NETFLIX: INTERNATIONAL EXPANSION – CASE STUDY

Presentation By
2023BLP031 Mitesh Borkar

2023BLP067 Shyamsundar

2023HRLP001 Aditya Bhattacharyya

2023HRLP013 Senjuti Bhattacharjee

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What are the key challenges faced by Netflix in the US and international markets?

Requirement
of Area No Ad
specific revenue
content

New
Censorship entrants and
competitors

Government Availability
sanctions of service
and only in 20
Regulations Languages

Significant
Poor
cost for
network
licensing
Quality
deals

Lack of
internet Increased
access long term
among debt
countries

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How can Netflix overcome/tackle the above challenges?

Exclusive licensing agreement and partnership for original

content.

Aggressive international expansion strategy

Distribution rights and secured partnership with Hollywood

producers and studios

Region and Language specific content

Achieving Regulatory Compliance

Price adjustments and acquiring competitors

Focusing towards streaming methods without active

internet

Tie ups with internet providers

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Define Netflix’s competitive advantage. Why is Netflix so successful?
• On April 14, 1998 launched pay per rental DVD mailing service, charging
Subscription $0.5 per rental. In 1999, introduced subscription based service.
based service
Paid
significant Internet • In 2007, introduced internet streaming and Video on Demand by accurate
premiums on Streaming and forecasting about DVD rentals.
global VOD
licensing deals
• In 2010, Blockbuster faced declining market share and $900 million debt
since they were not adapting to the market trends.

• Successful incorporation and utilization of internet resulted in overtaking

Exclusive
content and Blockbuster in the home entertainment industry.
Adaptability
Local
Programs
• Subscribers can enjoy ad free content in all subscription packs.

• Pursued exclusive licensing agreement and partnerships to develop original

content which helped them decrease their reliance on content providers.

International Successful • Netflix providing services in 190 countries.

Expansion utilization of
Strategy Internet • In the fall of 2015, Netflix partnered with Yoshimoto kogyo to produce
exclusive local programs for Japanese market.
Exclusive
licensing • Netflix paid significant premiums on global licensing. In third quarter of 2015,
No
agreements
Advertisements they reported a loss of $68 million, but its only a short term loss
and
partnerships
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Do a SWOT analysis of Netflix and provide strategic suggestions based
on the analysis?

Strengths Weakness Opportunities Threats

• Original and
Exclusive content. • Growing • Strategic • Government
• Customer-Centricric Operational Cost. Partnership. Restrictions /
Service. • Limited Copyrights. • Expanding Regulations.
• Brand Reputation/ • Increasing debt. Customer base. • Competitive
Brand Value. • No Revenue from • Growth in portable Pressure.
• Advertisement-free Advertisement. media. • Piracy.
content. • Limited language • Increasing use of • Local television
• Global Customer content electronic devices. Operator.
base.

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