david pearl: analysis netflix

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NETFLIX CASE STUDY: STARRING DAVID PEARL!

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Page 1: David Pearl: Analysis Netflix

NETFLIX CASE STUDY: STARRING DAVID

PEARL!

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NETFLIX ! Let me show you some of my “content”…….a trip down memory lane !

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NETFLIX VALUE PROPOSITION•CONVENIENCE / USABILITY: 24-7 ACCESS TO CONTENT/RICH

CONTENT + DVD OFFERINGS•OPTIONS/PRICE: A WIDE RANGE OF PLANS TO FIT ALL BUDGETS

AND NEEDS•VALUE CHAIN: DELIVERY OF CONTENT FROM MANY SOURCES

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NETFLIX VALUE PROPOSITION•ORIGINAL PROGRAMMING: TV, MOVIES, DOCUMENTARIES.•CUSTOMIZATION: BUILT IN INTELLIGENCE THAT DIRECTS YOU TO

OFFERINGS SIMILAR TO PAST VIEWINGS• FREEDOM: NO COMMITMENT MEMBERSHIP FEES.

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IMPLEMENTATION ISSUES•2010: ATTEMPTS TO IMPROVE THE COMPANY'S

RECOMMENDATION ALGORITHM •2011: FAILED: SEPARATE DVD RENTALS INTO “QWIKSTER”•2011: LATIN AMERICA: LOSSES DUE TO OPERATING COSTS•2011: TWO TIERED PRICING: TWO PLANS, PRICE HIKES. LOSS OF

CUSTOMER FAITH

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SOME OF THE CHALLENGES NETFLIX FACED AND HOW THEY WERE OVERCOME

• LAUNCHED STREAMING OPTION TO AUGMENT DVD RENTALS• ELIMINATED AND THEN REINSTATED SINGLE SUBSCRIPTION PLAN•SPUN OFF SEPARATE COMPANY FOR DVD THEN ELIMINATED

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SOME OF THE CHALLENGES NETFLIX FACED AND HOW THEY WERE OVERCOME

• LOST INVESTOR CONFIDENCE THEN RESTORED IT 2011-2012•NEW CONTENT: STARTED CREATING OWN CONTENT AS OPPOSED

TO LIC—NOW INDUSTRY STANDARD; REV DRIVER; COST SAVER• IMPROVED SELECTION AND RECO ALGORITHM

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THINGS NETFLIX DID RIGHT TO DELIVER ON ITS VALUE PROPOSITION

• PRICES: KEPT LOW•ORIGINAL PROGRAMMING: HOUSE OF CARDS, TV, FILM, DOCS•ACCESS: 24/7 VIA STREAMING OR DVD’S

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THINGS NETFLIX DID RIGHT TO DELIVER ON ITS VALUE PROPOSITION

•OFFERINGS: INCREASED NUMBER OF OFFERINGS•ALGORITHM: INCREASED INTELLIGENCE OF SITE TO PROVIDE

FUTURE VIEWING CHOICES•VARIETY OF AFFORDABLE PLANS TO FIT ALL LIFESTYLES AND

BUDGETS

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THAT’S ALL FOLKS ! THANKS FOR COMING !AND DON’T FORGET THE POPCORN !THANKS FOR COMING ! AND DON’T FORGET THE POPCORN !