Netflix Business Model: A Project Management Perspective

Running head: PROJECT MANAGEMENT
Project Management: Netflix business model
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Table of Contents
1. Introduction..................................................................................................................................3
2. Business Model: Netflix..............................................................................................................3
2.1 Building blocks......................................................................................................................3
2.1.1 Customer segmentation..........................................................................................................4
2.1.2 Brand Statement..............................................................................................................4
2.1.3 Value positioning............................................................................................................5
2.1.4 Key activities..................................................................................................................5
2.1.5Channels..........................................................................................................................5
2.1.6 Revenue stream...............................................................................................................6
2.1.7 Cost structure..................................................................................................................6
2.1.8 Key resources..................................................................................................................6
2.1.9 Consumer relationship....................................................................................................6
3. Interrelationship...........................................................................................................................7
4. Critical success factor..................................................................................................................7
5. Downside risk..............................................................................................................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................9
Appendix 1.....................................................................................................................................10
Appendix 2.....................................................................................................................................11
Bibliography..................................................................................................................................12

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1. Introduction
On-demand film services and streaming services have all successfully managed for
obtaining enough rate of popularity these years mainly for movie buffs. Netflix is the biggest TV
streaming and movie services in the recent days. In this era, Netflix business model is becoming
sky rocketing and constructive. The owners of Netflix started their business as a DVD rental
company in the year of 2007. The company is operating their VOD streaming business along
with DVD rental. Netflix is a TV demonstrates spilling suppliers and online film delivery source
with more than a 40 Million of conversational persons.
In Q1 2014, the Netflix streaming represented about 89.50% of shows. The company is
also capable of create unique substances in terms of on request video. In order to attract new
consumers and retain existing clients the business segmentation and customer target that has
been developed are elaborated in this business report. Apart from that, a cost structure, value
streaming, key resources, customer relationship and interrelationship details are also illustrated
in this business model.
2. Business Model: Netflix
2.1 Building blocks
The business model developed by Osterwalder and Pigneur are comprises of nine
interrelated blocks. The business model canvas visually represents each of the nine building
blocks and act as a tool to accomplish successful demonstration, analysis, designing and business
modeling. The building blocks or elements for this model are customer segmentation, value
positioning, channels, revenue stream, key partnership, cost structure, key resources and