2.5.

Implications of changes and the outcomes

Netflix has changed everything. The days of linear television setting viewing schedules
are over. People have been able to choose what they want to watch, when and where for
years now. And TV shows and movies are having an even bigger impact on real life.
Today, Netflix is the world's leading streaming company with almost 80.5 million Netflix
members worldwide. Thirty-five million people worldwide watch Netflix on TV. This
was not an easy path for the company to become profitable, it took nearly eight years for
the company to become profitable.

To achieve such success, Netflix changed its original business plan and adopted a
subscription model. It has been profitable and has expanded its business. The driving
force is the ability for customers to watch the movies they like whenever they want and
as many times as they want without any deadline. It has completely transformed the
movie rental industry.

Also the idea of exclusive content – starting with buying and then creating original
programming – was revolutionary. Although it was attacked first, Netflix proved that it
could produce its shows at a lower cost and then distribute them in a way that satisfied
consumers. In addition, Netflix saved money by not having to sell advertising vertically
because it did not rely on advertising to run, and viewers got an ad-free experience.
Content is now produced, shared, and ultimately consumed in a completely different way.
Its ripple effect is forcing other sectors to adapt as well. Every media outlet now has a
website that displays its content, unlike just a few years ago. While it is impossible to
predict the future in a rapidly changing technology landscape, Netflix, at this point, is on
solid ground with a bright future even if disruption occurs. And that helps regardless of
the industry from a consumer perspective. Watching TV is becoming more convenient,
more affordable, and more accessible.

2.6.

2.6.1. Defining Organizational Culture

A set of shared norms and value systems, organizational culture governs interactions
among members of an organization and between members of an organization and those
outside the organization. Organizational processes can be guided by cultural values even

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without strict control. Emphasizing important aspects of the goal, they can also inspire
members of the staff. Culture has a very powerful invisible influence. Whenever people
gather around the same goal, corporate culture is automatically developed. Combining
the ideas, energies, and perspectives of people in a community will automatically create
culture. Therefore, to achieve the success it has now, Netflix's organizational culture is
structured to suit a process of continuous and sustainable change of the company.

2.6.2. Netflix’s Organizational Culture

An “Unusual Employee Culture”, that what people call about Netflix organizational
culture, it is based on a core philosophy that prioritizes people. The company ensures that
its online business operations are profitable and efficient by meeting the requirements of
its human resources. This organizational structure helps determine the morale, efficiency,
and overall human resource development of the streaming company.

To support its expansion in the highly competitive on-demand digital video streaming
sector, the company uses its corporate culture to build resilience among its employees.
This organizational culture framework ensures the competitive advantage necessary for
Netflix’s business model, overall strategy, and aggressive growth plan, while also helping
the web platform be effective in executing its value proposition.

Using corporate culture, a company maintains a framework of core values, beliefs,

business philosophies, and behaviors that permeate the workforce and inspire each
employee to drive innovative ideas to grow the online business. For example, Netflix
promotes communication through corporate culture to improve the distribution of new
ideas across the company. This organizational structure helps the media streaming
company compete creatively. By using cultural cues, Netflix enhances its strategic
direction in this area. Netflix's corporate culture encourages its employees to explore new
ideas and approaches to achieve their work goals. This situation encourages
competitiveness with companies such as Apple, Amazon, Walmart, Disney, YouTube,
and HBO. Such a competitive environment forces Netflix to constantly seek business
improvements, including adopting corporate culture strategies, to make its online service
and original programming more appealing. Netflix's organizational culture provides a
strategic management tool for both corporate growth and competitive advantage.
The following define Netflix's company culture most importantly:

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 1. Independent decision-making (Autonomy)

2. Open, broad, and deliberate information sharing (Communication)

3. Extraordinary candidness (Attitude)

4. Focus on high effectiveness (Productivity and Effectiveness)

5. Rule avoidance (Rules and Organizational Rigidity)

Independent decision making adheres to Netflix’s organizational philosophy, “people

over process.” This quality of organizational culture helps the online company maximize
employee turnover, thus improving the effectiveness of strategic management and related
human resource development.

