the one thats blue highlighted please read before do the wrong question

number 5 MATKOU 10T SUDscription video on demand? What does a SWOT analysis reveal about the overall attractiveness of Netflix's situation? How have Netflix's business strategy choices strengthened or weakened its competitive position in the streaming video on-demand industry? Discuss how the company's senior management has chosen to increase the horizontal or vertical scope of the firm. Has Netflix's increase in scope also been a part of its international strategy? Is the international strategy best characterized as a multi-domestic strategy, global strategy, or transnational strategy? Which strategy for entering international markets should be selected for China? 6. What do the data in case Exhibits 1.2 and 5 reveal about Netflix s financial and operating performance 1. What 3-4 top priority issues do CH Red Hastings und Nettles management need to address 8. Whitrecommendations would you makute Nahi Reed Hastings Alamin Yurrebanendates should cover what to do ubat cach of the top ridentitled in question ho 6 ma 12325 23 (A Poole LA MST Dashb C Get Hor Gel HD Inbox Hive HAriser 678/4/4/3572500 Uolate etflix's Strategy ili's strategy 2019 was focused squarely Growing the number of domestic and international berben Enhancing the appeal of its library of streaming content, with an increasing emphasis on exclusive animaleries and TV series produced in desse Spenting presivelyco marketing and advertising in all of the countries and prographic region the company had recently entered to broaden awareness of the Netflix brand and service and thereby support the company recobjective to rapidly grow it be of streaming subscribers Expanding the number of tiles that members could download for offline viewing Continously enhancing is the interface Subscriber Growth edilix comes were keenly aware that rapid subscriber prowth was the key to boosting the company's profitability and justifying the company lotty stock price of 5360 is of May 22.019), which was 134 times the company 2018 diluted earnings per share of 268 and 61 times the EPS of $5.88 that Wall Street analyse and etfix in went unicipating the company would eam in 2019. Netfit executives expected that come to 80 percent of the gains in subenher growth in 2019 and beyond would come in the international ma-- in 2015 the growds in intermational subcribers was 1.2 percent of total subscriber growth (including free trial) New Content Acquisition Over the yea, Netflix bad spent considerable time and energy establishing strong ties with various entertainment video provide to both expand content library and pain tento new releases as soon as poble after they were released for first showing in movie theaters. Prie to the recent push by Amazon Prime and Hule lot streaming sites. Netfli hatsaccessfully negotiated eacher rights to show titles produced by a few studio In August 2011. Needed wout for Kidection of website that contained a large selection of Lidly movies and TV shows. By March 2012. over bila salute de programming had been treated to Neben New movie downd ditontoh direct purchase share a content Nett quand many of the new mivie WVDs for a low upfront fee in exchange for a comment for den period of time there are a percentage beso ya for based in contention Alethem-hari period expered for the Net generally had the option of returning the title the adio porting the side er des copies of the title Outcas. Netflix and DVDs for a fried for performanslation and to the cards TV prodes that we mecben a helmet for viewing. Nettetalyet a free them ned period of time with the totale out the better up come with the Hack 7 7 8 0 U Tue 1:26 PM QE G 100% ks People Tab Window Help x Get Hom Get No Hon X ONE Ledate Pepe In August 2011. Netflix introduced Just for Kirctic itews that contained a large selection of driedy movies and TV shows By March 2012. over one has a lot for Kids programming had been med to Nelis members New content we were from maior and distributions through dimet purchases, the prements, and licensing agreements to the content. Netflix many of its new DVDs from mais for a low upfront fee in exchange for a content for a defined period of time to share a percentage of besortswfee based on contestation here in pied expired for a title, Netflix penerally had the option of returning the title to the teaching the tide denger of the title occasion Netflix alio purchased DVDs for a fed fee per dine from various station, distributors, and athar Is the come und TV pes that were med to write is the Internet for instant viewing, Netflix penerally paid for to lie the content for a ne pred with the tools real out over the term of the lime greements to better match content payments with the stream of scription coming is for fut com Polling the picofthebitem. Neiti heroved the content from bray of streaming or med thermal of the best when me helieved there was still habere is the content to justify the renewal for Over the past five you Netlady prowing briber bone as well as the streaming her growth at Amazon Prime Video, Halo, and other providers) pave modid the work broadcasters of popular TV shows only onering power to come higher prices for the Netflix wat of its diminering power inquiring content that would be specially appealing to wscribe the state that paying bigated for mange had the company's current and future profit margin. Notheless, Netflix