Business Model Canvas for Netflix Assignment 2022

Running head: BUSINESS MODEL CANVAS FOR NETFLIX
BUSINESS MODEL CANVAS FOR NETFLIX
Name of the student
Name of the University
Author note

1BUSINESS MODEL CANVAS FOR NETFLIX
Introduction
In the age of rapid globalization, business organizations are required to persistently
strategize effective means by which they can remain competitive in the market. There are
various means by the business organizations can attempt to increase their brand presence and
share in the market. Innovation is one such strategy that is adopted by the business
organizations in order to develop products and enhance their production processes so as to
improve resource and cost efficiency (Souto 2015). In this regard, it may be mentioned that
the process of innovation pertains to the creation of effective and efficient business processes
and ideas. Innovation strategies go a long way to aid the organization in their growth and
development thereby leveraging their position in the market. The incorporation of innovation
within the business model of organizations enables them to tackle challenges easily and
increase the productivity in an efficient manner (Prajogo 2016). Netflix Inc. is an American
multinational organization specialized in the production and provision of media services. The
company has its headquarters in Los Gatos, in California and was founded in the year 1997.
The company conducts its operations in over 190 countries providing media content and
services in a wide variety of national and local languages (Netflix.com 2020). Over the years
of their operations Netflix has engaged in disruptive innovation so as to develop the scope of
the products and services, meeting the changing needs of the customers. The company has
therefore been chosen for evaluation in this essay because of the innovation strategies that
have been adopted by the organization in an efficient manner, thereby propelling their
constant growth in the media and entertainment industry (Gomez-Uribe and Hunt 2015). The
essay will further focus on the description of the business model canvas for the company
Netflix Inc. highlighting the aspects of innovation used.

2BUSINESS MODEL CANVAS FOR NETFLIX
Business Model Canvas
Key Partners
1.Content
owners
2.Internet
service
providers
3.Amazon web
services
4.Film-makers,
directors,
writers and jury
5.Theatres and
cinema
6.Film festivals
and prizes
7.Investors
(Rayna and
Striukova 2016)
8.Regulators
Key activities
1.Research and
technology
development
2.Acquisition
and licensing of
content
3.Creation of
content
4.Marketing
5.Analytics
6.Influencing
Value
proposition
1.On-demand
consumption
2.Simple pricing
structure
3.Content
library in
various
languages and
genres
(Netflix.com
2020)
4.Premium
services
5.Personalizatio
n options
6.Localization
through
translations and
subtitles
Customer
relationships
1.High quality
customer services
through website
and mobile
application
2.Social media
reach
3.Recommendati
on system based
on algorithms
4.User support
Customer
segments
1.Individuals
belonging from
the age groups
of 10 to 75,
especially
teenagers and
young adults
2.Low to middle
income groups
3.Individuals
living in areas
with proper
internet
connection and
service
provision by the
company
4.Individuals
who prefer
watching
movies and
other media
Key resources
1.Global brand
image and
identity
2.Content
library and
intellectual
property
3.Algorithms
4.Website and
Channels
1.Website
accessible
through laptops,
desktops, tablets
and mobile
phones
2.Mobile
application
3.Social media

3BUSINESS MODEL CANVAS FOR NETFLIX
application
5.Human
resources
6.Financial
resources
7.Technological
resources
8.Studios
9.Data
connectivity of
the company
with the audience
(Netflix.com
2020)
4.Film festivals
and media outlets
content at home
5.Individuals
who prefer
watching a wide
array of media
content in
different
languages
6.Customers
who prefer
innovative and
new ideas of
media content
Individuals who
are movie and
media
enthusiasts
Cost Structure
1.Marketing
2.Content development
3.Technological development
4.Customer services
5.Delivery costs for streaming
6.Taxes
7.Payment processing fees
Revenue Streams
1.Subscription fees from audience
2.Licensing revenues from company owned
content
3.Financial rewards from film festivals and
other means of distinction