TABLE OF CONTENTS
Company Overview (3)
Key Facts (3)
4Netflix, Inc.
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T ABLE OF CONTENTS
COMPANY OVERVIEW
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Netflix, Inc. (Netflix or 'the company') is an online subscription rvice streaming television (TV)shows and movies.The company's subscribers can watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices, as well as receive digital versatile discs (DVDs) delivered to their homes.The company primarily operates in the US. It is headquartered in Los Gatos, California and employed 2,327 people as of December 31, 2013, of whom 305 were part-time employees.
The company recorded revenues of $4,374.6 million in the financial year ended December 2013(FY2013), an increa of 21.2% over FY2012.The operating profit of the company was $228.3million in FY2013, compared to the operating profit of $50 million in FY2012.The net profit was $112.4 million in FY2013, compared to the net profit of $17.2 million in FY2012.KEY FACTS
Netflix, Inc.
Head Office 100 Winchester Circle
Los Gatos
California 95032
中间数USA
词有哪些1 408 540 3700Phone
Fax
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Web Address 4,374.6
Revenue / turnover (USD Mn)
December Financial Year End
2,327
Employees NFLX
NASDAQ Global Select Market T icker
Netflix, Inc.
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Company Overview
SWOT ANAL YSIS
Netflix is an online subscription rvice streaming TV shows and movies.The company's subscribers can watch unlimited TV shows and movies streamed over the internet to their TVs, computers and m
obile devices, as well as have DVDs delivered to their homes.The company's business model gives it a competitive advantage as against the traditional outlets. However, increasing cost of delivering DVDs through postage could have an adver effect on its margins.
拍卖合同
Weakness Strengths
Litigations impact brand image and financial position Strong business model provides a superior
value proposition
Effective marketing and improving customer
experience helps in increasing the number
of subscriptions
Improving financial performance
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Threats Opportunities
Cost of delivering DVDs on the ri Growing demand for online video streaming
has already incread viewership
Price increas affect subscriber ba Growth in online spending will strengthen
Netflix's core market
Increasing internet frauds caution customers and dampen growth rates
Strategic partnerships expand subscriber
ba Strengths
Strong business model provides a superior value proposition
Netflix is the world's largest subscription rvice nding DVDs by mail and streaming movies and TV episodes over the internet with over 44 million subscribers.The company operates an
internet-bad subscription model which has done away with many disadvantages experienced in traditional outlets.The number of customers opting for Netflix over the traditional model is on the ri as it offers greater convenience. Netflix also enjoys additional competitive advantages.The company
provides more than 100,000 DVD titles which is not possible for outlets as they cannot stock such a large number of DVDs. Outlets devote larger space for newer releas and alternatively Netflix can offer old and new titles simultaneously without incurring additional costs.Technology enables customers to sort through the titles easily which is almost impossible to do so in the traditional model.With Netflix, customers pay a fixed monthly subscription fee, eliminating due dates, late payment fees, shipping fees and pay-per-view fees. In addition, the company's merchandising Netflix, Inc.
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practices coupled with its recommendation rvices provide tools for subscribers to lect titles that appeal to individual preferences.
Netflix's instant streaming rvice over the internet is witnessing escalating growth.There are various devices worldwide that can stream content from Netflix instantly.The include the Microsoft Xbox 360, Sony PS3 consoles; Blu-ray disc players, internet-connected TVs, home theater systems, digital video recorders and internet video players; Apple iPhone, iPad and iPod touch, Android devices, as well as Apple TV and Google TV. Devices such as the iPhone, iPad and iPod touch enable viewers to watch movies and TV shows while on the move. Netflix's business model provides customers with the most convenient way to view DVDs as they are delivered to their address and the subscribers can return them through pre-paid postage envelopes.The business model that Netflix operates gives it a competitive advantage.
Effective marketing and improving customer experience helps in increasing the number of subscriptions
Netflix promotes rvices through various marketing programs which include online promotions (including social media), TV and radio advertising, and other promotions with third parties.The company also provides a free-trial period as a promotional offer to attract new customers. Free-trial membership period lasts for a month, and is offered only to new and certain former members. Netflix's consumer electronics partners, which are typically between one and three years, also help g
enerate new subscribers. In addition, Netflix continues to improve its customer experience by expanding its streaming content, improving ur interfaces, as well as expanding its streaming rvice to more Internet-connected devices.The efforts enable the company to drive additional subscriber growth. By the end of 2013, the total number of paid subscribers surpasd 30 million in the US, according to industry sources. Subscriber growth leads to word-of-mouth promotion for Netflix's rvices, which, in turn, leads to more new subscribers.The increa in total number of subscribers, as well as net subscriber additions leads to incread revenues for the company.
Improving financial performance
The company's financial performance has improved in the recent times. Its revenues incread by 21.2% in FY2013 over FY2012, driven by strong growth in international and domestic streaming memberships.The company’s domestic streaming gment recorded revenues of $2,751.4 million in FY2013, an increa of 25.9% over FY2012.The increa in this gment was due to the 26% growth in the average number of paid memberships.The international streaming gment recorded revenues of $712.4 million in FY2013, compared to the revenues of $287.5 million in FY2012.The increa in this gment was attributable to the 134% growth in the average number of paid international memberships. Netflix also witnesd significant improvement in its profitability.The oper
ating profit of the company was $228.3 million in FY2013, compared to the operating profit of $50 million in FY2012 and the net profit was $112.4 million in FY2013, compared to the net profit of $17.2 million in FY2012.The company's strong financial position will positively impact investor confidence and also help the company in expansion plans.
Weakness
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