en tres heldere was still mom for the company caping if it could grow is the home for me to me than cover the income Ascari Nexhmently began devoting the marity of two quisition but to producing orginal movies and TV -house Several of these were che la locale with local producers to appeal directly, it exclusively, to scriben is a particularity orgion. A 20 th centime well with incrund the world, even though it had been produced in Pompe for Braniline of a popramog well in when the paper dead. In the second half, Nett decedaewoga prodced in Denmark called the Netlinsecutives believed would have bad global pallong with the second season the trains Other wriginal com hd 2013 incheon We of Nettimot watched televishowround the world in 2011).reaming mo a la CGLOW, Wholesale in Schi Clurit find comedy feature with Adam Sudad, called The Marketing and Advertising Niple tingiten, but pengait changed and porn honda scopri di pondo all kinderom 33.7 million in 2008 13 mil 30 percent of 200000 Shitin 2016 (12 percentar 141 2017025:37 Million 2016 persones de Dette er in the Standard of way mentor less Mschook al 1 6 7 7 8 0 Y G H L UR x OMSTX Dashbo Get Get Ho x IN IM HAWI Update Marketing and Advertising Neitlik wed multiple marketing approaches to attract cribers, but especially online advertising paid search listings, radi on social media sites, and permission bundet) and on replonal and in television. To sput subscriber powth, Netflix hal boosted marketing expenditures of all kinds from $25.7 million in 2000 (16 x penontot memek) s $142 million in 2005 20.8 percent of revences) to $298.8 million in 2010 (11.8 percent of revenues to 5 billion in 2016 (12.4 percent of to $1.44 billion in 2017 (12.3 percent of reas) and to $2.37 hilice in 2015 (150 percent of revel. These expenditures related to Online and television advertising in the United States and newly entend countries. Advertising campaigns of one type or another were under way more or lo continously, with the ture of one-month free trial and nouncement of new and forthcoming opinal titles sally being the prominent ad features, Nedite expenditures for digital and television advertising were $1 billion in 2018,51.09 billion in 2017.55424 million in 2016 and 57143 million in 2015 Costs porting to free trial scriptions Payments to the company's porten These parties couliste mainly of (1) comumer products manufacturers who produced and distributed devices particularly remote controls that facilitated catnectine TVs and other media equipment in Netflix, and certain cable providers and other multichannel video programming distribution mobilen und steel service providers who had been collaborating with Netflix to make it easy for their customers to connect to Netflix For example.most alt bols of latenet connected TV came with a peristalled Netflix app that was easily accessed via the TV mote, some TV semes even had Netli button that provided Nettiren with some click comection to their wacht In 2018-channel TV providers le Comcast und Sky were oferte cutomers the optice to handle a scription to Nerflix in their posted het packages Nettbewed collaher with a host of cable and mobile phone to cross all prographic makets would likely become common pti ry quickly Martial din partnering with mobile operations to create quick and easy to procedures for mobile phone we world and downloadable proprie Netflix believed was purticularly important to make mobile streaming from this uncle to the people who belically by wed to have their hip with Nation mobile la 2019. Netis peces growth in marketing expenditures to growth, partly because had and singin matematica for new originales to create mare density of viewing and conversation and each title Netflix CEO Reed is explained the tople behind trying to certain We a big hit in a partire per demographic pret Way of impos bombeo de la bible Nothi's Title Selection Software and Efforts to Enhance its Interface with Users Yerli halvdel proprietary of the came to easily moving propens for types of die G, PR may came wenge of the ringed by the scene wie ich could watch on preview numer TV they wished Mostly powered traded to a commendation for the title that was modely viewed TV shows that the mead poena forma de Macbook & 7 6 8 T U 0 G H B. N M . 0785791/c4/6/584/4/4/36/2800 Update Marketing and Advertising Netflix used multiple marketing approaches to attract subscribers, but especially online advertising (paid search listings, banner ads on social media sites, and permission based e-mails) and ads on regional and national television. To spur subscriber growth, Netflix had boosted marketing expenditures of all kinds from $25.7 million in 2000 (16.8 percent of revenues) to $1420 million in 2005 (20.8 percent of revenues) to $298.8 million in 2010 (13.8 percent of revenues) to S1.1 billion in 2016 (12.4 percent of Tevenues) to $144 billion in 2017 (12.3 percent of revenues) and to $2.37 billion in 2018 (150 percent of revenues). These expenditures related to: Online and television advertising in the United States and newly entered countries. Advertising campaigns of one type or another were under way more or less continuously, with the lure of one-month free trials and announcements of new and forthcoming original titles usually being the prominent ad features. Netflix's page 306 expenditures for digital and television advertising were $1.8 billion in 2018, SL.09 billion in 2017. 