 a month
Marketing Strategies
Pay-for-performance banner fromyahoo, MSN, AOL
Search-engine Third party download ads and logos Best-buy to include flyers Free trials Shared revenue with studios
Competitors
Blockbuster, Inc. Wal-Mart Stores, Inc. Amazon. COM, Inc.
Netflix Growth
Achievements
Number #1 website in Spring 2005 ,Spring 2006, and Spring 2007
Fall 2005 - Annual Customers FirstAward
January 2007 - Retail Innovator ofthe Year
References http://www.netflix.com/MediaCenter?id=5379&hnjr
=8#snapshot http://en.wikipedia.org/wiki/Netflix http://www.fundinguniverse.com/company-
histories/Netflix-Inc-Company-History.html http://ir.netflix.com/