BACKGROUND

1. What is Netflix?
- Netflix is the name of an online movie watching service that started in the US
and is gradually gaining popularity around the world.
- It is known as a widely popular on-demand video data transmission service and
up to now it is available in more than 130 countries (including Vietnam).
- Netflix contains all copyrighted movies, high quality videos and has applications
to watch movies on many types of devices, from laptops, phones, tablets, to Smart
TVs and all game consoles.
- Netflix's main content is diverse television programs such as movies,
documentaries, and award-winning entertainment programs.
2. Device support
- Watch directly on Netflix.com website
- View on smartphone
- TV: Supports Android TV, Apple TV, Smart TV.
- PlayStation, Xbox game consoles.
- Chromecast.
* Netflix has Closed Captioning subtitles and many different languages around the
world, but not for all movies, only some.
3. Netflix channels
- Netflix service includes movie genres such as movies, series, TV shows,
documentaries, science... these movie genres are mostly American releases.
4. History of Netflix (according to Wikipedia)
- Randolph and Hastings came up with the idea for Netflix while commuting
between their home in Santa Cruz and Pure Atria's headquarters in Sunnyvale while
waiting for government regulators to approve the merger
- Hastings invested $2.5 million in startup cash for Netflix. Randolph admired the
fledgling e-commerce company Amazon and wanted to find a large catalog of portable
items to sell over the Internet using a similar model. They considered and rejected
VHS tapes as too expensive to stock and too delicate to transport.
- On March 31, 1997, they tested the concept of selling or renting DVDs by mail,
by sending a compact disc to Hastings' home in Santa Cruz.
- When the disc was intact, they decided to enter the $16 billion home video rental
and sales industry. Hastings is often quoted saying that he decided to start Netflix
after being fined $40 at a Blockbuster store for being late to return a copy of Apollo 13.
- April 14, 1998, Netflix was launched, as the world's first online DVD rental store,
with only 30 employees and 925 titles available, almost the entire DVD catalog in print
at the time. that, through a pay-per-rental model with rates and due dates similar to
traditional competitor, Blockbuster.
5. Netflix Mission:
+ Change the future of television
• Netflix announced a giant step forward when it said it had established services in
more than 130 countries, moving closer to its goal of becoming the first online TV
channel in the world.
• Currently, Netflix owns more than 63 million subscribers globally
+ The past shapes the future
 • From the moment Netflix was founded in 1997, Hasting foresaw that consumers
would love to download movies over the internet. This represents Hastings' incredible
vision, as in 2000, less than 7% of American households had broadband connections.
+ Freedom and responsibility
• Netflix develops into a company with a culture of “freedom and responsibility
• Netflix has done its role well and brought customers a real sense of satisfaction,
creating the foundation for strong growth today.
6. Netflix perspective: Dominating the Oscars
- The COVID-19 epidemic gives movie lovers the habit of staying at home to
watch online movie platforms like Netflix, thereby gradually changing the psychology
of the distinction between online movies and movies in theaters.
- With a diverse film library and rich content, many people predict that Netflix can
win up to 3 nominations for the Oscar's Best Movie award in 2021.

BACKGROUND

- Initially, the globally dominant online movie empire only sold and rented DVDs
through its website. All infrastructure is still very sketchy. The company's inventory at
that time was only 900 discs.
- But at that time, a special feature of the website helped the company attract
many customers. That is the Flix Finder search system, allowing you to quickly search
for movies by title, actor or director.
- And perhaps one of the most important decisions in the history of Netflix and
Hastings was choosing to stop charging for each individual rental transaction.
Hastings launched the Marquee program to gain a superior position, especially with
rival Blockbuster. This program eliminates the concept of “return deadlines” for rented
DVDs and late fees.
- For $15.95 per month, customers can rent four DVDs and place them in a
prepaid Netflix envelope for return. Guests can cancel their subscription at any time.
This was almost unheard of in service contracts in general at that time.
- On January 16, 2007, Netflix launched a new service - streaming videos
directly to viewers' personal computers. For the first time in the 100-year history of
television, customers can choose what they want to watch and enjoy at any time.
Netflix officially took over the rights of media and television corporations and handed
them over to individuals.

 With far and wide vision, Hastings has helped Netflix become successful and
strong. He said that in 2007, Netflix released its billionth DVD.
 LOOK FURTHER TO GROW STRONGER

