NETFLIX For more information about Netflix click here

NETFLIX For more information about Netflix click here Nia Mair

Table of Contents v What is Netflix? v How does Netflix work? v How successful is Netflix? v What helps to makes Netflix successful? v How successful will Netflix be in 4 years?

What is Netflix? • An American global provider of streaming films and television series

How does Netflix work? 1. Go onto your country’s Netflix website i. www. Netflix. com ii. www. Netlfix. it iii. www. Netflix. uk 2. Begin the membership registration 2. Choose the monthly plan that best suits you ($8$12) 3. Input credit card details 4. Access 5000+ television shows and movies

How successful is Netflix? Netflix’s had immense success since its 2007 launch of video streaming v Now, bigger than CBS network and Comcast( largest broadcasting and television company in the *world*) v The world’s leading internet television network (190+ countries and 125+ million hours of streamed television shows and movies per day) v Has had/ is having the biggest gain in the technical industry v As of 2016, an annual revenue of $6. 7 Billion v Received 14 Emmys, 2 Golden Globes, 6 SAGs for its original series

What helps to make Netflix so successful? • Innovations • Competition • Work environment(CEO, Employees & Management Strategies)

Innovations v Netflix was named the 27 th most innovative company by Forbes in May 2015 1997 -2006: Only a home DVD rental service 2007: Launched video streaming only for PCs 2008 -2010: Allowed streaming on all internet connected devices 2016: Netflix is available worldwide

Worldwide Subscribers 150 127 100 50 44 131 138 57 75 0 2013 2014 Netflix HBO 2015 Total Subsciption Revenue(in billions) • Netflix distinguishes itself from its competitors by providing: • 5000+ TV shows and movies • High profile classic shows • Cancelled TV shows • Kids shows • Netflix original TV series and movies • Original programs from outside of USA Subscribers(in millions) Competition $8, 00 $6, 00 $4, 70 $4, 60 $4, 20 $3, 50 $6, 10 $4, 70 $2, 00 $0, 00 2013 2014 Netflix HBO 2015 v A comparison of Netflix (19 year company) and HBO (44 year company) increase in worldwide subscribers and total subscription revenue in 3 years.

CEO Reed Hastings’ Management Strategy: v Netflix employees do not have a vacation policy. Employee Freedom and Responsibility Act in Netflix’s Best Interests v “Outstanding” employees only. Rewarded generously for performance not effort. ‘Realize Bigger Isn’t Worse’ Netflix’s Optimum Performance v The CEO makes as few decisions as possible. v The median salary of Netflix’s 3500 employees, is $180, 000.

How successful will Netflix be in 4 years? v The exponential smoothing forecast method, with an alfa of. 15 and a (1 -alfa) of. 08, was used to find the forecast of years 2013 – 2015. 2016 and on, due to a lack of data, the weighted moving average was used to find the forecasts. Forecast of Netflix worldwide subscribers 20162020 Year Netflix HBO 2013 44 127 2014 57 138 2015 75 131 Forecast of Netflix total subscription revenue 2016 -2020 Alfa 0. 15 (1 -Alfa) 0. 85 Netflix Forecast Year Netflix HBO Netflix Forecast 2013 $3. 50 $4. 20 44. 00 2014 $4. 70 $4. 60 $3. 50 45. 95 2015 $6. 10 $4. 70 $3. 68 2016 50. 31 2016 $4. 04 2017 46. 75 2017 $3. 44 2018 47. 67 2018 $2. 92 2019 48. 24 2019 $2. 48 2020 47. 56 2020 $2. 11 *(In millions) *(in billions)