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Changing Marketing Strategy for Netflix

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Chose a company that you feel needs a tweak to its marketing strategy and recommend a change. Provide a rationale for your recommendation.

In 2011, Netflix made two major blunders that impacted the number of subscribers, revenue, and the stock price: the separation of the DVD business and the increase in subscription fees. Assess the situation today. Determine what price Netflix paid to get where they are today.

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Solution Summary

The response provides you a structured explanation of the declining profits of Netflix and the need for a new marketing strategy. It also gives you the relevant references.

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The situation today is that the sales revenues of Netflix are increasing however, the company is incurring very high selling and administrative costs and research/development costs. These costs are bringing down the operating income to a very low level.

Let us assess the current situation of Netflix. It is the market leader for subscription video on demand. Currently, it accounts for 89% of TV streams. Close competitors Hulu Plus had 10% and Amazon Prime's 2%. Video streaming is growing with increased television programming. The popularity of video streaming is growing because it gives access to ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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