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Netflix is an American media services company headquartered in California that provides online streaming of films and television shows. It has over 193 million paid subscribers worldwide. Originally a DVD rental service launched in 1997, Netflix now produces original content and streams movies and TV shows to over 190 countries. It has experienced rapid revenue growth in recent years, reaching $20 billion in revenue in 2019, up from $6.8 billion in 2015. Netflix is now the largest entertainment company by market capitalization.

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Shaon Chandra Saha 181-11-5802
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39 views

SM Assignment

Netflix is an American media services company headquartered in California that provides online streaming of films and television shows. It has over 193 million paid subscribers worldwide. Originally a DVD rental service launched in 1997, Netflix now produces original content and streams movies and TV shows to over 190 countries. It has experienced rapid revenue growth in recent years, reaching $20 billion in revenue in 2019, up from $6.8 billion in 2015. Netflix is now the largest entertainment company by market capitalization.

Uploaded by

Shaon Chandra Saha 181-11-5802
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction: Netflix, Inc.

is an American technology and media services


provider and production company headquartered in Los Gatos, California. The
company's primary business is its subscription-based streaming service which
offers online streaming of a library of films and television series, including those
produced in-house. Netflix had over 193 million paid subscriptions worldwide,
including 73 million in the United States. It is available worldwide except in the
following: mainland China, Syria, North Korea, and Crimea (due to U.S.
sanctions). The company also has offices in France, United States, United
Kingdom, Brazil, the Netherlands, India, Japan, and South Korea. Netflix is a
member of the Motion Picture Association (MPA). Today, the company produces
and distributes content from countries all over the globe. Netflix has taken more of
an active role as producer and distributor for both film and television series, and to
that end, it offers a variety of "Netflix Original" content through its online library.
Netflix services operated in more than 190 countries. Now adays Netflix became
the largest entertainment/media company by market cap. (internet 1)

Reference:
1. Topic: Introduction
By: Author- Wikipedia
Available URL: https://en.wikipedia.org/wiki/Netflix
Access date: 13-08-2020

History of the business: Netflix was first founded in August of 1997


by two serial entrepreneurs, Marc Randolph and Reed Hastings. The company
began out in Scotts Valley, California, and has grown to become one of the world's
leading internet entertainment platforms. When it first opened, Netflix was purely a
movie rental service. Users ordered movies on the Netflix website, and received
DVDs in the post. Netflix's mail-order rental model would directly challenge the
market dominance of bricks-and-mortar rental giants like Blockbuster. In fact,
Blockbuster could ultimately not compete with the move to online streaming and
rentals and filed for bankruptcy in 2010. Netflix launches the first DVD rental and
sales site, Netflix.com in 1998. Their subscriber-based business model launches in
1999. Netflix debuts a subscription service, offering unlimited DVD rentals for one
low monthly price. Netflix goes public in 2002 with a membership count at
600,000 in the US, Netflix makes its initial public offering (on the Nasdaq, under
the ticker “NFLX”). The stock is initially offered for $15 a share, with an initial
offering of 5,500,000 shares. The company celebrates 1 million accounts in
2003.This year, Netflix hits a new record for the number of members, with more
than 1 million. 2004 sees a doubling in the number of Netflix accounts. This year,
Netflix's member base surpasses 2 million. At the same time, Netflix also faces one
of its first encounters with the legal system when they are sued for false advertising
in relation to claims of "unlimited rentals" with "one-day delivery". Netflix sees
huge growth in member numbers, reaching 6,3 million subscribers by years' end.
The company also launches its "Netflix Prize", promising a whopping $1 million to
the first person, or team, who can achieve a set accuracy goal in recommending
movies based on personal preferences. Netflix also released around 100 million
anonymous movie ratings, using a system that rates films from one to five stars.
This is the largest set of such data released to date Netflix teams up with various
consumer electronics companies in 2008. In 2010 Netflix is available on the Apple
iPad, iPhone and iPod Touch, the Nintendo Wii, and other Internet-connected
devices at this point. Netflix launches its service in Canada. In 2014, Netflix
launched in 6 new countries in Europe (Austria, Belgium, France, Germany,
Luxembourg, and Switzerland), and won 7 Creative Emmy Awards. Netflix now
had more than 50 million members globally. In March 2018 Netflix employees
launched a phone playing the original series "Star Trek: Discovery" into space.
This stunt was to celebrate the service now being available in more than 190
countries around the world. In 2020 Netflix's subscriber base has grown to well
over 180 million, with 70 million or so from the United States alone.