5842.4 million in 2016, and $7143 million in 2015 Costs pertaining to free trial subscriptions Payments to the company's partners. These partners consisted mainly of (1) consumer products manufacturers who produced and distributed devices (particularly remote controls) that facilitated connecting TVs and other media equipment to Netflix, and (2) certain cable providers and other multichannel video programming distributors mobile operators, and Internet service providers who had begun collaborating with Netflix to make it easy for their customers to connect to Netflix. For example, most all brands of Internet connected TVs now came with a preinstalled Netflix app that was easily accessed via the TV remote; some TV remotes even had Netflix buttons that provided Netflix subscribers with a one-click connection to their watchlist. In 2018.multi-channel TV providers like Comcast and Sky were offering customers the option to bundle a subscription to Netflix in with their preferred channel packages. Netflix believed collaboration with a host of cable and mobile phone operators acnxs all geographic malkets would likely become common practice very quickly. Management was particularly interested in partnering with mobile operators to create quick and easy-to-use procedures for mobile phone users across the world to access Netflix streamed or downloadable programming. Netflix believed it was particularly important to make mobile streaming from Netflix instantly accessible to those people who basically only wanted to have their relationship with Netflix on a mobile device In 2019, Netflix expected its growth in marketing expenditures to outpace revenue growth, partly because it had started investing in more extensive marketing campaigns for new original titles to create more density of viewing and conversation around each title. Netflix CEO Reed Hastings explained the logic behind trying to make certain new titles a bigger hit in a particular nation or among a particular demographic segment We believe this density of viewing helps on both retention and acquisition, because it makes our original titles even less substinatable. Because we are so many countries, we we able to try different marketing approaches in different markets and continue to leam fhow best to market Netflix's orginal content and differentiate Nel trials providers Netflix's Title Selection Software and Efforts to Enhance its Interface with Users Netflix had developed proprietary software technology that allowed members to easily scan a movies length appropriateness for various types of audiences (G. Go R. primary cast members, gente, and an average of the ratings submitted by other subscribers (based on 1 to 5 stars). With one click, members could watch a short preview of a movie or TV show if they wished. Most importantly, perhaps, were algorithms that created a personalised 1. to Satar recommendation for each title that was a composite of a subscribers' own ratings of movies TV shows previously viewed, movies TV shows that the member had placed on a Watchlist for future viewing and mail deliv w ia 78126078579/1/6/584/4/4/34/3280:7.59 Update The Domestic and International Streaming Options Netflix launched its Internet streaming service in January 2007, with instant-watching capability for 2,000 titles on personal computers. Very quickly, Netflix invested aggressively to enable its software to instantly stream content to a growing number of "Netflix-ready devices, including video game consoles (made by Sony Microsoft, and Nintendo), Internet-connected DVD and Blu-ray players, Intemet-connected TVS, TIVO DVRs, and special Netflix players made by Roku and several other page 364 electronics manufacturers. At the same time, it began licensing increasing amounts of digital content that could be instantly streamed to subscribers. Initially. Netflix took a "metered" approach to streaming, in essence offering an hour per month of instant watching on a PC for every dollar of a subscriber's monthly subscription plan. In 2010, Netflix switched to an unlimited streaming option on all of its monthly subscription plans. According to one source, Netflix had an estimated 6.800 movie titles 14 and 530 TV shows available for streaming as of 2010. In recent years, however, Netflix had gradually shrunk the number of movie titles in its streaming library to approximately 4,000 as of early 2019 and dramatically increased the number of episodes of TV shows to approximately 4.700 in early 2019. Netflix bad increased the number of new original content offerings in each of the past six years. There were two reasons for the shift in the makeup of Netflix's streaming content. One reason was internal data showing that subscribers spent only about one-third of their time on Netflix watching movies, the second reason was a conviction on the part of Netflix's content executives that viewers were passionate about a movie, they Solidify its would have already seen it in theaters by the time it ended up on Netflix. To make the company's movie library more valuable for its subscriben. Netflix had been releasing a progressively large number of original movies (80 movies were released in 2018-the number for 2019 had not been announced as of May 2019) and creating more mult episode original TV series like past hits Home of Cards. The Crown. Orange Is the New Black, and Stranger Things. Going forward, Netflix was expected