HOW AN 19-YEAR-OLD COMPANY CREATED A NEW MARKET

THROUGH INTERNET
 INTRODUCTION
Netflix was first founded in August of
1997 by two serial entrepreneurs, Marc
Randolph and Reed Hastings. The
company began out in Scotts Valley,
California, and has grown to become
one of the world's leading internet
entertainment platforms. When it first
opened, Netflix was purely a movie
rental service.
 Marc Randolph and Reed Hasting were in a big dilemma of what kind of
GROWTH business they wanted to start. Randolph just had a focus to start a company
that sells something online.
STORY The incident occurred with Hasting when he ended up with paying $ 40 giving
back the rental movie after the due date. This gave a birth to Netflix as a DVD
rental company in the year 1997 based in Scotts Valley, California.This was the
first step of the success story of Netflix

Having a team of 30 people and 925 movies to give it on rent, Netflix launched
the webpage in the year 1998.Following year was a change of payment model to
the ‘Monthly Subscription’ from ‘Pay per rental’ model.

With DVD’s dragging the attention of the audience as one of the ruling means of
entertainment, Netflix realized the significance of technology trends sensing a
switch in the consumer demands. It was of no amaze the widespread use of
internet tear apart the TV networks with the launch of online media streaming
service by Netflix in the year 2006

Recurrently and repeatedly, Netflix touched the vertex of the content marketing
and social media with a drastic big hit in every launch it made. Penetrating into
the digital transformation, it initiated to produce and upload its own video
series, shows, and movies all summed up to the success story of Netflix.
 MARKETING STRATEGY
Free trial for a month has been one of their promotional strategy to lure or
rather acquaint customers by making them try the service on a trial basis.

Netflix collaborates with a great number of companies and applications

such as banks, Snapchat, and Instagram with multi-channel campaigns. For
example, if you have an account on a bank that is a business partner of
Netflix, you can get a 50% discount for Netflix. They create photo effects on
Snapchat and Instagram for the users on those applications. They also use
email marketing to promote their content.
COMPETITORS
1. Amazon Prime
2. Youtube
3. Hotstar
4. Cinemas
5. Sony liv
6. Apple Tv+
SWOT ANALYSIS
OF
STRENGTHS & WEAKNESSES
1. Exponential Growth 1. Limited Copyrights

2. Brand Reputation 2. Rigid Pricing

3. Support Shortages
3. Originality

4. Adaptability

5. Global Customer Base

OPPORTUNITIES & THREATS
1. Low – Price Mobile 1. Competitive Pressure
Streaming Option 2. Account Hacking
2. Exploit Ad-Based 3. Piracy
Model

3. Expand Global
Customer Base

4. Refresh Content
library