Netflix Marketing Case Analysis

They use the argument that WWE is worldwide at this point and should see more aggressive growth in the coming years. 25% growth for 2016 would lead to just over 1.4m average paid subs for the year. I believe that Q4 may come in a little bit higher than Q3 because of the increased attention that the fan base has now. Along with that, they have increased the amount of content available in the library, increased the devices of which the network is available, and have now brought out in full force the WWE Network prepaid gift card which should be a nice stocking stuffer for this Christmas. January of 2016, WWE will be releasing the network to Germany and Japan.

This will definitely increase the current earnings of the Amazon.com. The company is facing major shifts towards cloud computing and system infrastructure. As online shopping becomes more popular processing orders and distributing merchandise becomes more complex and difficult. Growth of market in various countries traded by Amazon.com including Europe will need taking the precautions to deal with increase in demand. (Schepp, 2009:12).

Its design and traffic management play key roles on its network infrastructure (The ISP Speed Index, 2014). The main strategy of Netflix is to attract more subscribes to the online video streaming service. Amazon, Blockbuster, Walmart, Redbox were some of the competitors of Netflix in movie rental. Netflix consumes about 29.7% of peak downstream traffic because of its online video streaming service. (Adhikari, et al., 2012).

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.

Currently Netflix is seeing mass amount of growth in its streaming customer base so there will be plenty of growth in the next few years allowing for Netflix GO to catch a hold of the new customer base. The threat that runs to parallel to this is that many more streaming services are on the rise and are beginning to gain popularity such as Hulu Plus, HBO Go, and Philo TV. These services could mitigate the number of subscriber growth that Netflix is currently receiving or could develop a similar streaming product such as Netflix GO. A second opportunity for Netflix is the partnership with a large tablet producing corporation such as Microsoft or Sony whose sales may be threatened by Netflix Go. In contrast, the threat becomes whether or not one of these tablet producers is resistant to a partnership with Netflix to produce Netflix GO or partners with another streaming service such Hulu Plus instead.

The Netflix's streaming business had grown so quickly that within months the company had shifted from the fastest-growing customer of the United States Postal Service's first-class mail service to the biggest source of Internet traffic in North America in the evening. Netflix is considered to be the most successful dot com venture by The New York Times. The company announced the rebranding and restructuring of its DVD home media rentals. From the start the company operated in Unites States and now it is expanding in various continents and has captured various markets. With the recent pricing strategy where substantial increase in the monthly subscription has impacted the company negatively causing a loss in customers.

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.

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.

Netflix utilizes a number of different advertising methods. Netflix created a coupon in the form of an enlarged movie ticket offering a free month of service. These “movie tickets” are given out at cash registers at all Best Buy stores and are included in packing boxes of most of the major DVD player manufacturers (Sony, Philips, Toshiba, Panasonic, RCA, etc.). Best Buy’s website also has a link directly to Netflix which is under the “DVD rental service” drop down menu. Each DVD mailer sleeve from Netflix includes a tear off “tell a friend” certificate with a promotion code that provides the bearer with a free month of service.

Its mission was offering million books to its customers. Amazon has grown relatively fast and its CEO Bezos has introduced variety of innovations as source of competitive advantage to strive and create the most successful company by adding most value to its customers and shareholders. Bezos continued to diversify Amazon’s offerings with the sale of CDs and videos in 1998, and later clothes, electronics, toys and more through major retail partnerships. Right in 1997, Amazon’s stock began trading in NASDAQ stock exchange. It boomed with yearly sales that jumped from $510,000 in 1995 to over $17 billion in 2011.