Netflix 2011

Consultant

 report:

 “Netflix

 in

 2011”

Introduction

In

 2011

 Netflix’s

 success

 suffered

 a

 sudden

 slowdown

 and

 a

 change

 of

 course.

 Not

 many

months

 ago

 Hasting,

 founder

 and

 CEO

 of

 Netflix

 was

 nominated

 as

 the

 magazine’s

 business

person

 in

 2010

 (Fortune

 magazine).

 In

 last

 seven

 years

 Netflix’s

 operating

 income

 and

 last

year

 it

 even

 grew

 by

 about

 38.83%

 (Exhibit

 1).

The

 slowdown

 was

 due

 to

 the

 fact

 that

 Hasting

 announced

 that

 Netflix

 would

 split

 in

 two

companies,

 one

 for

 streaming

 video

 service

 (Netflix)

 and

 one

 for

 DVD

 service

 (Qwikster).

 The

most

 part

 of

 consumers

 didn’t

 accept

 this

 change

 demonstrating

 their

 attachment

 to

 the

company.

 Netflix

 stock

 started

 to

 decrease,

 and

 now

 Hasting

 has

 to

 face-­‐off

 the

 situation,

 he

has

 to

 find

 a

 way

 to

 manage

 this

 transition.

Purpose

 of

 report

 (and

 recommendation)

This

 reports

 aims

 to

 analyze

 the

 situation

 in

 2011.

-­‐In

 first

 understand

 the

 market

 evolution

 and

 competition,

 (Blockbuster:

 finding

 his

 business

model,

 confronting

 with

 Netflix,

 finding

 his

 reaction

 and

 analyzing

 it)

-­‐Analyze

 Netflix’s

 innovation,

 what

 kind

 of

 change

 it

 made

-­‐Future

 step,

 how

 Hastings

 could

 manage

 the

 situation?

 He

 took

 the

 right

 choose

 to

separate

 the

 two...