Reference:
2. Topic: History of the business
By: Author-
Available URL: https://interestingengineering.com/the-fascinating-history-of-
netflix#:~:text=Netflix%20was%20first%20founded%20in,purely%20a%20movie%20rental%20service.
Access date: 13-08-2020
Financial Analysis: If we first look at their income statements to know
the financial status of Netflix, then we can understand how much money they earn
every year. If we look at Netflix's balance sheet, we can see how much asset they
have. Their income statements and balance sheet from 2015 to December 2019 are
given below:
Revenue and net income of Netflix all values USD Millions.

Revenue
2019 2018 2017 2016 2015
20,156 15,794 11,693 8,831 6,780

REVENUE
25000

20156
20000
15794
15000
11693
10000 8831
6780
5000
2015 2016 2017 2018 2019

0
1 2 3 4 5

YEAR REVENUE

We saw that Netflix Inc.’s revenues increased year by year. Their revenue increase 34.41%
from year 2016 to 2017. Then increased 35.08% from year 2017 to 2018. Netflix increased their
revenue 27.62%-year 2019 than 2018. I think this is very good for Netflix.

Net income
2019 2018 2017 2016 2015
1,867 1,211 559 187 123
NET INCOME
2500

2000
2015 2016 2017 2018 2019
1867
1500

1000 1211

500 559

0 123 187
1 2 3 4 5

Year Net income

In this chart we saw that how their net income increased year by year. Netflix
increased their net income 52.22%-year 2015 to 2016. Then 199.41% income
growth in 2017. In 2018 Netflix grow their income 116.71% than 2017. And the
last year 2019 they increase their net income 54.13% than year 2018.

Reference:
3. Topic: Financial Analysis
By: Author-
Available URL: https://www.wsj.com/market-data/quotes/NFLX/financials/annual/income-
statement

Access date: 16-08-2020


Intro: Netflix, Inc. is an American technology and media services provider and
production company headquartered in Los Gatos, California. The company's
primary business is its subscription-based streaming service which offers online
streaming of a library of films and television series, including those produced in-
house. Today, the company produces and distributes content from countries all
over the globe. Netflix has taken more of an active role as producer and distributor
for both film and television series, and to that end, it offers a variety of "Netflix
Original" content through its online library. Netflix services operated in more than
190 countries. Now adays Netflix became the largest entertainment/media
company by market cap.

History: Netflix was first founded in August of 1997 by two serial entrepreneurs,
Marc Randolph and Reed Hastings. The company began out in Scotts Valley,
California, and has grown to become one of the world's leading internet
entertainment platforms. When it first opened, Netflix was purely a movie rental
service. Netflix launches the first DVD rental and sales site, Netflix.com in 1998.
Their subscriber-based business model launches in 1999. Netflix debuts a
subscription service, offering unlimited DVD rentals for one low monthly price.
The company celebrates 1 million accounts in 2003.This year, Netflix hits a new
record for the number of members, with more than 1 million. In 2010 Netflix is
available on the Apple iPad, iPhone and iPod Touch, the Nintendo Wii, and other
Internet-connected devices at this point. Netflix launches its service in Canada. In
2020 Netflix's subscriber base has grown to well over 180 million, with 70 million
or so from the United States alone.

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