Ksdg Essay

319 WordsNov 27, 20112 Pages
NETFLIX New business model 1. CUSTOMER VALUE PROPOSITION a. Target customer Internet users who legally want to watch a movie, TV shows at home, without having to go rent a DVD, blueray, etc. b. Job to be done * Access : you have to go to stores in order to rent a DVD * Time : * takes time to go rent a DVD in a store * gain of time choosing the movie to watch * Insufficient wealth : low speed downloading * Skill : * need handy interface to watch movies * easy way of payment c. Offering - Use of internet because everyone has internet at home now, simple subscription, easier than going to stores * Very easy to use : after subscribing, the clients just have to pay and click on the play button. - use of new technologies, network bandwidth improvements 2. PROFIT FORMULA d. Revenue model 8*20M = 160M turnover Not on the number of rented DVDs but on the number of subscribers e. Cost Structure * pay the PS2, XBOX, iphone, etc * pay the movie providers * key assets : No physical assets * direct costs : hosting : storage of all the movies (servers), internet, royalties, software design (T&amp;C) * indirect costs : electricity, suppliers(ex-Stars), wages, contracts with the Netflix providers (Playstation, Wii, XBOX, etc) * economies of scale : the more customers Netflix has, the more netflix’s suppliers are going to negociate f. Margin model Subscription price * number of subscribers – (Price of suppliers + expenses of the) g. Resource velocity Good connectivity connexion 3. KEY RESOURCES h. People 800 employees i. Technology, products Servor j. Equipment Servor k. Information Market studies on movies l. Channels Internet, TV, Computer, playstation,

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