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Netflix Essay

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Below is an essay on "Netflix" from Anti Essays, your source for research papers, essays, and term paper examples.

Summary of Issue
NetFlix.com Inc., an company providing DVD rental services, is faced with a critical decision - whether or not to proceed with the company’s anticipated IPO on condition that the company can ensure sustainable growth and achieve long-run objectives. To help the company make the decision, the report would like to review its business model and re-evaluate its future cash flows.
Business Model
NetFlix business model, exclusively focusing on Internet-based DVD rental service, has two key aspects: the Marquee Queue and personal movie finder service. The Marquee Queue, a list of movie selection, is adopted to keep a steady flow of movies, with one DVD returned, another promptly sent out. This allows customers to have up to four movies at one time, but also keep the movies they had seen and want to see in an organized fashion. The personal movie finder service offers individualized movie recommendations to and constructs preference profile for each subscriber. As an online intermediary for movie entertainment, NetFlix not only helps subscribers select movies, but helps the industry market movies and target audience. The revenue of NetFlix mainly comes from the subscription fee. Thus, the objective of the company is to convert free trial subscriber to paid-status and retain the customer for as long as possible.  
The NetFlix business model is extremely client-based and user-friendly. From the way they charge their customers for the services they provide to the development of their own business ventures, the cost to the customer is kept very low. With the rapid adoption of the new DVD technology, NetFlix has taken advantage of a unique revenue stream, but with the recent economic downturn, NetFlix has failed to couple that success in growth with adequate cash flow and net working capital.
Timeline of events related to the acquisition of a new subscriber (first three months)
  * NetFlix provides the new subscriber one month free trial services....

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Netflix. Anti Essays. Retrieved December 13, 2018, from the World Wide Web: http://parimatchstavki7.com/free-essays/Netflix-599303.html