{"id":20658,"date":"2014-12-01T18:44:27","date_gmt":"2014-12-01T23:44:27","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=20658"},"modified":"2014-12-01T18:44:27","modified_gmt":"2014-12-01T23:44:27","slug":"netflix-5","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2014\/12\/01\/netflix-5\/","title":{"rendered":"Netflix"},"content":{"rendered":"
by Paul Haramis<\/pre>\n
\"\"
Netflix Logo – Courtesy of pr.netflix.com [1] <\/a><\/p><\/div>\n
Corporate Headquarters [2]<\/a><\/strong><\/p>\n
100 Winchester Circle, Los Gatos, CA 95032<\/p>\n
Phone: +1 (408) 540-3700<\/p>\n
www.netflix.com<\/a><\/span><\/p>\n
Key Executives [3]<\/a>:<\/strong><\/p>\n
\"Reed
Reed Hastings,\u00a0 Founder and CEO<\/p><\/div>\n
\"David
David Wells,\u00a0 Chief Financial Officer<\/p><\/div>\n
\"Ted
Ted Sarandos, Chief Content Officer<\/p><\/div>\n
\"Neil
Neil Hunt, Chief Product Officer<\/p><\/div>\n
\"Greg
Greg Peters, Chief Streaming and Partnerships Officer<\/p><\/div>\n
\"Tawni
Tawni Cranz, Chief Talent Officer<\/p><\/div>\n
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History [4]<\/a>:
\n<\/strong><\/p>\n
\"http:\/\/www.qualitylogoproducts.com\/blog\/wp-content\/uploads\/2012\/02\/netflix-envelope-e1329161999677.jpg\"
Netflix didn’t offer streaming services until 2007 – Photo courtesy of qualitylogoproducts.com<\/p><\/div>\n
Reed Hastings founded Netflix in 1997 with Marc Randolph<\/a> [4]. The company was initially founded to offer online movie rentals. Customers would select a movie from the database and have it shipped directly to their home. In 1999, the company introduced monthly subscriptions, a format that the company still uses today. In 2002, Netflix first became available to the public on the NASDAQ<\/a>. In 2007, Netflix began its streaming service, which has allowed the company to see exponential growth. Today there are more than 53 million members of Netflix, all of whom are scattered around the globe.<\/p>\n
\u00a0Financials [5]<\/a>:<\/strong><\/p>\n
\"netflix<\/a>
Courtesy of Google Finance<\/a><\/p><\/div>\n
The third quarter was disappointing for Netflix as it fell short of its internal projections. They believed they would make around $1.41 billion dollars, but instead made around $1.22 billion dollars [4].\u00a0This is largely due to new subscriptions coming in at 980,000 as compared to the 1.3 million they projected. One of the biggest factors for the lower than anticipated new subscribers is believed to be the rise in price for a monthly subscription. The price rose from $7.99 a month to $8.99 a month<\/a>. As part of their damage control, Netflix said that sometimes they over-predict their growth and sometimes they undersell it. This was to much avail as Netflix saw a 25% decrease in their stock after their third quarter earnings were released [6]<\/a>. Some entrepreneurs saw this as an unbelievable opportunity<\/a>. Netflix addressed fears that this was due to competition by saying, “Since our per-member viewing and retention in the US are as strong as ever, we don’t think increased competition from piracy, TV Everywhere<\/a>, Amazon Prime Instant Video<\/a>, Hulu<\/a>, etc., is a major factor” [5]. This still didn’t prevent stock from dropping another 4% when HBO<\/a> announced that HBO Go<\/a> will be offered as a stand-alone streaming service and users won’t need an HBO cable subscription [5]. Netflix has been predicting this since 2011 and believes that since the content available on both is different, that both companies can continue to grow moving forward [5].<\/p>\n
Original Content:
\n<\/strong><\/p>\n
Netflix’s original content continues to be extremely strong and Netflix responded by creating additional new content as well as renewing current shows. In the third quarter, Netflix released an adult animated show “BoJack Horseman”<\/a> as well as two new seasons of their hit shows “Orange is the New Black”<\/a> and “The Killing”<\/a> [5]. In addition, today Netflix announced that season 3 of the hit-show House of Cards<\/a>, will be premiering on February 27, 2015 [7]<\/a>.<\/p>\n