Management Report: Netflix's Global Expansion and Growth Strategies

This report provides an overview of Netflix's global growth and expansion strategy. It examines whether this expansion is a core part of the company's growth strategy. The report analyzes the company's remarkable growth, from serving 7 million US subscribers to nearly 93 million worldwide. It explores how Netflix disrupted the video rental and television industries, adapting its business model to include streaming services and original television series. The report highlights Netflix's strategies regarding content, cost, and competition, including its licensing deals, partnerships with cell phone and cable operators, and its ability to thrive in the face of competitors like Amazon. The report concludes by noting Netflix's presence in over 190 countries and the increasing revenue from international streaming, which exceeded domestic streaming revenue for the first time in the second quarter of 2018. The report references key sources to support its arguments.

Running head: MANAGEMENT
Professional Management
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT
Executive Summary:
The aim of the report is to provide an overview into the global growth of the Netflix. The report
puts for wards argument whether the expansion of Netflix is part of the growth strategy of the
company. The report also provides a justification of the arguments through proper reasoning.

2MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Arguments Relating to Netflix Expansion in Any Country.............................................................3
Conclusion:......................................................................................................................................4
References:......................................................................................................................................5

3MANAGEMENT
Introduction:
The report aims at providing an insight into global growth of Netflix along with
providing an analysis of whether it is a part of the company’s strategy. The global growth of
Netflix acts as a bigger factor in determining the success of the company (Brennan, 2018).
Arguments Relating to Netflix Expansion in Any Country
Within a decade, Netflix had a growth from being a service serving 7 million US
subscribers to the one that served close to 93 million services across the world (netflix.com,
2019). The ability and growth of the company in breaking into well established industries first
into the video rental and now into film and television has been one of rarest accomplishment.
Netflix forced the existing television industry into radically changing the practices.
It is also to be noted that when Netflix was launched in the year 1990 it only distributed
film DVDs via mail. The convenience of service led to the disruption of existing industry of film
rental service that ultimately led to the demise. In the meanwhile, Television was experiencing
renaissance with the introduction of the cable channels that also saw the introduction of the
complex storylines targeted to specific audience. As the channels earned revenue from both the
advertisers and subscribers they were successful even when the programs did not reach the mass
audience. Besides, the advancement in the compression technology along with the higher speed
internet services allowed larger video files in getting easily streamed over internet.
Such developments led to the creation of technological stage for the Netflix to evolve
from its DVD business to a video streaming service at the national level. This made television

4MANAGEMENT
series an integral part of business model of Netflix. By the year 2016, 70 percent of steaming
was television based.
According to Evens & Donders (2016), television has been distributed by the broadcast
wave which represented a revolutionary technology through sending wireless signal over major
swaths of country. It is to be noted that broadcast technology is capable of sending one message
at a time to every single individual within the range. In this context, it can be said that video
streaming services like Netflix delivers the programming on demand through the internet where
the viewers can make a choice as to when and what to watch rather than watching what is being
shown. Thus, while the task of the traditional channel lies in developing a schedule, the key task
of the portal lays in the cultivation of library of the programs.
This was part of the global expansion strategy of Netflix with a focus on the content,
cost and competition (Aguiar & Waldfogel, 2018). As far as the content is concerned the video
streaming service bulked up the licensing deals as there has been stronger demand from the
foreign audiences in the regional language. Till date, Netflix translated its catalog and apps into
close to 20 languages. As far as the cost is concerned, Netflix negotiated with the operators of
the cell phone and cable thereby providing access to the potential users without spending a
fortune. As far as the competition strategy is concerned Netflix experienced a stronger growth
even in the face of the competitors like Amazon.
Conclusion:
On a concluding note, by the year 2017, the company operated in close to over 190
countries and in present times close to 73 million subscribers of the total 130 million subscribers

5MANAGEMENT
outside United States. However, in second quarter of the 2018, revenue for international
streaming exceeded the revenues of the domestic streaming for the first time.

6MANAGEMENT
References:
Aguiar, L., & Waldfogel, J. (2018). Netflix: global hegemon or facilitator of frictionless digital
trade?. Journal of Cultural Economics, 42(3), 419-445.
Brennan, L. (2018). How Netflix Expanded to 190 Countries in 7 Years. Retrieved from
https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years
Evens, T., & Donders, K. (2016). Mergers and acquisitions in TV broadcasting and distribution:
Challenges for competition, industrial and media policy. Telematics and
Informatics, 33(2), 674-682.
netflix.com ,(2019). Retrieved from https://www.netflix.com/