What Are the Effects on Netflix Innovation of the Value Chain?

In: Business and Management

Submitted By Lakolut
Words 3203
Pages 13
Media & Innovation
What are the Effects of Netflix’s
Innovation of the Value Chain?

Source: (Netflix, n.d.a)

WS 15/16

Current Issues in Media and Communication


Table of Contents
• Key Slides
• Getting to know Netflix
• Disruptive Innovation of the Value Chain
• Effects of the Innovation
• Outlook
• Bibliography

WS 15/16

Current Issues in Media and Communication


Key Slides 1/3
Netflix can be regarded as a service business model within the video-ondemand area. It is known for being the pioneer offering its users entertainment content for a subscription fee.
Since the foundation of Netflix in 1997 the new business concept turned into a success story with more than 70 million members around the world.
People in 190 countries have access to Netflix‘s wide range of media entertainment possibilities and Netflix plans to add more to its list.
The fact that their previous expansion meant 130 new countries in one go forecasts that Netflix will become a very important and influential global player in media entertainment industry. But how does all of it start?
Innovation was the key. Netflix’s success in the new video rental business was based on the idea to offer an online DVD mail service. Adding new technology to a breakthrough idea created a combination which was meant to succeed.
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Current Issues in Media and Communication


Key Slides 2/3
The users of the Netflix service are those who pay for it. In exchange to their subscription fee they receive legal access to Netflix’s media database.
Moreover every customer will be offered a personalized service with for instance media ratings or recommendation options. Another plus for Netflix is that they avoid advertisement to earn more money. Instead of that they plan to raise fees without destroying the original add-free value proposition.…...

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