|
88%
agree
63 votes
|
Largest online retail service |
|
100%
agree
13 votes
|
Proliferation of Netflix-ready devices adds value to Netflix's digital streaming service |
|
100%
agree
13 votes
|
Size of subscriber base gives Netflix negotiating leverage for content |
|
61%
agree
36 votes
|
More competition could mean slower growth for Netflix |
|
71%
agree
14 votes
|
Uncertainty around the cost of streaming content |
|
40%
agree
10 votes
|
Competition from Amazon |
May 19, 2013
Netflix (NASDAQ: NFLX) is the world's largest video and television episode rental subscription service, having pioneered the model and charging customers a flat monthly fee for unlimited rentals without due dates, late fees, shipping fees or pay-per-view fees[1]. Their 50 regional shipping centers across the United States help almost 95% of their customers receive their DVDs within a day of shipping, while their rating system gives customers recommendations based on their rental history[2]. In fiscal year 2010, Netflix recorded revenues of $2.1 billion and net income of $161 million.
As of late, Netflix has focused on expanding its content base and international expansion. Netflix obtains content from studios, distributors and other suppliers because a lot of these license agreements give Netflix exclusive rights to a collection of titles. In 2010 it gained exclusive rights to stream Relativity Media movies and formed a five-year streaming deal with pay-TV network Epix[3][4].
(Read more at Wikinvest
) - Company Overview
- Business Features
- Trends and Forces
- Opportunities to integrate with broadband-enabled devices allows for stable recurring revenue streams
- PPV, on-demand and TiVo undermine demand for the Netflix product
- The gradual popularity of online movie viewing forces Netflix to shift its focus to online streaming
- Continued reliance on DVD shipments leaves Netflix at the mercy of the United States Postal Service (USPS)
- Competition
- Principle Competitors
- References
