1. Netflix Company Overview EECS 441 William Klibanow

2. Products Video streaming Thousands of titles Distributed via internet devices DVD rental Over 100,000 titles Distributed via mail

3. Financials (NFLX) Market capitalization: Profit margin (ttm): $4.97B 8.14% Revenue (ttm): $2.92B ROA (ttm): 17.97% Gross profit (ttm): 23.6M subscribers $805.27M All data from Yahoo! Finance

4. History 1997: Founded by Reed Hastings Pain of late fees Flat, monthly fee 2002: IPO for $82.5M 2007:1B DVD deliveries 2008: Instant streaming service

5. Anecdote Relaxing on winter break Catch up on movies, TV shows Watch from Nintendo Wii in living room Easy interface, minimal effort, inexpensive

6. Whats Hot? Class action law suit by shareholders Short-term contracts expiring Split instant streaming and DVD businesses and raised prices 2011 NFLX price range: $300 to $80.86 Executives sold over $90M of NFLX

7. Secret Sauce Low switching costs for non-users Widely available Inexpensive: $8/mo Cinematch algorithm

8. Competition

9. Mobile App Instant streaming Over 280,000 Android and iPhone/iPad downloads Apple store rating: 3.5/5 Android store rating: 4/5

10. Prediction: Negative Uncertainty with looming lawsuit Increased competition in live streaming segment High supplier power Difficult and expensive to obtain contracts Low cost to the consumer