to continue to place greater emphasis on its own original content - both movies and original TV series-chiefly as a way to more strongly differentiate itself from competitor top management (1) had announced its intention to spend $9.1 billion on original content in 2019, up from $6 billion in 2017. Netflix spent more than $12 billionce original content production and licenses to show content produced by outside sources, according to a report by Variety magazine, Netflix's budget for new content (original production plus license wa expected to S15 billion in 2019 and 5178 billion in 2020 so Solidify.lt Netflix's Strategy n... (1) Netflix's strategy in 2019 was focused squarely en: Growing the mamber of domestic and international streaming subscribers MW Enhancing the appeal of its library of streaming content with an increasing emphasis on exclusive original movies and TV series procedim-boxe mole and Spending agressively on marketing and advertising in all of the countries and geographic mtions the company had recently entered to broadenawaits of the Netflit brand and service and thereby support the company's strategic objective to rapidly grow its base of streaming subscribers . Expunding the number of tiles that we could download for offline viewing A. 1) Continly enhancing its user interface Subscriber Growth lla AW 31260785791/11/6/58/4/4/38/26/10 20:59.7 CAT Update A Marketing and Advertising Netflix used multiple marketing approaches to attract subscribers, but especially online advertising (paid search listings, banner ads on social media sites, and permission based e-mails and ads on regional and national television. To spur subscriber growth, Netflix had boosted marketing expenditures of all kinds from $25.7 million in 2000 (16.8 percent of revenues) to S142.0 million in 2005 (20.8 percent of revenues) to $298.8 million in 2010 (13.8 percent of revenues) to S1.1 billion in 2016 (124 percent of revenues) to $1.44 billion in 2017 (12.3 percent of revenues) and to $2.37 billion in 2018 (150 percent of revenues). These expenditures related to Online and television advertising in the United States and newly entered countries. Advertising campaigns of one type or another were under way more or less continuously, with the lure of one-month free trials and announcements of new and forthcoming original titles usually being the prominent ad features. Netflix's page 306 expenditures for digital and television advertising were $1.8 billion in 2018, S1.09 billion in 2017.5842.4 million in 2016, and $714.3 million in 2015. Costs pertaining to free trial subscriptions Payments to the company's partners. These partners consisted mainly of (l) consumer products manufacturers who produced and distributed devices (particularly remote controls) that facilitated connecting TVs and other media equipment to Netflixand (2) certain cable providers and other multichannel video programming distributors mobile operators, and Internet service providers who had begun collaborating with Netflix to make it easy for their customers to connect to Netflix. For example, must alt brands of Internet connected TVs now came with a preinstalled Netlix app that was easily accessed via the TV remote, some TV remotes even had Netflix button that provided Netflix subscribers with a one-click connection to their watchlist ) In 2018, multi-channel TV providers like Comcast and Sky were offering customers the option to bundle a subpription to Netflix in with their preferred channel packages. Netflix believed collaboration with a host of cable and mobile phone operators across all geographic markets would likely become common practice very quickly. Management was particularly interested in partnering with mobile operators to create quick and easy-to-use procedures for mobile phone users across the world to fy its access Netflix streamed or downloadable programming. Netflix believed it was particularly important to make mobile streaming from Netflix instantly accessible to those people who basically only wanted to have their relationship with Netflix on a mobile device In 2019. Netflix expected its growth in marketing expenditures to outpace revenue growth, partly because it had started investing in more extensive marketing campaign 7) for new original titles to create more density of viewing and conversation around each title. Netflix CEO Reed Hastings explained the logic behind trying to make certain new titles a bigger hit in a particular nation or among a particular demographic segmenti We believe this density of viewing helps on both retention and acquisition, because it makes our original titles even less substitutable. Because we operate in many countries, are able to try different marketing approaches in different markets and continue to learn how hest to market Netilix's original content and differentie Netflix from rival strming providers)." Netflix's Title Selection Software and Efforts to Enhance Its Interface with Users Netflix had developed proprietary software technology that allowed members to easily scan a movies length appropriateness for various types of audiences (G, PG, or R. primary cast members, genre, and an average of the ratings submitted by other subscribers based on 1 to 5 stars). With one click, members could watch a short preview of a movie or TV show if they wished. Most importantly, perhaps were algorithms that created a personalized 1- to 5 star recommendation for each title that was a compra W number 5 MATKOU 10T SUDscription video on demand? What does a SWOT analysis reveal about the overall attractiveness of Netflix's situation? How have Netflix's business strategy choices strengthened or weakened its competitive position in the streaming video on-demand industry? Discuss how the company's senior management has chosen to increase the horizontal or vertical scope of the firm. Has Netflix's increase in scope also been a part of its international strategy? Is the international strategy best characterized as a multi-domestic strategy, global strategy, or transnational strategy? Which strategy for entering international markets should be selected for China? 