SRI SANKARA ARTS AND SCIENCE COLLEGE

(AUTONOMOUS)
DEPARTMENT OF BUSNIESS ADMINISTRATION

A STUDY ON NETFLIX

NAME OF THE STUDENT : SARAVANAN.S

CLASS : MBA II
ROLL NO : 21MBA027
REGISTER NO : 2101212036027
Abstract
The popularity of digital streaming platforms, such as Netflix, is gradually
growing. While digital streaming platforms share similar economic interests as
traditional producing and broadcasting companies, the two differ in operation and
nature of consumption. These platforms constructed new means of consuming
content, offering licensed and original content. This study describes and examines
how product placements, a popular advertising strategy that integrates commercials
in media entertainment content, are applied in an up-to-date digital
environment. A content analysis was conducted of product placements in comedy
and drama shows within Netflix originals and non-Netflix originals shows. The
study results indicate that Netflix original shows include more product placements
than non-Netflix original shows. Moreover, drama shows include more product
placements than comedy shows, and these are more explicit and visual. Finally, it
was found that product placements categories can be predicted by the genre of the
show, but not by the production type.

NETFLIX ORIGINALS
A "Netflix Original" is content that is produced, co-produced, or distributed by
Netflix exclusively on their services. Netflix funds their original shows differently
than other TV networks when they sign a project, providing the money upfront and
immediately ordering two seasons of most series.

Over the years, Netflix's output has ballooned to a level unmatched by any
television networks and streaming services. According to Variety Insight, Netflix
produced a total of 240 new original shows and movies in 2018, then climbed to
371 in 2019, a figure "greater than the number of original series that the entire U.S.
TV industry released in 2005." Netflix's total budget allocated to production
increased annually, reaching $13.6 billion in 2021 and projected to hit $18.9 billion
by 2025, a figure that once again overshadowed any of its competitors.
NETFLIX HISTORY

Marc Randolph, co-founder of Netflix and Reed Hastings, co-founder and the current

first CEO of the company

chairman and CEO

Netflix was founded on August 29, 1997, in Scotts Valley, California when their
founders Marc Randolph and Reed Hastings came up with the idea of starting the
service of offering online movie rentals. The company began its operations of
rental stores with only 30 employees and 925 titles available, which was almost the
entire catalogue of DVDs in print at the time, through the pay-per-rent model with
rates and due dates. Rentals were around $4 plus a $2 postage charge. After
significant growth, Netflix decided to switch to a subscriber-based model.

In 2000, Netflix introduced a personalized movie recommendation system. In this

system, a user-based rating helps to accurately predict choices for Netflix
members. By 2005, the number of Netflix subscribers rose to 4.2 million. On
October 1, 2006, Netflix offered a $1,000,000 prize to the first developer of a
video-recommendation algorithm that could beat its existing algorithm Cinematch,
at predicting customer ratings by more than 10%.

By 2007 the company decided to move away from its original core business model
of DVDs by introducing video on demand via the internet. As a part of the internet
streaming strategy, they decided to stream their content on Xbox 360, Blu-Ray disc
players and TV set-top boxes. The ventures also partnered with these companies to
online streaming their content. With the introduction of the services in Canada in
2010, Netflix also made their services available on the range of Apple products,
Nintendo Wii and other internet-connected devices.
In 2013, Netflix won three Primetime Emmy Awards for its series “House of
Cards. By 2014, Netflix made itself available into 6 countries in Europe and won 7
creative Emmy Awards for “House of Cards” and “Orange Is the New Black”.
With blooming streaming services, Netflix gathered over 50 million members
globally. By 2016, Netflix was accessible worldwide, and the company has
continued to create more original content while pressing to grow its membership.
From this point, Netflix was unstoppable and today it has a worldwide presence in
the video-on-demand industry.

Business Model of Netflix

The platform has advanced to streaming technologies that have elevated and
improved Netflix’s overall business structure and revenue. The platform gives
viewers the ability to stream and watch a variety of TV shows, movies,
documentaries through its software applications. Since Netflix converted to a
streaming platform, it is the world’s seventh-largest Internet company by revenue.

1.Netflix’s Key Partners:

 Netflix has built more than 35+ partners across the world. They have
partnered with different types of genres for subscribers to select from and
enjoy watching.
 Built alliances with Smart TV companies like LG, Sony, Samsung, Xiaomi
and other players in the market.
 Built alliances with Apple, Android and Microsoft platforms for the purpose
of converting the business leads from mail-in-system to streaming.
 Built alliances with telecom networks like Airtel, Reliance Jio and
Vodafone.

