Netflix Incorporation is a media-service providing company. It is a publicly held production company. The headquarters are in Los Gatos, California. The founding fathers are Reed Hastings and Marc Randolph. It comes under the MPA.
Earlier it was involved in sales of DVD and rental business by mail but later it switched to rental and then in 2010 it started off with the streaming business and then to production in 2013 with the series: House of Cards.
The company has been taking debts to increase its production and popularity as much as possible. It has billions of dollar debts but the company is doing great when it comes to the produced series and movies.
The company is held mainly by investors like The Vanguard Group, Capital Group Companies and BlackRock. There are other investors too.
Netflix Brand history
The initial days
The company was established in 1997 on 29th of August by the two founding fathers. Reed Hastings had invested the money for the startup and the amount was around $ 2.5 million.
Then in 1999, Netflix brought up the idea of monthly subscriptions and then in 2000 they came up with a model of single renting.
The rise of Netflix
Later in 2000, as the company was going through loss, it was ready to be sold to Blockbuster company just for $50 million. But the contract was declined.
Later due to the spurt of internet growth led to the success of the company but due to the 9/11 attacks the company again suffered loss and laid off some of its employees.
But again in 2002 the conditions became favorable for the growth of the company.
The profit and growth began in the year 2003 and it is growing till now.
By 2007, they had the streaming business and the DVDs sales came down drastically.
Red Envelope Entertainment had also started but later was closed to avoid any internal competitions with its partners.
The present day
Then in 2014, it had approached 41 countries and had subscribers around the world to be around 50 million.
Further, in 2016, Netflix had started to ban VPNs. Netflix in 2018, became one of the largest digital media companies.
The year 2019, Netflix had become a member of MPAA being the first of its kind in the association.
Netflix Brand value
The number of paid subscriptions speak for the value of the brand. It had around 183 million subscribers with 69 million residing in the U.S.A alone. The type of site is an over-the-top platform which provides media via the internet directly to the user.
According to the data of 2019, the revenue generated in 2019 was around $20 billion. It has about 6700 employees working for the success of the company.
It has made its place in the Fortune 500 list too. It has earned many more awards also.
Netflix Brand strategies
One of its kind
Earlier when it started it was one of its kind and the main business strategy is to provide the streaming services of a galore of videos, movies, in-house productions, podcasts etc. which are subscription-based.
It has a special segment in the galore of movies and videos called Netflix Originals from 2012.
It had managed to broadcast 126 series which came under Netflix Originals and this was more than any other media service provider.
Netflix was the first rental store renting out DVDs online.
Availability and services
It is available in almost all the countries except few like Syria, Crimea, China and North Korea. The number of paid subscribers speak about the availability too as there are 182 million subscribers out of which 69 million are from the U.S.A alone. It has its office in countries like India, Brazil, Japan, South Korea and the Netherlands.
Since 2016 it has been available in more than 190 countries.
The services are available on a lot of tech devices like computers, mobile phones, tablets, TVs and gaming consoles too.
Walking with the trend
Netflix initially had ideas of bringing up a box and providing services with the help of the box and they had successfully pulled off this new plan by 2005 but later with the success of YouTube, the streaming industry was benefited and thus Netflix also gave inputs for the online streaming instead of the “Netflix box”. By 2007, Netflix had a streaming online business.
The video recommendation came handy and this is how the company impressed its users.
In 2016, they added a new feature which allowed the user to download the content and watch it during the unavailability of the internet.
Great deeds never go in the drain
In the year 2015, Netflix decided to create the content accessible for blind people too. This was announced by Tracy Wright who was the director of the content operations. The announcement mentioned that the company will be adding an audio description for the visually challenged and blind people to understand.
They also added screen readers, facilitated the content browsing and audio description added to other series as well.
Some deals for development
In 2017, Netflix entered China too through another streaming service known as iQiyi owned by Baidu. In 2017, Netflix took over Millarworld which was the publishing company of the comic book. The writer of the comic book was Mark Millar.
Further it had a deal with the famous American television producer, Shonda Rhimes. In the year 2018, Netflix had a collaboration with Sky channels. It had another deal with the famous individual Kenya Barris with its own company Khalabo Ink Society for the production of content on Netflix. There were several other deals that year like there was a deal with the famous writer, Harlen Coben, then with another famous creator, Alex Hirsch.
It didn’t stop there Netflix went on to acquire ABQ Studios, there was a deal with Paramount Picture too.
In the year 2019, it acquired StoryBots. There was a deal with DHE.
They even had a deal with D.B. Weiss and David Benioff who are popular because of the Game of Thrones series.
They have been expanding in the kid’s category with the help of Nickelodeon.
They later went for anime too which is a popular genre of content that people have been watching and thus has been in agreements with six different creators from Japan.
Netflix Future strategies
The company has been working and looking more into the making of content more friendly for differently-abled people. They have been working for the streaming issues also because of the global pandemic issue and thus, in this the broadband companies have requested to look into the matter of pressure on the network providers.
It has decided to focus on the censorship issues too and look for deep depressing matters to spread awareness but not let it led to another problem in the society. Netflix with its tie-ups has been engaged into the creation of content that is unique, new and authentic. They have been focusing on the content strategy too.
Netflix is a role model company for so many others who are into the media service providing business. It has made its content and timing as flexible as possible for the viewers to watch at anytime, anywhere.
The pandemic has raised concern for the mental health of the population but with services of Netflix people have been able to surf through a sea of genres and watch its content to keep themselves busy and engage their minds. It has been a great, reliable source of entertainment during this pandemic.