6. What do the data in case Exhibits 1.2 and 5 reveal about Netflix s financial and operating performance 1. What 3-4 top priority issues do CH Red Hastings und Nettles management need to address 8. Whitrecommendations would you makute Nahi Reed Hastings Alamin Yurrebanendates should cover what to do ubat cach of the top ridentitled in question ho 6 ma 12325 23 (A Poole LA MST Dashb C Get Hor Gel HD Inbox Hive HAriser 678/4/4/3572500 Uolate etflix's Strategy ili's strategy 2019 was focused squarely Growing the number of domestic and international berben Enhancing the appeal of its library of streaming content, with an increasing emphasis on exclusive animaleries and TV series produced in desse Spenting presivelyco marketing and advertising in all of the countries and prographic region the company had recently entered to broaden awareness of the Netflix brand and service and thereby support the company recobjective to rapidly grow it be of streaming subscribers Expanding the number of tiles that members could download for offline viewing Continously enhancing is the interface Subscriber Growth edilix comes were keenly aware that rapid subscriber prowth was the key to boosting the company's profitability and justifying the company lotty stock price of 5360 is of May 22.019), which was 134 times the company 2018 diluted earnings per share of 268 and 61 times the EPS of $5.88 that Wall Street analyse and etfix in went unicipating the company would eam in 2019. Netfit executives expected that come to 80 percent of the gains in subenher growth in 2019 and beyond would come in the international ma-- in 2015 the growds in intermational subcribers was 1.2 percent of total subscriber growth (including free trial) New Content Acquisition Over the yea, Netflix bad spent considerable time and energy establishing strong ties with various entertainment video provide to both expand content library and pain tento new releases as soon as poble after they were released for first showing in movie theaters. Prie to the recent push by Amazon Prime and Hule lot streaming sites. Netfli hatsaccessfully negotiated eacher rights to show titles produced by a few studio In August 2011. Needed wout for Kidection of website that contained a large selection of Lidly movies and TV shows. By March 2012. over bila salute de programming had been treated to Neben New movie downd ditontoh direct purchase share a content Nett quand many of the new mivie WVDs for a low upfront fee in exchange for a comment for den period of time there are a percentage beso ya for based in contention Alethem-hari period expered for the Net generally had the option of returning the title the adio porting the side er des copies of the title Outcas. Netflix and DVDs for a fried for performanslation and to the cards TV prodes that we mecben a helmet for viewing. Nettetalyet a free them ned period of time with the totale out the better up come with the Hack 7 7 8 0 U Tue 1:26 PM QE G 100% ks People Tab Window Help x Get Hom Get No Hon X ONE Ledate Pepe In August 2011. Netflix introduced Just for Kirctic itews that contained a large selection of driedy movies and TV shows By March 2012. over one has a lot for Kids programming had been med to Nelis members New content we were from maior and distributions through dimet purchases, the prements, and licensing agreements to the content. Netflix many of its new DVDs from mais for a low upfront fee in exchange for a content for a defined period of time to share a percentage of besortswfee based on contestation here in pied expired for a title, Netflix penerally had the option of returning the title to the teaching the tide denger of the title occasion Netflix alio purchased DVDs for a fed fee per dine from various station, distributors, and athar Is the come und TV pes that were med to write is the Internet for instant viewing, Netflix penerally paid for to lie the content for a ne pred with the tools real out over the term of the lime greements to better match content payments with the stream of scription coming is for fut com Polling the picofthebitem. Neiti heroved the content from bray of streaming or med thermal of the best when me helieved there was still habere is the content to justify the renewal for Over the past five you Netlady prowing briber bone as well as the streaming her growth at Amazon Prime Video, Halo, and other providers) pave modid the work broadcasters of popular TV shows only onering power to come higher prices for the Netflix wat of its diminering power inquiring content that would be specially appealing to wscribe the state that paying bigated for mange had the company's current and future profit margin. Notheless, Netflix en tres heldere was still