2.Netflix’s Value Proposition:

 Netflix aims to provide the best customer experience by deploying valuable
propositions. Here is how the online streaming brand strives to do so:
 With 24*7 streaming service, users can enjoy shows and movies in high-
definition quality from anywhere whether they are at home or are traveling.
 Users get access to thousands of movies and tv shows and Netflix Original
movies or shows.
  New signups can avail a 30-day free trial and have the option of cancelling
your subscriptions anytime.
 Receive algorithmic recommendation for new items to watch.
 At Netflix, users have the flexibility to either turn on notifications and
suggestions or keep them switched off.
 Netflix “user profiles” gives leverage for users to personalize their user
account and preferences. The User profiles allow the “admin-user” to
modify, allow or ever restrict certain users.
 Sharing accounts options is one of the rarest features a movie platform can
provide. Sharing accounts feature on Netflix allows spouses, friends or even
groups to share an account with specific filters and preferences already set.


3.Netflix’s Key Activities

 Maintain and continue to expand its platforms on the website, mobile apps
 Curate, develop and acquire license for Netflix’s original content and
expand its video library.
 Ensure high-quality user recommendation to retain customer base
 Develop and maintain partnerships with studios, content production houses
and movie production houses.
 Operate according to the censorship laws. Netflix always promotes and
operates within the boundaries of censorship.

4.Netflix’s Customer Relationships: 

Netflix has designed customer-friendly platform which offers:

 Self-Setup: Netflix platform was originally designed to ensure that it is

simple and easy to use. Developers of the website ensured to associate
elements and themes that serve, promotes friendliness and provides self-
setup.
 Unbelievable Customer Experience: Customers can solve their queries by
reaching the Netflix team through website portal, emailing enquiries and
directly reaching the representative on call or live chat.
  Social Media Channels: Netflix also engages its audience through social
media platforms such as Facebook, Instagram, LinkedIn. It advertises, offers
deals to gain the high attraction customers and enhance customer base.
 Netflix Gift Cards: Netflix offers its customers special promotional
discounts and other gift cards as a part of their subscription plan.

Netflix’s Revenue Model

Netflix gained major popularity when the platform launched online streaming
services. Let’s have a look at how the platform earns.
 Subscription-Based Business Model: Netflix offers monthly subscriptions
fees with three different price options like basic, standard and premium plan.
Today, Netflix has over 125 million paid members from over 190 countries
and generates $15 billion annually.
 Important partnerships: Built its alliances with a wide range of movie
producers, filmmakers, writers, and animators to receive content and legally
broadcast the contents required aligning licenses.
 Internet Service Provider: One of the most influential tactics implemented
was its ability to build alliances with a wide range of movie producers,
filmmakers, writers, and animators to receive content and legally broadcast
the contents required aligning licenses.
Netflix was able to establish a well-reputed image worldwide and increased its
customer base day-by-day. When it comes to giving a competition, the brand has
devised various digital marketing strategies and have gained wide popularity on
digital media platforms. With the help of best digital marketing services, they have
kindled the excitement and craze in the people to travel and host.
.

PAST 5 YEARS NETFLIX INCOME STATEMENT

NETFLIX INCOMES AND RANKS

Digital Marketing Model of Netflix

In less than 4 years, Netflix has gathered a major share of the Indian market. Today
a majority of households in India subscribe to Netflix, and that number is expected
to rise this year and further the years to come. The product is designed so well, that
you remain engrossed in the content they deliver. They adopted top digital
marketing strategies. Consult the best brand activation agencies. Further, let’s
talk about a few of the digital marketing principles that Netflix has successfully
implemented to gather customers.

1.Personalised Content Marketing: People love using Netflix because they get a

broad range of things to watch. Netflix’s library of TV shows and movies from all
over the world is there for consumers to choose from at any time.
The reason that Netflix won the personalisation game is that its advanced
algorithm continues to rearrange the programmes over time on the basis of your
viewing history. Hire some of the best performance marketing agencies for
personalised content.

2.Website Development: Netflix has designed its website with a user-friendly

interface which allows customers to rate TV shows and movies, which then goes
through Netflix’s algorithm to recommend more content they might enjoy. With
the onsite optimization for the website, they have optimized each and every page
for enhanced customer experience.
To easily get in the minds of customers, they have optimized their website for
content by title, by an actor’s name, or even by a director’s name. By leveraging
the best website development services, they added a host of personalisation
features to their website with clean looks no matter which platform you are using.

