10 Year Time Line
1997 Reed Hastings and Marc Randolph co-found Netflix to offer online movie rentals.
1999 Netflix launches the subscription service, offering unlimited rentals for one low monthly subscription.
2002 Netflix makes its initial public offering with 600,000 members in the US.
2007 Netflix introduces streaming, which allows members to instantly watch television shows and movies on their personal computers.
2008 Netflix partners with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players and TV set-top boxes.
2010 Netflix becomes an app that’s available on platforms such as tablets, phones, and iPads. Netflix launches its service in Canada.
2011 Netflix launches throughout Latin America and the Caribbean.
2012 Netflix becomes available in Europe including the United Kingdom, Ireland and in the Nordic Countries.
2013 Netflix expanded to the Netherlands. House of Cards won three Primetime Emmy Awards. Netflix was the first internet TV network nominated for the primetime Emmy.
2014 In 2014 Netflix launched in 6 new countries in Europe (Austria, Belgium, France, Germany, Luxembourg and Switzerland). Netflix wins 7 creative Emmy Awards for House of Cards and Orange is the New Black. Netflix now has over 50 million members globally.
Netflix has 48 Million members 10% of America’s population Include Men & Women ages 25-34 who have internet Household incomes 50,000, kids and, a degree
Secondary Target Market Includes: Men and women aging 35-54 years of age Income at $75,000 , have a bachelor’s degree
Tertiary target market includes: Ages 25-55 with access to internet Income at $75,000 , have a bachelor’s degree Middle class, graduated from college and have children.
Anticipated Target International online streamers Video game players who access online through their systems. Xbox members with gold membership
Sony has sold over 10 million playstation 4’s More than 10 million xbox one’s have been sold Netflix has now allowed Xbox 360 users to stream netflix without gold membership.
Pay TV Subscription by Demographic Age Composition Index of Pay TV vs. Non-Pay TV Subscribers
Source: comScore Cord-Nevers
177
91 85
Cord-Cutters
107
71 Pay TV Subscribers
88
100 104
167 Ages 18-34 35-54 55+
Netflix: International Subscribers reach 12.9M
30 20 10 0 May ‘12 US
Sep‘12 International
Jan ‘13
May ‘13
Sep ‘13
Jan ‘14
May ‘14
Sep ‘14
July 2014
Strengths
Popularity and Convenience Domestically and Internationally Internet-connected devices Licensed content for streaming platform Sustained growth
Weaknesses Declining DVD Membership Streaming has become increasingly popular Decreased from roughly 11.0 million at December 31, 2011 to about 5.9 million at September 30, 2014 International Business Not Yet Profitable International operations remain in the red
Opportunities International Opportunities
European expansion has added new expenses Pay higher Value Added Tax Prioritizing long-term performance over short-run profits
Overseas Expansion Latin America, Caribbean, and Europe 180 million broadband households Further expansion in the future Latin America, Caribbean, and Europe Australia and New Zealand Original Content Original series Lily hammer, House of Cards, Orange is the New Black, and etc. Stand-up comedy specials and documentary films
Threats
Increasing Competition Amazon Prime Annual Membership Program Free shipping HBOGO CBS