mom for the company caping if it could grow is the home for me to me than cover the income Ascari Nexhmently began devoting the marity of two quisition but to producing orginal movies and TV -house Several of these were che la locale with local producers to appeal directly, it exclusively, to scriben is a particularity orgion. A 20 th centime well with incrund the world, even though it had been produced in Pompe for Braniline of a popramog well in when the paper dead. In the second half, Nett decedaewoga prodced in Denmark called the Netlinsecutives believed would have bad global pallong with the second season the trains Other wriginal com hd 2013 incheon We of Nettimot watched televishowround the world in 2011).reaming mo a la CGLOW, Wholesale in Schi Clurit find comedy feature with Adam Sudad, called The Marketing and Advertising Niple tingiten, but pengait changed and porn honda scopri di pondo all kinderom 33.7 million in 2008 13 mil 30 percent of 200000 Shitin 2016 (12 percentar 141 2017025:37 Million 2016 persones de Dette er in the Standard of way mentor less Mschook al 1 6 7 7 8 0 Y G H L UR x OMSTX Dashbo Get Get Ho x IN IM HAWI Update Marketing and Advertising Neitlik wed multiple marketing approaches to attract cribers, but especially online advertising paid search listings, radi on social media sites, and permission bundet) and on replonal and in television. To sput subscriber powth, Netflix hal boosted marketing expenditures of all kinds from $25.7 million in 2000 (16 x penontot memek) s $142 million in 2005 20.8 percent of revences) to $298.8 million in 2010 (11.8 percent of revenues to 5 billion in 2016 (12.4 percent of to $1.44 billion in 2017 (12.3 percent of reas) and to $2.37 hilice in 2015 (150 percent of revel. These expenditures related to Online and television advertising in the United States and newly entend countries. Advertising campaigns of one type or another were under way more or lo continously, with the ture of one-month free trial and nouncement of new and forthcoming opinal titles sally being the prominent ad features, Nedite expenditures for digital and television advertising were $1 billion in 2018,51.09 billion in 2017.55424 million in 2016 and 57143 million in 2015 Costs porting to free trial scriptions Payments to the company's porten These parties couliste mainly of (1) comumer products manufacturers who produced and distributed devices particularly remote controls that facilitated catnectine TVs and other media equipment in Netflix, and certain cable providers and other multichannel video programming distribution mobilen und steel service providers who had been collaborating with Netflix to make it easy for their customers to connect to Netflix For example.most alt bols of latenet connected TV came with a peristalled Netflix app that was easily accessed via the TV mote, some TV semes even had Netli button that provided Nettiren with some click comection to their wacht In 2018-channel TV providers le Comcast und Sky were oferte cutomers the optice to handle a scription to Nerflix in their posted het packages Nettbewed collaher with a host of cable and mobile phone to cross all prographic makets would likely become common pti ry quickly Martial din partnering with mobile operations to create quick and easy to procedures for mobile phone we world and downloadable proprie Netflix believed was purticularly important to make mobile streaming from this uncle to the people who belically by wed to have their hip with Nation mobile la 2019. Netis peces growth in marketing expenditures to growth, partly because had and singin matematica for new originales to create mare density of viewing and conversation and each title Netflix CEO Reed is explained the tople behind trying to certain We a big hit in a partire per demographic pret Way of impos bombeo de la bible Nothi's Title Selection Software and Efforts to Enhance its Interface with Users Yerli halvdel proprietary of the came to easily moving propens for types of die G, PR may came wenge of the ringed by the scene wie ich could watch on preview numer TV they wished Mostly powered traded to a commendation for the title that was modely viewed TV shows that the mead poena forma de Macbook & 7 6 8 T U 0 G H B. N M . 0785791/c4/6/584/4/4/36/2800 Update Marketing and Advertising Netflix used multiple marketing approaches to attract subscribers, but especially online advertising (paid search listings, banner ads on social media sites, and permission based e-mails) and ads on regional and national television. To spur subscriber growth, Netflix had boosted marketing expenditures of all kinds from $25.7 million in 2000 (16.8 percent of revenues) to $1420 million in 2005 (20.8 percent of revenues) to $298.8 million in 2010 (13.8 percent of revenues) to S1.1 billion in 2016 (12.4 percent of Tevenues) to $144 billion in 2017 (12.3 percent of revenues) and to $2.37 billion in 2018 (150 percent of revenues). These expenditures related to: Online and television advertising in the United States and newly entered countries. Advertising campaigns of one type or another were under way more or less continuously, with the lure of one-month free trials and announcements of new and forthcoming original titles usually being the prominent ad features. Netflix's page 306 expenditures for digital and television advertising were $1.8 billion in 2018, SL.09 billion in 2017. 