Company Overview:
Netflix revolutionizes the way people watch TV shows and movies. With more than 30 million streaming members in the United States, Canada, Latin America, the United Kingdom, Ireland and the Nordics, Netflix, Inc. is the world's leading internet subscription service for enjoying movies and TV programs. For one low monthly price, Netflix members can instantly watch movies and TV programs streamed over the internet to PCs, Macs and TVs. Among the large and expanding base of devices streaming from Netflix are the Microsoft Xbox 360, Nintendo Wii and Sony PS3 consoles; an array of Blu-ray disc players, internet-connected TVs, home theatre systems, digital video recorders and internet video players; Apple iPhone, iPad and iPod touch, as well as Apple TV and Google TV. In all, over 800 devices that stream from Netflix are available. (Netflix.com)
Services
Netflix Inc. is the world’s leading Internet subscription service for TV shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs, and their high definition successor, Blu-ray discs delivered quickly to their homes.
Netflix is a pioneer in the Internet delivery of TV shows and movies, launching their streaming service in 2007. Since this launch, they have developed an ecosystem of Internet-connected devices and have licensed increasing amounts of content that enable consumers to enjoy TV shows and movies directly on their TVs, computers and mobile devices. As a result of these efforts, they have experienced growing consumer acceptance of and interest in the delivery of TV shows and movies directly over the Internet. They believe that the DVD portion of their domestic service will be a fading differentiator to their streaming success. (10-K item 1)
Segments
Beginning with the fourth quarter of 2011, the Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenue from monthly subscription services consisting solely of streaming content. The Domestic DVD segment derives revenue from monthly subscription services consisting solely of DVD-by-mail.
Subsidiaries
Red Envelope Entertainment was a film production and distribution arm of Netflix. It was designed to generate content for Netflix's DVD-by-mail service. The company produced and distributed 100 films before being closed in 2008.
Red Envelope Entertainment
On September 18 of 2011, Netflix announced a subsidiary called Qwikster which was to be Netflix's separate DVD-only business. This meant an entirely different account with a different website and billing for customers despite the fact that it is owned and operated by Netflix entirely. It was to offer movies, TV shows and even video games via DVD rental by mail. However, negative reaction to this new business model was abundant. On October 10 of 2011, after less than a month since announcing the Qwikster DVD rental by mail service, Netflix decided to step back into its old ways. Qwikster proved to be a failure and was eliminated. Streaming and DVD by mail content went back to all being available on Netflix.com once again and Netflix had no subsidiaries. (Dailytech.com)
Qwikster: The brand designed to fail
Huffington Post
Company Timeline >>
Business Breakdown
Since Netflix does not have many branches or subsidiaries, it cannot be considered a media conglomerate. However, there is more than enough evidence of globalization. It began in September of 2010, when Netflix offered Canada an unlimited streaming plan without DVDs. The globalization expanded to Latin America and the Caribbean in September 2011. Netflix announced plans to launch service in the UK and Ireland early in 2012. Netflix also announced in 2011 that they would release their service in 43 countries of Central and South America, including Brazil, the biggest market in the region and one of the fastest growing economies in the world. There isn't much evidence of horizontal integration, but there has been evidence of vertical integration, seen in Netflix Inc.'s decision to start producing original scripted content. The company premiered their first original series on February 6th, 2012. The show was called Lilyhammer. Netflix is in charge of developing the content as well as distributing it. Netflix has several partnerships with marketing, production, and distribution companies such as ABC/Disney and Starz which supports media synergy. The CEO of Netflix, Reed Hastings also serves on the board of Microsoft, Facebook, and numerous non-profit organizations which has helped in gaining connections through joint ventures.
Netflix revolutionizes the way people watch TV shows and movies. With more than 30 million streaming members in the United States, Canada, Latin America, the United Kingdom, Ireland and the Nordics, Netflix, Inc. is the world's leading internet subscription service for enjoying movies and TV programs. For one low monthly price, Netflix members can instantly watch movies and TV programs streamed over the internet to PCs, Macs and TVs. Among the large and expanding base of devices streaming from Netflix are the Microsoft Xbox 360, Nintendo Wii and Sony PS3 consoles; an array of Blu-ray disc players, internet-connected TVs, home theatre systems, digital video recorders and internet video players; Apple iPhone, iPad and iPod touch, as well as Apple TV and Google TV. In all, over 800 devices that stream from Netflix are available. (Netflix.com)
Services
Netflix Inc. is the world’s leading Internet subscription service for TV shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs, and their high definition successor, Blu-ray discs delivered quickly to their homes.
Netflix is a pioneer in the Internet delivery of TV shows and movies, launching their streaming service in 2007. Since this launch, they have developed an ecosystem of Internet-connected devices and have licensed increasing amounts of content that enable consumers to enjoy TV shows and movies directly on their TVs, computers and mobile devices. As a result of these efforts, they have experienced growing consumer acceptance of and interest in the delivery of TV shows and movies directly over the Internet. They believe that the DVD portion of their domestic service will be a fading differentiator to their streaming success. (10-K item 1)
Segments
Beginning with the fourth quarter of 2011, the Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenue from monthly subscription services consisting solely of streaming content. The Domestic DVD segment derives revenue from monthly subscription services consisting solely of DVD-by-mail.
Subsidiaries
Red Envelope Entertainment was a film production and distribution arm of Netflix. It was designed to generate content for Netflix's DVD-by-mail service. The company produced and distributed 100 films before being closed in 2008.
Red Envelope Entertainment
On September 18 of 2011, Netflix announced a subsidiary called Qwikster which was to be Netflix's separate DVD-only business. This meant an entirely different account with a different website and billing for customers despite the fact that it is owned and operated by Netflix entirely. It was to offer movies, TV shows and even video games via DVD rental by mail. However, negative reaction to this new business model was abundant. On October 10 of 2011, after less than a month since announcing the Qwikster DVD rental by mail service, Netflix decided to step back into its old ways. Qwikster proved to be a failure and was eliminated. Streaming and DVD by mail content went back to all being available on Netflix.com once again and Netflix had no subsidiaries. (Dailytech.com)
Qwikster: The brand designed to fail
Huffington Post
Company Timeline >>
Business Breakdown
Since Netflix does not have many branches or subsidiaries, it cannot be considered a media conglomerate. However, there is more than enough evidence of globalization. It began in September of 2010, when Netflix offered Canada an unlimited streaming plan without DVDs. The globalization expanded to Latin America and the Caribbean in September 2011. Netflix announced plans to launch service in the UK and Ireland early in 2012. Netflix also announced in 2011 that they would release their service in 43 countries of Central and South America, including Brazil, the biggest market in the region and one of the fastest growing economies in the world. There isn't much evidence of horizontal integration, but there has been evidence of vertical integration, seen in Netflix Inc.'s decision to start producing original scripted content. The company premiered their first original series on February 6th, 2012. The show was called Lilyhammer. Netflix is in charge of developing the content as well as distributing it. Netflix has several partnerships with marketing, production, and distribution companies such as ABC/Disney and Starz which supports media synergy. The CEO of Netflix, Reed Hastings also serves on the board of Microsoft, Facebook, and numerous non-profit organizations which has helped in gaining connections through joint ventures.