This website uses cookies to ensure you have the best experience. Learn more

Netflix Appraisal Essay

4284 words - 18 pages

| 2012 |
| Prof. Gervais
Victoria Skarbinski
|

[Netflix] |
A case analysis on the movie rental company Netflix. |

The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system.
Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent.
Netflix’s strategy so far has included offering various plans that incorporate unlimited streaming to a viewing device from the internet and a mail order system that sends physical DVD’s to the customer for an unlimited amount of time without any additional fees (so ...view middle of the document...

The movies then are shipped out after subscribers go online and add titles to their wanted list. The movies are then shipped to them on a ‘receive, view, return and repeat’ basis. Whereas with the competitors, if one specific store (or vending machine) does not have the title the member is looking for, it may take a few days to get the movie in through store to store exchange. Sometimes, the member may have to go to various stores in the chain to find the video they want. In both cases with competitors, this is seen as an inconvenience.
By offering both video [streaming] on demand or VOD services through the use of an internet compatible device, and one day delivery of physical DVD’s Netflix, may be portrayed as the best contender in the movie rental industry. The availability of VOD services attracts the younger tech savvy target markets of Generation Y and the Millennial’s, while the mail order DVD’s attract the older Baby Boomer and Generation X target markets. This not only gives subscribers more options, but satisfies everyone equally, giving Netflix the competitive advantage based on its perceived value and market coverage as a video provider.
The various subscription categories and prices attract customers of all different economic backgrounds. By offering unlimited mail delivery movies starting at $8.99 a month that subscribers could keep for an unlimited amount of time and never have a late fee, Netflix ‘out-did’ most of their competitors. This is so, based on the fact that competitors charged per-DVD rates, limited the amount of time members could have a DVD in their possession and penalized members for bringing the movie back past its, usually one week or less, due date. Netflix also has the competitive advantage because the company pays postage on all DVD’s that are shipped to and from a subscribers home. Then by including unlimited streaming, Netflix provides even more incentive for subscribers to enroll in a plan because they have the ability to watch over 14,000 movies and TV shows while they wait for their next DVD to arrive in the mail. This offers a competitive advantage because subscribers do not have to pay any additional fees for the streaming.
The idea of a free one month trial is something that attracts many prospective subscribers to the Netflix approach. Whenever a subscriber signs up for Netflix, the company automatically enrolls them to have their first month free as a type of ‘try before you buy’ incentive. If the subscriber does not like the service they have signed up for, all they need to do is cancel before their first month is up and Netflix cancels their subscription. This provides the company with an advantage over their competitors because it alleviates any skepticism of how the process works therefore building the necessary trust from subscriber to company.
2. Analyze the evolution of the US market between 2006 and 2009 and the Netflix subscriber data (exh. 1&2). Identify 5 to 6 key success...

Other Papers Like Netflix Appraisal

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages -Behavior Therapy, 26(2), 63-88. Ellis, A. (2000). Can rational emotive behavior therapy (REBT) be effectively used with people who have devout beliefs in God and religion. Professional Psychology: Research and Practice, 31 (1), 29-33. Jones, S.L., & Butman, R.E. (1991). Modern psychotherapies: A comprehensive Christian appraisal. Downers Grove, IL: InterVarsity Press. Lega, L.I., & Ellis, A. (2001). Rational emotional behavior therapy (REBT) in

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

Related Essays

Case 6: Netflix Essay

2737 words - 11 pages distribution of their product. The amount of movies produced all depends on them. If suppliers decide to vertically integrate forward, businesses like Netflix and blockbuster will definitely be wiped out of business. * Buyers- these are the people that accept the market prices. They have no say although the market works to satisfying their needs. They have limited choice in terms of finding other entertainment sources except visual

Case Study 4

1513 words - 7 pages allow for a larger increase in subscribers when people looking for that content learn it is available. This is where their aggressive marketing will come in. The bottom line is Netflix is striving to have the largest selection, best price, and simplest process as their strategy. 7) What is your appraisal of Netflix’s operating and financial performance based on the data in case Exhibits 2, 3, and 4? What positives and negatives do you see in

Hrm Book By Garry Essay

5088 words - 21 pages Appraisal 308 BASIC CONCEPTS IN PERFORMANCE MANAGEMENT AND APPRAISAL The Performance Appraisal Process 310 Why Appraise Performance? 311 • HR AS A PROFIT CENTER: Setting Performance Goals at Ball Corporation The Importance of Continual Feedback Performance Management 312 • THE STRATEGIC CONTEXT: TRW 312 312 310 313 Defining the Employee's Goals and Performance Standards 313 Who Should Do the Appraising? 314 TECHNIQUES FOR APPRAISING

Power Shifts: The Digital Era And Publishing

3761 words - 16 pages . Anchoring is a cognitive bias that occurs in customers and the resulting behavior can be described as, when given information regarding the value of something, the customer gives this initial value that is given heavier weight than information gained later. Future purchasing decisions and value judgments are based of this initial appraisal. Price sensitivity is heavily impacted by anchoring, if item A is valued at $50 and gives x amount of utility and