3.Email Marketing: Netflix tapped on email marketing techniques as a part of

their digital marketing strategy and as a key component of customer onboarding
and nurturing. New Netflix customers receive a series of emails that make content
recommendations and encourage new users to explore the platform. Netflix
marketers invest hours in building creative email marketing campaigns designed to
engage and delight recipients. With the help of best email marketing services,
they continue to enhance the experience of the customers.

4.Search Engine Optimization: Netflix makes use of search engine optimization

services for the sake of improving organic research and establishing their brand
presence. The brand aimed at best search engine optimization services to drive
the traffic organically and adopted both on-page and off-page SEO strategies. They
optimized their content with potential keywords that show up high in search
results. They also tapped the strategy of International SEO to gain organic leads
from the worldwide stage.
5.Social Media Optimization: Today, social media platforms have become an
integral part of the digital marketing strategy. If you want to connect with your
audience in real-time, then it is the best platform to establish your brand image. As
social media plays a vital role in the lives of the people, Netflix decided to
leverage best social media optimization services that made them earn billions.
They made use of following platforms:

Facebook
Through creative social media optimization strategies Netflix has garnered more
than 61 million Facebook followers. In just one year, the brand added 11 million
followers to its account. Netflix posts nearly 90% videos and rest images. Videos
featured on Netflix’s
Facebook page are typically clips from interviews with the actors from the
upcoming movies, clips from the upcoming movies and TV shows, offering
audiences a sneak peek into what’s in store for them. Besides videos, the OTT
platforms share images, GIFs, funny memes, simple text posts featuring questions
about current movies and TV shows.

Instagram

Netflix carries 30.9 million followers. The majority of Netflix’s posts on Instagram
are images, post scenes from TV shows featuring engaging captions to get a
conversation going, and behind the scenes clips and interviews with actors. A
recent video featured a behind-the-scenes bloopers video from the set of Stranger
Things, which garnered 2.1 million views and 4675 comments. Netflix uses a
simple approach to posting, with most posts not featuring any hashtags at all.
Twitter

Netflix carries 19.7 million followers on Twitter and has tweeted over 30,000
times. Netflix is renowned for its witty replies and comebacks on Twitter, and the
brand tweets an average of 14 times a day. This shows just how important
engagement is for the brand and how much it values brand awareness.
These are the digital marketing techniques which the famous OTT platform
adoptes time to time to the subscribers’ engagement and retention. Hence it has
yielded high returns for their business.
Campaigns of Netflix
1.Netflix: The Spoiler Billboard: Netflix’s new campaign uses spoilers of its
most popular shows, including Stranger Things, Money Heist and Narcos, to
promote social distancing amid the COVID-19 crisis, and while the effort is getting
a lot of buzz, it’s a fake.

2.FU2016: To launch season four of the political drama House of Cards, Netflix
worked with BBH New York and built a fake presidential campaign around the
show’s lead character Frank Underwood. The campaign became the top trending
topic on Facebook and Twitter during the debate, and it won a Grand Prix in the
Integrated category at Cannes in 2016
.
3.The Censor’s Cut: The streaming company wanted to advertise Narcos Mexico
in Thailand. Netflix worked with JWT Bangkok and cut around the offending
images within each scene, leaving a clear enough outline that anyone could still
identify what had been removed. The campaign achieved the opposite effect of
what censorship is supposed to do by reaching 34 million people.

COMPETITIVE ANALYSIS ON NETFLIX INDIA

In india recently more online websites, apps ( Amazon prime video, zee5, Disney
+ Hotstar, MX player., etc) are competitors on Netflix. Even though Netflix still
had upperhand because of their performance .
COMPETITIVE ANALYSIS ON NETFLIX WORLD
WIDE

NETFLIX IN WORLD WIDE USERS

NETFLIX SUBSCRIERS
In 2012 to 2022 over a decade Netflix subscribers and the company growth
increased in 2012 the subscribers around the world is 25.7 million Now 221.64
million . But also the fact Netflix lost 0.7million subscribers won’t change also the
growth is unbelievable.

Conclusion

Amazon, Disney have many options other than tv shows and movies to earn but
Netflix have only their DVD and OTT platform to earn.
Netflix is a rare example of a company doing everything right. From their branding
and content right down to their business model and product, the company has
always excelled at making smart, strategic decisions. With their large market share
and focus on the numbers, Netflix has managed to develop a deep understanding of
their audience that very few others have. This knowledge, paired with a strong,
affordable product, there’s no limit to what this brand can do in the future.