Netflix Business Model | Case study | How Netflix Earns Money? 📱
People often ask me how do I gather all the data about different business models for my Youtube channel( Intellectual Indies)
So I thought How about I assemble all the details about all the business models on my website lapaas.com.
After reading this blog, I am sure you’ll get all the details about the Business Model of Paytm from Funding to How do they earn
A man has been diagnosed with a Netflix addiction after spending eight hours a day over the past six months!
Are you that crazy for Web Series? If yes, have you wondered How Netflix business model operates?
Netflix Revenue Procedure?
Earn from Netflix?
Learn a new language with Netflix?
Yes, you heard it right! After reading this detailed Netflix case study you’ll know the ins and outs of the Netflix business model be it How do they earn, Funding, Expenditure and their marketing strategy.
What’s in it for me ?
This detailed Netflix case study would help us get to know about their business model, revenue model of Netflix from scratch. FOUNDATION YEAR: Netflix was started on Jan 1, 1997 FOUNDER: Netflix was founded by Marc Randolph and Reed Hastings. ABOUT TOP MANAGEMENT: https://media.netflix.com/en/management-team
What is Netflix and How OTT(Over the top) Works? 🔍Netflix, a streaming content provider that allows users to binge watch TV Shows, Movies. It is a subscription-based stream OTT Service which provides online streaming consisting of a library of films and TV Shows. THE BIGGEST OTT PROVIDER IS NETFLIX.
How Netflix become a Billion dollar Titan(Success Story) 🕵♂Netflix was initially a DVD rental company, they brought these rental services online by creating an online portal and started providing online rental services. Steadily, Netflix started producing their own content. Netflix’s first self- commissioned content series was a house of cards released in 2013.
REVENUE MODEL | HOW NETFLIX EARNS? 👨🏻💼🤑
- RENTAL INCOME THROUGH DVD RENTING.
- PROVIDING SUBSCRIPTIONS: Monthly/Annual Subscription Plans
HOW YOU CAN EARN MONEY THROUGH NETFLIX? 😍< 👨🏻💼🤑LOL! You got it right. Main aim of Netflix case study is to educate people about how Netflix business model makes money. With no doubt, Netflix has a worldwide audience associated with it. You can work as a translator as Netflix has a presence in over 190 countries So, one can make money by translating the works of Netflix. Are You Eligible to become a translator? Company has designed a test for its selection procedure to avoid cranky translations. Unfortunately, Netflix has disabled this feature 🙁 LEARN A NEW LANGUAGE WITH NETFLIX: 🔠 Language Learning with Netflix is a chrome extension used as a translator. How does it work? Select the Subtitle of the language you’re interested in learning. HERE THE QUESTION ARISES: How much you can pay monthly for entertainment services? Comment below and share your thoughts 😉
IDEOLOGY 🧠Netflix is basically doing psycho-graphic segmentation. Say for example an individual X has its office timings from 9 PM to 8 PM i.e. he will be able to devote time for entertainment after his office hours. So he will be comfortable in watching the episodes of a web/tv series whenever he wants in his free time. Netflix has made this easier for these kinds of individuals. Netflix target these types of audiences. Psycho-graphic segmentation i.e. segmenting according to psychology. Now, Revenue can not be calculated without expenditures analysis. Let’s have a look at that too:
EXPENDITURES OF NETFLIXNetflix has to bear a price binge watch your favourite web series. What are these costs?
- PRODUCTION COST
- LICENSING COST
- SERVER COST
- MARKETING COST
PROBLEMS FACED BY NETFLIX IN INDIA 🤦♂According to a survey conducted by intellectual Indies, People in India are not willing to pay more than 500 Rs. monthly for availing OTT services. A recent report by Counterpoint Research shared problems that Netflix has faced in India.
GROWTH IN INDIA: 📈
- Netflix has started thinking locally in India. This fact is evident as Netflix is developing a political series in partnership with shah rukh khan owned Red Chillies Entertainment.
- Association with Bollywood Stars.
- Netflix may partner with Whats app ( to increase customer base)
COMPETITOR ANALYSIS 📊Netflix is facing numerous threats from several of its competitors. Major competitiors: new emerging ott users:
- Amazon Prime Video
- HBO NOW
SACRED GAMES: Netflix 📺A Turning point for OTT in India One of the most talked web series in the town. Starring Saif Ali Khan and Nawazudin Siddiqui the web series is available on Netflix. Sacred Games has solely increased the customer base of Netflix in India and often compared with Narcos( a prosperous web series) Have you watched sacred games on Netflix or not?
INSIGHTS FROM EARLY STAGE 💹
|Headquarters Regions||San Francisco Bay Area, Silicon Valley, West Coast|
|Head Office||Los Gatos, California, United States|
|Founded Date||Jan 1, 1997|
|Founders||Marc Randolph, Reed Hastings|
|Type of Funding (Last)||Post-IPO Debt|
|Number of Employees||1001-5000|
|Downloads (30 Days)|
|Monthly Download Growth||4.19%|
|Number of Current Team Members||162|
|Legal Name||Netflix, Inc.|
|Child Hubs||Netflix Alumni Founded Companies|
|Stock Symbol||NASDAQ: NFLX|
|No. of Acquisitions||2|
|StoryBots||May 9, 2019||StoryBots acquired by Netflix|
|Millarworld||Aug 7, 2017||Millarworld acquired by Netflix|
|Feb 20, 2019||InfraDigital Nusantara||—||Seed Round – InfraDigital Nusantara||—|
|Jun 19, 2017||Milk VFX||No||Venture Round – Milk VFX||£2M|
|Feb 4, 2008||Roku||—||Series B – Roku||$6M|
FREQUENTLY ASKED QUESTIONS ⁉
- IS NETFLIX MODEL SUSTAINABLE?
Right now, Netflix is incurring too much cost on its working. If it continues to increase its customer base, definitely would help them in gaining more and more revenue and provide sustainability to it.
- HOW DOES NETFLIX’S RECOMMENDATION WORKS?
The recommendation system works by putting together data collected from different places. Based upon your watch history Netflix collects data and informs algorithms regarding it.
- IS NETFLIX THE LARGEST STREAMING SERVICE OR NOT?
Closing in on 60 M Customers, Netflix Remains No. 1 U.S. Streaming Service.
What are your views regarding the same? Comment Below and Share your ideas!
My Perspective on (Netflix Business Model):
What if we keep the subscription Plan free for everyone on Netflix just like Youtube and revenue will be generated from Advertisements.
I think this will make OTT easily accessible to everyone and those who want Ad-free Entertainment, a nominal charge would be applied.
With this, Advertisers can target people on the basis of their interest.
Suppose I run a Mobile cover Business if I want to target an audience who watches Sacred games and want to sell them Sacred Games Mobile Covers. What do you think?
Updated on 15th June 2019
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