Project report
on NETFLIX
By,
R P Preethi III BBA
EXECUTIVE
SUMMARY
The report is an analysis of an American
based entertainment company called Netflix,
which is involved in streaming online media.
The report broadly looks into the digital
business model and business activities of the
company in the enterprise perspective.
The report describes the company’s business
background and briefly described the
stakeholders of the business. It also summarizes
the services provided by Netflix and the target
group for the company.
It is followed by an overview of the online
streaming industry and the competition faced
by Netflix in this sector.
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The Industry, Company and its products
Industry Company and Products and
Concept Services
Tech & Entertainment, The platform provides its
viewers the ability to Streaming media video
mass media on demand . Film
stream and watch a
variety of TV shows, production film
movies, documentaries distribution television
and much more, through production television
means of using a software distribution
application.
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Market Size Competitive
edges Market share
Netflix market has had Google, Redbox, Netflix's U.S. market
a consistent growth trend Amazon, Disney's, share has taken a hit
over the years. Walmart's Vudu, in the last year — even
Apple's iTunes as it added a company-
It started operations in record 36.58 million
1999 with 101000 Netflix sets itself new accounts globally
Market Research and subscribers to more than
40.28 million streaming
apart with a number
of titles available
in 2020.
Analysis subscribers ending Q3
this year and 7.51 million
Approximately 3
times more titles than
physical DVD mail
subscribers as of June any of its competitors
2013
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The Economics of the business
○ They increased their total number of paying subscribers to nearly 140 million worldwide, up from 110
million in 2017.
○ These new subscribers allowed them to increase their revenues by 35% to $16 billion.
○ Their operating profits doubled to $1.6 billion.
○ They are forecasting an additional 8.9 million new subscribers in the first quarter of 2019, bringing their
total to nearly 150 million paying subscribers worldwide.
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Insert or Drag and Drop your Photo Here
Marketing Plan
Increase the brand awareness and
goodwill especially in new international
markets.
Highlight the competitive price and
variety of content and the social media
integration that Netflix offers
compared to their competition by
including these details in every
message.
Increase number of subscription from
40 million people to 70 million
Improving the Instant streaming
service in various aspects (discussed
under product offering)
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Largest part of staff would
include programmers and
technological assistants
Incredibly skilled customer
service team that could help with
technological and streaming
issues considering this is an
online service
Strong marketing team
Manufacturing and
Two spaces would be necessary
(Office space and server space)
operations plan
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Reed Hastings. CEO, Chairman.
Ted Sarandos. Co-CEO and Chief
Content Officer.
Rachel Whetstone. Chief
Communications Officer.
Maria Ferreras. Global Head of
Business Development.
Jessica Neal. ChiefTalentOfficer.
David Hyman. Chief Legal Officer.
Greg Peters. COO and Chief Product Management Team
Officer.
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Critical Risks, Problems and Assumptions
Analysists have predicted that Netflix revenue is to grow at a much higher rate due to expansion in Europe
and domestic subscriber growth. Profitability trends have improved domestically and under most likelyhood
the international segment will be profitable in the years to come.
Profitability would come as a result of revenue growing at a higher rate than costs, and analysts are
predicting an aproximate of 32.3% annual rise in profitability over the next five years.
Other than the cost to acquire content, Netflix spent around $607 million on marketing, $472 million on
technology and $270 of administrative expenses. Lets have a deep dive into Netflix’s multiple cost heads
Since Netflix opperated in local currencies, a major financial risk is the foreign exchange fluctuation and
that sometimes can result in negative influence once reporting is done and margins are calculated in US $.
Netflix cash from operations continues to be negative due to the investments in “originals”.
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Financial Plan
○ In 2020, Netflix posted positive cash flow for the first time since 2011. The negative cash flows in recent
years were due largely to the company's strategy of spending heavily to finance growth, including the
production of original entertainment.23
○ The company noted in its fourth quarter press release that it believes it is very close to generating
sustainable positive free cash flow (FCF).
○ Based on its current cash balance and undrawn credit facility, Netflix also believes it no longer has a need
to raise external financing for day-to-day operations.4
○ Netflix has also seen significant gains to its net income and revenue in recent years. For the fiscal year (FY)
2020, annual net income was $2.8 billion, up 47.9% year-over-year (YOY).5
○ While the COVID-19 pandemic has triggered disruptions in much of the global economy, pandemic-related
home confinement measures have helped to increase the company's global paid streaming memberships by
21.9% in 2020.6 Annual revenue rose 24.0% to $25.0 billion in 2020, which ended December 31, 2021.
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○ Netflix market cap history and chart
from 2006 to 2020.
○ Market capitalization (or market value)
is the most commonly used method of
measuring the size of a publicly traded
company and is calculated by
multiplying the current stock price by
the number of shares outstanding.
○ Netflix market cap as of April 21, 2021
is $245.56B.
Proposed Company
Offerings
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Thank
You
