NETFLIX: The Public Relations

Box Office FlopPresented by-

Kuhu Pathak

Abhijeet Thorat

Case Synopsis-

• The world’s largest internet subscription service for watching

movies and TV instantly with more than 25 million members

worldwide.

• Netflix is revolutionizing the way people watch movies and TV

shows by streaming directly to them.

• Netflix has become the preferred online provider of the

entertainment experience in the U.S.A.

• Netflix streams on:

• Microsoft

• Xbox 360

• Nintendo Wii

• Sony PS3 console

• Blu-ray disc players

• Internet-connected TVs

• Home theater system

• Internet video players: Apple iPhone, iPad and iPod touch, Android devices, as well

as Apple TV and Google TV.

• During the first quarter of 2011, sales and rentals of packaged DVDs and

Blu-ray Discs plunged about 20 percent, and the sell-through of packaged

discs fell 19.99 percent to $2.07 billion, with more money spent on

subscription rentals than in-store rentals

Fast facts

Spilt into two companies.

Increased prices 60%.

In 2003, 1st Operating profit achieved.

Focused on Content Online Streaming.

1997- Reed Hastings & Marc

Randolph founded Netflix

1999- Change of plans-Monthly

fee

2000- 300,000 subscribers(but still in losses)

May 2002-released IPO

2003- 1st

operating profit2007- 1 Billionth

DVD rented

2010- Global Expansion

2011, Sept-Prices Increased

60%2011, Qwikster

Timeline-

Lack Of Communication

Price Increase

Response time

Lack of comparable selection between DVDs by mail and Instant Stream

Customer’s dissatisfaction

Not developed business strategy

Brand Image Degradation

Netflix statistics

0

5

10

15

20

25

2007 2008 2009 2010

Members In millions

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010

Net Income in $million

Recommendations: Alternative Business Models

Bundle services with

pay-tv packages.

Less money from more customers =

Revenue boost

Less competition = Lower licensing fees

Customers sign up for

service directly on

AppleTV & pay through iTunes.

Reach more customers = Revenue

boost

Partner with gaming

companies to offer on-

demand video game services.

New customer segment = Revenue

boost

Develop “HBO quality” original content.Lure & retain

customers with content that’s untouchable by competitors = Revenue boost

Conclusion

• Customers still enjoy Netflix capabilities

Mostly good feedback

Netflix performs well against competitors

Supporters create social media buzz

• Price, prompt delivery, communication method

Main obstacles: