SDM & Covid-19 Impact

History

 Founded in 1997
 By Reed Hastings and Marc Randolph, in Scotts Valley, California, 
 Netflix’s original model was a pay-per-rent service for movies, which were
mailed and delivered to your doorstep. 
 USP- They didn’t charge any late fees.
 Launch of subscription model in 2000
 Launch of ‘Watch Now’ in 2007
 Leading service provider of on-demand movie, documentary and TV show
streaming in the world.
Key Sales Strategies

 Add more recent movies

 Accommodating different internet speeds
 Offer Personalized Content to Keep People Hooked
 Make Interactive Products and Experiences to Generate a Buzz
 Continue 1 month of free trail and communicate in all advertisements
 Focusing on digital marketing
 Sponsor events and film festivals
 Tie-ups with payment networks, telecom providers, D2H services, smart TVs
etc.
Distribution

 Online streaming distribution

 Watch Instantly as well as download and watch later service
 Streaming Media Players, Gaming Consoles, Smart TVs, Set-top Boxes, Blue-
ray Players, Smartphones and Tablets, PCs and Laptops
Covid-19 Impact

 Netflix pointed toward a strong dollar, a temporary surge in subscribers and a pause in
production as the three primary effects the Covid-19 pandemic is having on its financial
performance. Netflix took a huge hit in the wake of the coronavirus pandemic but recovered
faster than most other media companies
 As per the study, Amazon Prime witnessed 67% growth in subscription followed by Netflix
with 65% rise in subscriptions.
 Global Scenario:
 1. 85% of US streaming subscribers subscribe to Netflix.
2. 5 million UK households subscribe to Netflix.
3. Total Netflix 2019 revenue is $20.2 billion, Recent Netflix market cap is $166 billion
(April- 2020)
 Amazon has overtaken Netflix to turn into the quickest developing video-on-request
platform.
 Reduced the content quality from HD to SD to curb down cellular network charges.
Performance Analysis

 The 2020 Coronavirus pandemic caused an unprecedented amount of Netflix streaming.

 Netflix users spent a combined 140 million hours per day watching content 
 41% of Netflix users are watching without paying thanks to password and account sharing.
 The streaming service pulled in 31 primetime Emmy nominations for its original shows.
 Its popularity caused major ISPs to throttle Netflix streaming.
 Netflix houses massive amounts of server space to feed our streaming habits.
Thank You!