Netflix CUEGIS

Innovation

Radical innovation

Incremental innovation

"Skip Intro" button/ "continue watching"

Downloading movies

Netflix originals

Replacing blockbusters

Multiple users/family package

CHANGE

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STRATEGY

Globalisation

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Series releasing with all episodes at once.

Creating 'Netflix Original' content in order to eliminate the need to constantly pay for the rights to air 3rd party tv shows and movies

• Netflix started out as a renting service for DVDs. It started out as a website similar to ebay only that the DVDs would be returned after use.

• Through globalisation and the legal changes about online streaming, Netflix was able to offer their service entirely online

• Netflix is also available in 190 countries while they were only available in the US at the beginning

DVD by mail (in early days)

Brining a completly new way of delivering TV shows to the entertainment industry

Ethics

Key Business Functions

Marketing

Finance

Operations

H.R

Culture

Ethics

Stakeholder Impact

Netflix started out as a small startup in Scotts Valley, California, launched a website called Netflix.com. Instead of physically going to the video store, you could browse the virtual aisles on Netflix, rent a movie for a few bucks apiece plus shipping through its e-commerce platform, and, within two to three business days, a red envelope with a DVD would arrive in your mailbox. After seven days, return it via the mail in the same packaging.

Subscribers

An app that allows to watch multiple movies and series instead of buying movies or series in iTunes

More convenient, low price for multiple movies and

Rapid increase once it created it’s website

New competitors such as: Hulu, Amazon Prime, HBO

Creators of shows/movies

Shareholders

Product development: Create own series, allow downloads

Market development: Different prices for different regions

The 4 Ps, Place: More convenient for customers

Employees

Government

Actors

Child protection filters

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multiple complaints and lawsuits which were solved

Appealing to different cultures/agendas e.g. women empowerment or addressing other political issues.

Competitors

Private limited company

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disney is about to enter the market

Negative Impact, Plan to crack down on account sharing. Netflix's Policy states that an account is intended to be shared between household members. Through tracking of IP addresses and other methods, they want to prohibit the sharing of one account between multiple people, not living in the same household. This is a negative impact as it limits and changes the usage of Netflix towards subscribers and presents an opportunity towards competitors

want the company to suceed

Job opportunities

if netflix movies are sucessful, they can gain fame and might get a good contract at another movie production comopany

Different prices for different regions due to LEDC, MEDC and NIC and currency value

Content can be controversial and is easily accessible for children

Job opportunities

might not want certain movies or series to go online

Rating shows and movies

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substriptions

stocks

merchandice

product placement/ advertising

Streaming

Above the line promotion in the form of posters

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Algorithms, viewer specific recommendations

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Notifications/emails (below the line promotion)

Questions:

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Discuss the impact of marketing due to the change and innovation with a business of your choice.

Discuss the impact of innovation and change on marketing strategies

Key factors of the CUEGIS

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Knowledge