Netflix Essay Example | Topics and Well Written Essays - 1250 words

Netflix - Essay Example Netflix is seen to essentially operate in three different segments which include: Domestic streaming, Domestic DVD and International streaming. While its domestic and international streaming derives revenue for the company by the collection of revenue from the various monthly subscriptions paid by the customers for streaming content, its domestic segment derives revenue from monthly DVD-by-mail subscriptions. The company’s content is delivered to its users over the internet through various connected devices such as personal computers, Macs, Blue-ray players, play stations, home theatre systems and Internet video players. The company’s revenue growth is estimated at about 32.9% which has been found to be about thrice the current home video industry as a whole. By charging monthly subscription fees that are at times as low as $7.99 for unlimited monthly subscription (Carr, 2011), and having no late fees, Netflix is able to account for an estimated 90% of all online DVD re ntals in the United States and about 3-5 percent for all the county’s home video rentals. ... Netflix has put in place a number of cost management measures that serve in helping the company effectively balance the declining rental costs, some of these measures include: the company’s use of up to date technology, and its provision of adequate convenience to customers all serve to greatly aid against its competitors. Netflix Value chain Analysis Inbond Logistics: The Netflix has been able to sign a deal with Time Warner Bros. that in addition to extending its movie title licensing from the studio will also serve to add more TV shows to Netflix library. Netflix is seen to have greatly standardized its physical distribution method by using USPS to easily distribute DVD’s across the country. Operations: Netflix has several factory centers across the United States that manage the distribution of its television programs and movies. To distribute its DVD movies, the company is seen to first purchase them and then package each DVD into a red folder which is clearly label ed with the company’s logo. Netflix also ensures that it maintains good quality titles for physical distribution in addition to providing all its customers with quality customer care. The company offers its customers a limitless inventory and is continuously expanding its bandwidth so as to continue offering its customer’s seamless move and TV shows streaming. Outbound Logistics: Netflix is seen to be focused on attempting to build more partnerships with the various movie producing companies so as to be able to add more titles to their ever expanding library. This is aimed at providing their customers with more DVDs more quickly. The constant availability of new movie titles and TV shows is seen to