5842.4 million in 2016, and $7143 million in 2015 Costs pertaining to free trial subscriptions Payments to the company's partners. These partners consisted mainly of (1) consumer products manufacturers who produced and distributed devices (particularly remote controls) that facilitated connecting TVs and other media equipment to Netflix, and (2) certain cable providers and other multichannel video programming distributors mobile operators, and Internet service providers who had begun collaborating with Netflix to make it easy for their customers to connect to Netflix. For example, most all brands of Internet connected TVs now came with a preinstalled Netflix app that was easily accessed via the TV remote; some TV remotes even had Netflix buttons that provided Netflix subscribers with a one-click connection to their watchlist. In 2018.multi-channel TV providers like Comcast and Sky were offering customers the option to bundle a subscription to Netflix in with their preferred channel packages. Netflix believed collaboration with a host of cable and mobile phone operators acnxs all geographic malkets would likely become common practice very quickly. Management was particularly interested in partnering with mobile operators to create quick and easy-to-use procedures for mobile phone users across the world to access Netflix streamed or downloadable programming. Netflix believed it was particularly important to make mobile streaming from Netflix instantly accessible to those people who basically only wanted to have their relationship with Netflix on a mobile device In 2019, Netflix expected its growth in marketing expenditures to outpace revenue growth, partly because it had started investing in more extensive marketing campaigns for new original titles to create more density of viewing and conversation around each title. Netflix CEO Reed Hastings explained the logic behind trying to make certain new titles a bigger hit in a particular nation or among a particular demographic segment We believe this density of viewing helps on both retention and acquisition, because it makes our original titles even less substinatable. Because we are so many countries, we we able to try different marketing approaches in different markets and continue to leam fhow best to market Netflix's orginal content and differentiate Nel trials providers Netflix's Title Selection Software and Efforts to Enhance its Interface with Users Netflix had developed proprietary software technology that allowed members to easily scan a movies length appropriateness for various types of audiences (G. Go R. primary cast members, gente, and an average of the ratings submitted by other subscribers (based on 1 to 5 stars). With one click, members could watch a short preview of a movie or TV show if they wished. Most importantly, perhaps, were algorithms that created a personalised 1. to Satar recommendation for each title that was a composite of a subscribers' own ratings of movies TV shows previously viewed, movies TV shows that the member had placed on a Watchlist for future viewing and mail deliv w ia 78126078579/1/6/584/4/4/34/3280:7.59 Update The Domestic and International Streaming Options Netflix launched its Internet streaming service in January 2007, with instant-watching capability for 2,000 titles on personal computers. Very quickly, Netflix invested aggressively to enable its software to instantly stream content to a growing number of "Netflix-ready devices, including video game consoles (made by Sony Microsoft, and Nintendo), Internet-connected DVD and Blu-ray players, Intemet-connected TVS, TIVO DVRs, and special Netflix players made by Roku and several other page 364 electronics manufacturers. At the same time, it began licensing increasing amounts of digital content that could be instantly streamed to subscribers. Initially. Netflix took a "metered" approach to streaming, in essence offering an hour per month of instant watching on a PC for every dollar of a subscriber's monthly subscription plan. In 2010, Netflix switched to an unlimited streaming option on all of its monthly subscription plans. According to one source, Netflix had an estimated 6.800 movie titles 14 and 530 TV shows available for streaming as of 2010. In recent years, however, Netflix had gradually shrunk the number of movie titles in its streaming library to approximately 4,000 as of early 2019 and dramatically increased the number of episodes of TV shows to approximately 4.700 in early 2019. Netflix bad increased the number of new original content offerings in each of the past six years. There were two reasons for the shift in the makeup of Netflix's streaming content. One reason was internal data showing that subscribers spent only about one-third of their time on Netflix watching movies, the second reason was a conviction on the part of Netflix's content executives that viewers were passionate about a movie, they Solidify its would have already seen it in theaters by the time it ended up on Netflix. To make the company's movie library more valuable for its subscriben. Netflix had been releasing a progressively large number of original movies (80 movies were released in 2018-the number for 2019 had not been announced as of May 2019) and creating more mult episode original TV series like past hits Home of Cards. The Crown. Orange Is the New Black, and Stranger Things. Going forward, Netflix was expected to continue to place greater emphasis