Swot Analysis Of Netflix

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Netflix’s business is currently organized into two segments: the USA and International. With those segments, it serves the movie and TV audience. It offers not only DVD rental service but also streaming service. According to NETFLIX (2017), “Netflix is the world’s leading internet entertainment service with over 109 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.” The DVD component of the business gives people a legal access to movies and…show more content…
Netflix allows single-subscriber accounts to be used simultaneously by multiple people, even on non-subscribers' computers can also log in to the service. There is a noticeable difference between web streaming and physical CD-ROM libraries, with CD-ROM providing more movie options, while Web-streaming databases have more Netflix original content. By producing high-quality video and film productions shot by professional agencies, Netflix would make a profit by charging users directly. Netflix's business model is very simple, with premium content to attract users to pay for subscription, in order to earn revenue. With this business model, the more users, the higher Netflix's rewards. Therefore, Netflix started to expand the international market long ago. Currently it has landed in 87 countries and regions around the world, overseas users close to 26…show more content…
Content assets are amortized over a period of 6 months to 5 years. Most of the content library is amortized on an accelerated basis. 90% of the amortization occurs within the first four years. Amortization methodology is applied. Content is accounting in balance sheet, income statement and cash flow statement. As for Streaming Content Obligations, they are including the costs that Netflix pays for acquisition, licensing and production of streaming content. Under some agreements (creative talent and employment agreements), an obligation for some of the production of content includes non-cancelable commitments. In order to obtain future titles, an obligation for the question and licensing of content is bringing on. For Q4, Netflix forecast global net adds on 6.30m vs. 7.05m in the year ago quarter. Netflix has been focused on the growing global operating margin as performed as its primary profitability metric for hitting its goal, 2020 US contribution margin, of 40% this past
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