NETFLIX

In the last 30 years the form / way of seeing the movies has changed considerably,
like human beings, every day, we have a new way change and need; for example,
when Antonio Meucci in 18711, I identify the need of the human being to
communicate distantly, I develop a model that today we know as "telephone", but
with the time, the need of the human being to communicate I evolve to other
functions, which content opens the so called Smartphone, with diverse functions of
communication, so much this way, that nowadays not only is used to communicate,
if not as tool of study, work and entertainment. The key for the success, is to
identify these changeable needs of the consumer, for yes, with the analysis and
planeación of a service or product that replaces those needs surgentes with the
passage of time.

Netflix, is a clear example of it; Hastings, as whom towards part of the consumers
of audio-visual material (movies in cassete) I identify his need of flexibility and it
turned in a business, which 2017 closed with 558,93 million dollars 2 enviable
enough number, but, how it has come to this do I excite? The model of business
was easy to deal for the clients. Which were subscribing monthly, choosing
packages that adjust to his needs (number of movies) the most popular
membership, it allowed to the clients to rent up to 3 DVDs simultaneously, which
when it was available, they were sent to the mail if the threat of charges for
backward payments, beside seeing the comfort of seeing movies in his own hourly.
One of the innovations that had this company in comparison to his competition,
was his motive innovator of recognition in this then, which was throwing his
information or audio-visual material that attracts them, taking information of the
individual tastes for this way, to do a filter, which would be a great attraction for the
consumers.
1
elephone. It paginates Wikipedia. [On line] In: www.wikipedia.co [Consulted on August 10, 2018]
Available in Internet: https: // es.wikipedia.org/wiki/Tel%C3%A9fono
2
Annual evolution of Netflix's net profit worldwide from 2002 until 2017 (in million dollars) [On line]
In: Statista [Consulted on August 10, 2018] Available in Internet: https: //
es.statista.com/estadisticas/600768/resultado-neto-de-netflix/
To analyze thoroughly which was Netflix's strategy we must speak of them 4p;
product, price, square and promotion.

Product: In the previous paragraph, I identify that type of service offers Netflix
from 1998, which consisted of a beginning of the rent of DVD by post, where they
were handling more flexible policies with the client, rates and packages that were
adjusting according to the client. Briefly, Netflix, I identify the need cambiante/they
evolve you of the market of rent of movies, designing a strategy of business that
was replacing these new needs.

Price: Netflix, received a flat subscription and allowed to the clients to rent
between one and five DVDs simultaneously, without limit of how many might be
rented in one month and without date of maturity. The schemes of Netflix's prices
gave to the clients illusion of a major flexibility, but in essence, the charges by
backward payments were included in the price of subscription. In addition, to
operate in a space on line, it allowed Netflix, to reduce costs of operation.

Plaza: The business model of Netflix sent the movies directly from his central store
to the houses of the clients, that is to say, his channel of distribution was indirect
shortly, in this respect, the cost of supply the individual shops (since in the
traditional model of rent of videoes) were replaced by the cost of the sending by
post (intermediary only one between manufacturer and consumer) movies directly
to the consumers.

Promotion: The integration of adjustable packages to the needs of the client,

(Great portfolio) they were a great success, since a person could rent 3 movies
several movies simultaneously, without dates of maturities, being like that, a great
attraction, not only it had the option of several movies simultaneously, but, also the
pleasure of seeing them in the schedule that he wishes without problems of dates
or charges extras.
Netflix also took advantage of his alliances with the big studies to throw movies
before the rent of videoes industry, reducing the space of traditional time between
the release date of the movie in the cinemas and it dates in that it was available for
rent.

Experience of the client and loyalty The daily challenge of a company, beside new
clients attract, is like to create agreeable experiences to the client actual/ancient for
this way, to inculcate a sense of loyalty towards the brand.

There are three types of clients in Netflix. To a group he likes the

convenience of the freedom to domicile, the movie fans want access to
the selection more wide of, let's say, French New Movies of Wave or
Bollywood, and the hunters of bargains want to see 10 or more movies
for 18 dollars a month. We need to support contentments to all the
public ones because the more someone uses Netflix, it is the more
probable than stay with us.
Reed Hastings

It is here, where the software of recommendation raised that I develop netflix, so

called Cinema match, asked clients him, to spend an exercise of qualification,
preparing to the system to understand his preference; more movies a client
classifies, more precise they will be Netflix's recommendations. Nowadays this
system is still present, in 2017, when it should realize my monthly subscription,
with the attraction of the first free month, on having initiated my session as user,
the program did a series of questions to me beside choosing movies in that I would
be interested in a present catalogue, it is like that, since I could find movies that at
some time it had seen in the tv, but Netflix did not remind his name, with base to
the kind and my record of seen movies, it might say that there was almost perfect
the selection of recommendations that had the program.
· Competition on the market of the digital distribution

With the digital evolution in 2009, the industry of rent of videoes by post was seen
in squeezes, The current subscribers of Netflix had right to an almost unlimited
visualization of Contained on line with quality of DVD across a function known
since " Look at the instant ". From May, 2009, more than 12,000 movies and
television programs were available across this service. 14 in November, 2008
Netflix he signed an agreement with Microsoft that allows to the subscribers to
transmit to order movies across his consoles of video games Xbox 360. And in
January, 2009, Netflix announced one to treat with the manufacturers of electronics
Vizio and LG to allow the instantaneous transmission of Netflix's movies televisions
of subscribers' high definition.

Nowadays, Netflix, continues with his strategies of marketing, his channel of

distribution more used in the world is a route online, for which, it is necessary to be
in constant communication with the young persons, who are the principal
consumers of material visual audio3, this channel or way that has taken so much
force throughout the time since it it is the social Internet, the networks etc., They
are one of the constant challenges for them bought logos, not only in identifying a
need and establishing like to replace her, the big challenges are in the distribution
and promotion, the distribution, as way, channel which is in use as way of transport
up to the final consumer, and nowadays, the purchases of material online and
others it is in growth, since mating to what I call " evolution of the needs ". The
promotion also is a challenge, the current consumer resists to her publish that they
do the companies, many people feel asechados for them advertisement and
others, the challenge is it like to come to them and to break this new barrier that
many consumers have formed?.

3
he economist. Netflix is the platform most used between the young persons, according to a study
of the Complutensian one that announces how it is the profile of the user of the video à la carte in
Spain. [On line] En:www.eleconomista.es [Consulted on August 10, 2018] Available in Internet: http:
// www.eleconomista.es/campus/noticias/8481029/07/17/Netflix-es-la-plataforma-mas-utilizada-
entre-los-jovenes-segun-un-estudio-de-la-Complutense-que-da-a-conocer-como-es-el-perfil-del-
usuario-del-video-a-la-carta-en-Espana.html