on its own original content - both movies and original TV series-chiefly as a way to more strongly differentiate itself from competitor top management (1) had announced its intention to spend $9.1 billion on original content in 2019, up from $6 billion in 2017. Netflix spent more than $12 billionce original content production and licenses to show content produced by outside sources, according to a report by Variety magazine, Netflix's budget for new content (original production plus license wa expected to S15 billion in 2019 and 5178 billion in 2020 so Solidify.lt Netflix's Strategy n... (1) Netflix's strategy in 2019 was focused squarely en: Growing the mamber of domestic and international streaming subscribers MW Enhancing the appeal of its library of streaming content with an increasing emphasis on exclusive original movies and TV series procedim-boxe mole and Spending agressively on marketing and advertising in all of the countries and geographic mtions the company had recently entered to broadenawaits of the Netflit brand and service and thereby support the company's strategic objective to rapidly grow its base of streaming subscribers . Expunding the number of tiles that we could download for offline viewing A. 1) Continly enhancing its user interface Subscriber Growth lla AW 31260785791/11/6/58/4/4/38/26/10 20:59.7 CAT Update A Marketing and Advertising Netflix used multiple marketing approaches to attract subscribers, but especially online advertising (paid search listings, banner ads on social media sites, and permission based e-mails and ads on regional and national television. To spur subscriber growth, Netflix had boosted marketing expenditures of all kinds from $25.7 million in 2000 (16.8 percent of revenues) to S142.0 million in 2005 (20.8 percent of revenues) to $298.8 million in 2010 (13.8 percent of revenues) to S1.1 billion in 2016 (124 percent of revenues) to $1.44 billion in 2017 (12.3 percent of revenues) and to $2.37 billion in 2018 (150 percent of revenues). These expenditures related to Online and television advertising in the United States and newly entered countries. Advertising campaigns of one type or another were under way more or less continuously, with the lure of one-month free trials and announcements of new and forthcoming original titles usually being the prominent ad features. Netflix's page 306 expenditures for digital and television advertising were $1.8 billion in 2018, S1.09 billion in 2017.5842.4 million in 2016, and $714.3 million in 2015. Costs pertaining to free trial subscriptions Payments to the company's partners. These partners consisted mainly of (l) consumer products manufacturers who produced and distributed devices (particularly remote controls) that facilitated connecting TVs and other media equipment to Netflixand (2) certain cable providers and other multichannel video programming distributors mobile operators, and Internet service providers who had begun collaborating with Netflix to make it easy for their customers to connect to Netflix. For example, must alt brands of Internet connected TVs now came with a preinstalled Netlix app that was easily accessed via the TV remote, some TV remotes even had Netflix button that provided Netflix subscribers with a one-click connection to their watchlist ) In 2018, multi-channel TV providers like Comcast and Sky were offering customers the option to bundle a subpription to Netflix in with their preferred channel packages. Netflix believed collaboration with a host of cable and mobile phone operators across all geographic markets would likely become common practice very quickly. Management was particularly interested in partnering with mobile operators to create quick and easy-to-use procedures for mobile phone users across the world to fy its access Netflix streamed or downloadable programming. Netflix believed it was particularly important to make mobile streaming from Netflix instantly accessible to those people who basically only wanted to have their relationship with Netflix on a mobile device In 2019. Netflix expected its growth in marketing expenditures to outpace revenue growth, partly because it had started investing in more extensive marketing campaign 7) for new original titles to create more density of viewing and conversation around each title. Netflix CEO Reed Hastings explained the logic behind trying to make certain new titles a bigger hit in a particular nation or among a particular demographic segmenti We believe this density of viewing helps on both retention and acquisition, because it makes our original titles even less substitutable. Because we operate in many countries, are able to try different marketing approaches in different markets and continue to learn how hest to market Netilix's original content and differentie Netflix from rival strming providers)." Netflix's Title Selection Software and Efforts to Enhance Its Interface with Users Netflix had developed proprietary software technology that allowed members to easily scan a movies length appropriateness for various types of audiences (G, PG, or R. primary cast members, genre, and an average of the ratings submitted by other subscribers based on 1 to 5 stars). With one click, members could watch a short preview of a movie or TV show if they wished. Most importantly, perhaps were algorithms that created a personalized 1- to 5 star recommendation for each title that was a compra W