One element of Netflix’s corporate culture related to communication effectiveness is

open, broad, and intentional information sharing. The company uses its organizational
culture to enable effective and efficient information sharing, thus guiding management
projects and strategic decisions. Netflix’s flat corporate structure is consistent with this
element of organizational culture as it supports clear and effective communication across

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the company. This cultural trait encourages Netflix employees to freely share issues
related to their work, thus generating the best solutions.

The next organizational quality is extraordinary candidness. This remarkable openness is

not only related to information exchange but also to employees’ impressions of other
colleagues, Netflix, and the international market. Netflix’s human resource management
has policies and initiatives that aim to inspire employees to adopt this approach in their
social relationships at work, thus addressing this feature of corporate culture.

Netflix Inc. emphasizes high productivity and work efficiency through initiatives related
to corporate culture, which are oriented towards high performance. This cultural quality
is related to organizational initiatives aimed at realizing Netflix’s vision and mission
statement, motivating human resources to achieve the level of productivity necessary for
long-term success in the online entertainment industry. Furthermore, operations
management at Netflix Inc. depends on how this feature of organizational culture creates
operational efficiency and performance.

Rule avoidance is a distinguishing feature of Netflix’s business approach. This cultural

quality stems from the belief that rules cause rigidity in the online company, thereby
reducing its ability to respond to changes in the market. In this business analysis case,
Netflix Inc. uses its organizational culture to establish and maintain its ability to adapt to
changing times.

This organizational structure enables Netflix's human resources to be adaptable and

responsive to industry issues. The desired behavioral outcomes of this corporate culture
relate to the operations of the video-on-demand streaming company. For example,
employees are motivated to come up with ideas to improve the fit between Netflix's
service and consumer trends. In terms of strategic planning, the organizational culture
enables the streaming company to be capable of implementing tactics and strategies by
using the creativity of its human resources to drive operational improvements. Overall,
Netflix maintains a corporate culture that supports flexibility, innovation, and
responsiveness to market needs as well as sustainable business change.

2.7. Future changes

2.7.1. New Ad Tech

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Looking ahead, by the end of 2025 Netflix revealed it will have an in-house ad tech
platform. The platform will give advertisers fresh means of purchase, fresh ideas to use,
and fresh approaches of assessing impact. "Bringing our ad tech in-house will let us drive
ad planning with the same degree of excellence that has made Netflix the leader in
streaming technology today," Reinhard remarked. Along with Microsoft as a main
programmatic partner, Netflix will also increase its purchasing power this summer to
include The Trade Desk, Google Display & Video 360, and Magnite.

These developments are meant to make Netflix even more outstanding for consumers,
therefore enhancing their experience. Therefore, the business does extensive customer
research to make sure it is giving its members superior possibilities and acquiring a
competitive edge.

2.7.2. Live sports entertainment is coming to Netflix.

Due mostly to profitable partnerships that have kept many of the largest sports teams
mostly on traditional network television, sports programming remains one of the key
blind spots for streaming services. But this is gradually beginning to change; Max
presently broadcasts a few NBA games and the 2024 Super Bowl on Paramount+.

Following its January 2024 announcement that it had bought the exclusive rights to
WWE's main weekly show, "Monday Night Raw," Netflix is now entering live sports,
more precisely sports entertainment. The streaming service has changed with this
addition to Netflix's portfolio. Along with its somewhat new advertising-based strategy,
Netflix is implementing major adjustments that will let the streaming service approach
one step closer to the conventional TV model.

https://jobs.netflix.com/culture

https://timesofindia.indiatimes.com/technology/tech-news/netflix-is-testing-this-biggest-
change-in-10-years-how-it-will-change-what-you-see-on-netflix/articleshow/
110776444.cms

https://wrappedagency.co.uk/blog/the-netflix-effect-8-ways-netflix-is-impacting-society/

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