Analysis of Netflix Business

Running head: ANALYSIS OF NETFLIX BUSINESS
ANALYSIS OF NETFLIX BUSINESS
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1ANALYSIS OF NETFLIX BUSINESS
Executive Summary:
There are different online sites such as Facebook, YouTube where users can watch
live videos, movies and watch movies and they can use these sites for social networking, for
interacting with new users. Netflix is one such expanding online site through which the users
can stream live videos and share their subscription with their friends and family to make
optimum use of the money they spend for purchasing a subscription.
It is an ever-increasing business sector across the world and Netflix has tremendously
expanded its business in different parts of the world. The following report will highlight the
different aspect of the Netflix industry and the different business objectives and operations
strategies that the organization has implemented. By the end of the report, the reader will be
able to have a clear understanding of the different working principles that are used in the
working of Netflix.

2ANALYSIS OF NETFLIX BUSINESS
Table of Contents
Introduction:...............................................................................................................................3
Background of the business:......................................................................................................3
Target audience:.....................................................................................................................4
Netflix competitive advantage and success factors:...............................................................5
Digital disruption within Netflix:...............................................................................................5
Present disruption analysis of Netflix:...................................................................................5
Future disruption analysis and consequences:.......................................................................6
Challenges and opportunities associated to Netflix market disruption:.................................7
Challenges:.........................................................................................................................7
Opportunities and recommendations for Netflix:..................................................................8
Different implications of Netflix digital disruption:..................................................................8
Legal implications:.................................................................................................................8
Social implications:................................................................................................................9
Ethical implications:...............................................................................................................9
Cultural implications:.............................................................................................................9
Security implications:...........................................................................................................10
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11

3ANALYSIS OF NETFLIX BUSINESS
Introduction:
In today’s world, there are different technologies as well as social media sites, which
are available in the internet for the users to enjoy different kinds of services. One such
popular site is Netflix through which users can watch live television shows, movies, original
series of television series etc. Netflix is tremendously expanding its business. More and more
users purchasing subscriptions of Netflix so that they can watch movies anywhere and
anytime even on interconnected screens.
The recent statistics show that there are about 104 million Netflix members in more
than 190 countries all across the world. They enjoy around 125 million playing hours of
different TV shows. It is one of the biggest market players in the present entertainment
industry all across the world. The following report will highlight the different aspects of the
working of the business of Netflix. By the end of this report, the reader will be able to
understand the different aspects of the business such as the impacts of emerging technologies
on the Netflix business, the different implications of these technologies such as social, ethical
and cultural implications etc.
Background of the business:
Marc Randolph and Reed Hastings first created Netflix in the year 1997 in the Scotts
valley in California. Both of them were former employees of a company called Pure
Software. Micro Warehouse, which was a company for computerized mail order, was co-
founded by Randolph. Later he was also appointed as the marketing at an organization called
Borland international. Hastings founded Pure Software was found by Hastings, which he
recently sold for an amount of $700 million, and in turn, he invested an amount of $2.5
million in a startup called Netflix. Hastings came up with the idea of Netflix when he had to
pay an fine of 40$ late fine for not being able to return a movie on time, that he had rented. A