- For many years, Netflix has actively operated flexibly to increase users, while
competing with many competitors in the market.
- A big coup for Hastings was convincing game console manufacturers (like
Sony's PS, Nintendo's Wii) to embrace the idea of his Netflix streaming service.
- Streaming services have taken off, Netflix has reached agreements with the
world's leading manufacturers of video game equipment and televisions, so revenue
has grown very strongly.
- In 2010, Hastings appeared with the father of Apple (when Apple introduced
the iPhone 4) to introduce the first Netflix application for iPhone, allowing phone users
to watch movies easily.
- Although Netflix beat Blockbuster, the age of streaming has given rise to new
competitors. Amazon has Prime Video service, Disney has Disney+ and is gradually
withdrawing its content from Netflix, Apple has TV+ service, YouTube is gradually
moving towards videos with high quality produced programs; There are also other
threats from Hulu and HBO. However, at least for now, Hastings does not consider
any of the above to be his main opponents.
- Then, not only distributing content, Netflix turned to producing feature films,
documentaries and TV shows, bringing down Hollywood.
- Now, Netflix is constantly evolving in its use of technology to manage user
data. Every time you use Netflix – whether on your phone, iPad, laptop or TV – the
company is constantly collecting data about you and your habits. But subscribers
don't have to worry about privacy because Netflix collects data to serve them
better.
- It's all thanks to the turning point in transforming the business model on digital
platforms - switching to streaming video on demand, contributing to creating a
revolution in entertainment on Internet television.
 NETFLIX CHANGED THE TELEVISION
ENTERTAINMENT INDUSTRY THANKS TO
UNDERSTANDING CUSTOMERS

- The outbreak of the Covid-19 epidemic has brought the entertainment and
media industry to a standstill. However, external influences do not affect "giant" Netflix
as the media company still achieves outstanding growth with 16 million new
registrations in the first quarter of 2020. The secret to helping Netflix maintain its
momentum growth over many years thanks to customer-centric thinking.

- Although Netflix has become a global phenomenon, the company has

gone through many ups and downs since its founding in 1998 as a DVD movie
rental service by mail.

- The wrong "moves" at that time almost crushed Netflix if the executives
did not promptly realize their mistakes and change the way they operated.

- In 2011, Netflix announced it would separate its DVD rental and streaming
services into a subsidiary called Qwikster, increasing subscription prices for both
services by 60%. This sudden change was announced via a hastily drafted email by
CEO Reed Hastings to all of the company's customers.

- That hasty decision without research caused Netflix to lose 800,000

subscribers and its stock price dropped 77% within 4 months. After an outcry,
Netflix scrapped plans for Qwikster and Hastings apologized for the way the company
announced the changes.

 That mistake helped Netflix realize a big lesson about the role of customer-
centricity. By listening to customers and developing services according to their
needs, Netflix has grown strongly and gained a solid foothold in the market.
 SURVIVE BY ADAPTING
- Netflix entered the media industry at the time when VHS was gradually
forgotten and "gave way" to the development of DVD. The “big guy” has proven that
keeping up with technological changes is the key to maintaining customer
satisfaction and loyalty.

- It started out as a DVD rental company, but when DVDs gradually became
obsolete, the executives soon found fertile business ground - live streaming services.
Changing the business model may put Netflix at risk, but it is the drastic action and
close adherence to consumer market needs that makes the company the largest and
most popular online service on the market.

Before providing television services, Netflix used to be a DVD rental company.

RETAIN CUSTOMERS WITH UNDERSTANDING

- Netflix has been successful in keeping up with new trends by listening to
customers to find the right direction. The company is paving the way for targeted
content marketing in the streaming video industry.

- The clearest proof of Netflix's understanding is through content marketing.

Netflix has created complex algorithms to suggest relevant content to customers from
its catalogs. These can be general categories such as “romantic comedies” or more
detailed categories such as “American television series with strong female roles”.
Specific content, aimed at the right audience, makes the audience interested and has
more suitable options without spending too much time searching.
- In addition to offering attractive suggestions, another trick that makes viewers
spend hours on Netflix is that the company packages and releases the entire series
(some have up to hundreds of episodes) and lets the audience choose any episode
for themselves. to watch, instead of playing each episode sequentially.
 - Netflix has carefully researched viewer habits and the results show that 76%
of users like to "watch" movies continuously. The same number also said that this will
make the next movies more interesting.

- Those numbers led Netflix to decide to release the entire series at the same
time.

 If Netflix did not stop to listen to audience feedback and continued to do

the same things as many other media companies, they certainly would not have
achieved the important milestones they have now.

Netflix research shows that audiences prefer to watch movies released in series
rather than individual episodes.

FOCUS ON DEVELOPING ORIGINAL MOVIES

PRODUCED BY NETFLIX
- In addition to releasing films produced by other studios, in recent years, Netflix
has begun to step up its ambitions by focusing on making its own films. The original
shows and movies are all highly appreciated by critics and some even continue to
produce many new seasons.

- This move puts Netflix one step ahead of its competitors. Because when
competitors caught up with Netflix in streaming services, the company "encroached"
into the market of creating its own content.

- Netflix has done what many other companies have overlooked: Provide the
content audiences want instead of hoping they like what's being produced.
 - 2019 was a "life-changing" year in filmmaking for Netflix (before that they also
spent money on filmmaking, but not much): they produced and released a total of 60
feature films. Meanwhile, major studios like Warner Bros also only made 21 films,
Disney Studios had 12 films, Universal Studios had 19 films.
- Netflix has survived and thrived in its 20+ years of existence by making
decisions based on the customer. How competitors operate or the development of
technology are all things to study, but the ultimate answer to the question of how to
attract customers lies with the public.
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