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

Netflix - Essay ExampleNetflix 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 keep order by the collection of revenue from the various periodical subscriptions paid by the customers for streaming content, its domestic segment derives revenue from monthly DVD-by-mail subscriptions. The companys content is delivered to its users over the internet through various attached devices such as personal computers, Macs, Blue-ray players, play stations, home theatre systems and Internet video players. The companys revenue growth is estimated at about 32.9% which has been undercoat 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 rentals in the United States and about 3-5 percentage for all the countys home video rentals. ... Netflix has put in place a number of cost management measures that do in helping the company effectively balance the declining rental costs, some of these measures include the companys 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 depiction title licensing from the studio apartment 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 DVDs 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 mov ies, the company is seen to first purchase them and then package each DVD into a red folder which is clearly labeled with the companys logo. Netflix also ensures that it maintains well(p) 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 customers 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