Netflix Inc.

S.W.O.T. Analysis Strengths: ? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores.

There is not due date or late fees. And finally, once you have viewed your movie return it to Netflix and get another movie from your list. More that 95% of subscribers live within 1 business day delivery. Netflix delivers over 1.8 million DVD’s each day. Here are a few Netflix facts.

Three DVD’s can be out at a time, as soon as one is returned the next DVD on the subscriber generated movie list is shipped out. The DVD’s are delivered for free by the United States Postal Service from regional distribution centers located throughout the United States. Netflix can have most titles delivered to 90% of its subscribers within one business day of the shipping date. The company provides a personalized movie recommendation service that creates customized recommendations for the subscriber. This system is based on customer rental history and the ratings the customers provide to Netflix.

The Netflix model allows customers to pay a monthly subscription fee for which they receive as many movies as they want in a month. The subscribers order DVD’s via the firms website and delivered through the United States Postal Service. Subscribers keep the movie as long as they want and when finished return it to Netflix in a postage paid envelop. Netflix’s derives a much of their competitive advantage from their ability to offer each subscriber convenience and a personalized experience. The firm’s CineMatch software gathers data from subscribers’ online profiles, movie rental history and a subscriber’s movie ratings to develop a person... ... middle of paper ... ...iding convenience, selection, personalization and a low cost method for product delivery.

Netflix is not an ad-based business, profiting entirely from subscription fees. Netflix found its success by discovering that audiences would be willing to pay a set fee, at the time of typing eight dollars per month, in order to watch television programs or movies uninterrupted by annoying and constant advertisement. Reed Hastings, in his interview with the New Yorker, compared the Netflix option to reading a book, with all chapters or episodes available from the get go, leaving the pace at which consumption takes place up entirely to the viewer, be it an episode at a time or a “binge”.In a way, television is not so much changing as it is being replaced. The digital option is preferable to viewers who increasingly feel programs being offered at immovable set times is a way of the past. The beginnings of television ironically appear to mirror the rise of streaming services.

Along with an extensive collection of titles, the Netflix service also includes access to movie ratings, reviews, and personalized movie recommendations. Netflix ships DVDs to customers through first class mail and rentals are then returned in pre-paid envelopes. The entire transaction is free of cost to the customer. To ensure timely deliveries and returns, Netflix has established an extensive distribution network of shipping centers across the United States. Recently, Netflix h... ... middle of paper ... ...o maintain profitability and market share in the long-term it must align the Studios’ profit interests with its own.

Current Goods and Services The company Netflix is known as a storehouse of content. (Investopedia, 2015) The content includes movies, documentaries, TV shows and educational programs. Viewers pay a flat monthly fee to view the videos anytime and on any type of platform. They also offer a mail order DVD rental through DVD.com. This service allows you to list DVD on a queue to be mailed for viewing and consumers are never charged a late fee.

Netflix Strengths Netflix provides a subscription-style e-commerce service. Customers only need to sign up and pay $13.95-39.95 a month to borrow as many as 2-9 movies at a time with no monthly limit. If customers quickly watch the DVD and send them back, the monthly fee pays for quite a few movies. The relatively low monthly fee enables Netflix to compete with Blockbuster and other brick-and-mortar video rental business. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee.

Carmike Bellevue is eleven dollars and twenty-five cents per adult ticket). The average person’s budget cannot afford to splurge on movie tickets everyday; however Netflix offers their full collection of programs with a maximum cost of eleven dollars and ninety-nine cents a month. For this price not only do you get all their films, but you also get Ultra HD and are allowed to have up to four people watching at a time. Netflix offers three different plans: basic (seven dollars and ninety-nine cents per month), standard (nine dollars and ninety-nine cents per month), and premium (eleven dollars and ninety-nine cents per month). A plus for Netflix would be that the first month is free for any given plan and is watchable on laptops, tvs, smartphones and tablets.

With the touch of a button, subscribers are able to watch their favorite movies, without ever leaving their seats from anywhere in the world. Netflix also continues to provide a DVD by mail service, which delivers movies and television shows directly to patrons’ mailboxes. At a separate cost, the DVD service can be subscribed to in addition to the streaming service or it can be purchased without the streaming service, if preferred. Cost/Value Netflix is an exceptionally low cost option for in-home entertainment. At a price point of only $7.99 per month—just over a quarter per day—considering how many movies may be viewed in such time period, its unlimited streaming servic... ... middle of paper ... ...he past, as well as suggestions based on what is popular amongs others, and now there is even an option to connect to Facebook in order to see what your friends are watching.