BACHELOR OF COMPUTER APPLICATIONS

Guru Gobind Singh Indraprastha University

GP-NUES ACTIVITY

Submitted To Submitted By
Dr. Prof. Sandhya Sharma Priya Sharma
Asst. Professor Priyanshu Vaish
VSIR, VIPS Rachit Sethi
Radhika Khattar
Raghav Budhiraja
BCA-2EB
BUSINESS
MODEL PRESENTED BY
PRIYA SHARMA

PRIYANSHU VAISH

RACHIT SETHI

RADHIKA KHATTAR

RAGHAV BUDHIRAJA
Contents of Presentation
• Introduction
• History
• Services
• Competitors & Market Share
• Revenue Model
• Business Model
• Digital Business Model
• Target Audience
• Strategy Analysis
• Stock Analysis
• Key Cost & Operation Expense
• Netflix Quarterly Profits & Cost Analysis
• Interesting Facts
 INTRODUCT
ION
• Netflix, Inc, is an American content platform and production company headquartered in Los
Gatos, California.

• It was founded on August 29, 1997 by Reed Hastings and Marc Randolph, Company's primary
business is a subscription-based streaming service offering online streaming from a library of
films and televisions series, including those produced in-house

• In April 2021, Netflix reached 208 million active subscribers, It is available worldwide except
mainland China(due to local restrictions), North Korea, Syria.

• US sanctions It was reported in 2020 Netflix's operating income is $1.2 billion.

• Netflix is also a member of Motion Picture Association MPA , producing and distributing
content from countries all over the globe.
 HISTORY

The company has three business segments:

• Domestic streaming
• International streaming
• Domestic DVD
 SERVIC
• Netflix provides a diverse and customizable library of content available for unlimited streaming

ES
for user-convenience.

• Netflix customers are avid content consumers. They value easy and immediate access, as well as
the portability and transferability of the product.

• Netflix has an international audience.

• Streaming is available online, on mobile devices, and game consoles such as the Wii, Xbox, and
PlayStation.

• Netflix retains their customers by continuously growing their library of content, producing
Exclusive Netflix content

• Netflix’s ability to recommend content to watch based on user interests and preferences is a
unique customization feature.
COMPETITOR MARKET
S SHARE
REVENUE
MODEL
BUSINESS
MODEL
 DIGITAL BUSINESS
MODEL
• Netflix works on a classical service business model in the video-
on-demand industry where users of the service and payers are the
same.

• Netflix was the first of its kind who offered entertainment

content using video streaming in exchange for subscription
fee. Netflix is a B2C subscription business and does not carry
any advertising.

• Netflix allow the account holder to register up to four screens

per account.
NETFLIX STRATEGIES ANALYSIS
Netflix broadly uses two main strategies Cost Leadership as their
generic strategy and Differentiation

 Cost leadership is one of three generic business strategies

discussed by Porter Essentially, a firm that follows a cost
leadership strategy attempts to earn higher returns and
competitive advantages through offering products or services at
the lowest prices in the industry

 Differentiation Strategy → The strategy that aims to

distinguish a product or service, from other similar products,
offered by the competitors in the market. ... Differentiation is the
key to successful marketing, competing, and building your
sustainable competitive advantage. They use this in their
operations department
Some other Strategies used
• Netflix Inc produces and launches its own original content specific to their platform.

• With their different and original approach they are able to gather more subscribers but more importantly are able to retain

them

• Market Penetration → They achieved that by expanded business operations and multinational market and providing more

streaming options that their competitors

• Market Development supports Netflix's organizational development, but only as a secondary intensive growth strategy.

• Product Development is another secondary intensive growth strategy that supports Netflix's development and expansion

• Diversification is rarely applied to grow Netflix's operations, arguably because of the high risks involved.
 STOCK
ANALYSIS
 TARGET
• Netflix caters to everyone who has access to
AUDUIENCE
internet.
• Netflix’s products are targeted towards the
lower-middle class and up.
• Netflix offers movie and TV titles that cater to
different racial and ethnic groups.
• Netflix appeals to people are busy to go out
and shop for desirable titles
• Netflix also targets those who are movie buffs
and TV fans
 KEY COST & OPERATING EXPENSES
• Marketing

• Technology and development

• General and administrative

• Cost of Revenue

• Streaming Delivery

• Content
Netflix Quarterly Profits & Cost Analysis
 INTERESTING FACTS ABOUT
• People who use another person’s account to stream content
NETFLIX
could be costing the company $360 million or more in
revenue.
• Netflix binge-watching might correlate with depression.
• Netflix staffers think you decide on a movie in two
minutes.
• Netflix executives used to make house calls.
• With Netflix binging a new phrase originated “Netflix
and Chill” which till date is most popular OTT slangs
Bibliography
• Business model “Canvas”. Retrieved from
https://en.wikipedia.org/wiki/Business_Model_Canva
• •Netflix. Retrieved from https://en.wikipedia.org/wiki/Netflix •Netflix (2015).
• Retrieved from http://ir.netflix.com/index.cfm. •Wikinvest.com.
• Retrieved from http://www.wikinvest.com/stock/Netflix_(NFLX)/Filing/10-
K/2014/10-K/D18086827#sC6B9E5BE634C5CF0F4ED0127B0AB0FF
economics of Netflix.
• Retrieved from https://stephenfollows.com/theeconomics-of-netflix/.
• Lindsay, MM. (2014). Netflix: Target Market. Retrieved from
https://storify.com/mmlindsay/netflix-target-market.