Case Study

Netflix (C): The race to videostreaming (Cartoon case)

4 pages
March 2014
Reference: IMD-3-2277

This case is part of a series on Netflix. Case (A) discusses the company’s growth until July 2011. Case (B) tells the story of Netflix’s sharp share price decline after it announced it was splitting the business in two and increasing prices. This (C) part covers the years 2012/13, when Netflix found its way back to success. Seeing that the industry bottleneck was shifting from the channel (who can reach the viewers?) to the content (who owns the movie rights?), Netflix started to produce its own TV shows (e.g. House of Cards, Hemlock Grove). All its shows were highly successful and even won prestigious Emmy Awards in 2013. Unlike cable networks, Netflix made whole seasons available at once, allowing customers to binge-watch all the episodes. In September 2013, two years after its meltdown, the Netflix share price hit an all-time high. Learning objectives: This case illustrates a complete strategic turnaround, as the name of the game changed in 2011. The story is a starting point for discussing the concept of value constellations, business ecosystems, Porter’s five forces and strategic moves. It can also be used to teach co-opetition, whereby Netflix and Amazon or Netflix and Apple are both competitors and partners at the same time.

Learning Objective

Learning objectives: This case illustrates a complete strategic turnaround, as the name of the game changed in 2011. The story is a starting point for discussing the concept of value constellations, business ecosystems, Porter’s five forces and strategic

Keywords
Strategy, Internet, Film Entertainment, Innovation, Competitive Strategy
Settings
Northern America, United States of America
Netflix, Travel and Leisure, Entertainment, Media
2012-2013
Type
Published Sources
Copyright
© 2014
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications