Netflix - McGraw-Hill Introduction to Business

Netflix Stock Tanks after Drop in Subscribers

April 26, 2022

Netflix revolutionized the entertainment industry after the company launched its streaming service in 2007, creating an on-demand platform that was soon imitated by many competitors. Although Netflix still has the largest audience in the industry with 220 million subscribers, the company faces strong competition from services like Disney+, HBO Max, and many others. No longer the only game in town, over the years Netflix has spent big on original television series and movies in order to stand out from this Continue reading →

Entertainment, Marketing, Netflix, Streaming, Product Distribution, Food & Drink, Supply & Demand, Product Development, Promotions

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Cable Ratings Drop as Streaming Dominates Home Entertainment

November 11, 2021

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The September premiere of the latest season of American Crime Story generated tons of press for the Emmy-winning FX show, but unfortunately the network could not transform that media attention into viewership. Despite being one of the most acclaimed dramas in recent years, American Crime Story ranks 15th in the ratings and generates next to no chatter on social media. Of course, that’s likely because this television show only airs on TV: due to a previous agreement with Netflix, American Continue reading →

Product Distribution, Entertainment, Netflix, Streaming, Television, Marketing

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Millions of Cord-Cutters Got Rid of Cable TV in 2019

February 20, 2020

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Over the last few years, cable and satellite companies have lost tens of millions of subscribers who have grown tired of seeing their monthly rates steadily rise. In 2019 more than 5.5 million people “cut the cord” with large cable and satellite providers, a huge increase over last year’s loss of 3.2 million customers. As TV companies pay more and more to produce and acquire new programming, they will likely keep raising subscriber rates on an already strained consumer base. Continue reading →

Product Development, Entertainment, Pricing, Netflix, Streaming, Television, Product Distribution, Cable

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

More than 500 TV And Streaming Shows Aired Last Year

January 17, 2020

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2019 was the year that the so-called “streaming wars” got serious. Disney+ and Apple TV+ launched in an effort to compete against Netflix while established broadcasters like NBC and HBO announced that their streaming services would go live in mid-2020. As the streaming marketplace grew increasingly crowded, industry insiders worried that media companies were offering too much content to consumers. According to research by the cable network FX, these fears could prove to be true: last year a total of Continue reading →

Product Development, Entertainment, Netflix, Streaming, Disney, Marketing, Product Distribution, TV

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Streaming Services Pay Big Money for Classic Shows

September 20, 2019

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This week Netflix announced that it spent $500 million to acquire the streaming rights to Seinfeld, which broadcast its last episode way back in 1998. While it may seem strange to spend so much money on a decades-old show, Netflix is far from the only streaming service to splash cash on a classic sitcom. Along with paying $425 million for Friends, HBO Max also acquired the streaming rights to The Big Bang Theory for $1 billion. Meanwhile, NBC-Universal Continue reading →

Netflix, Streaming, Television, Marketing, Advertising, Product Distribution, Product Development, Entertainment

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Netflix Loses Subscribers after Increasing Prices

July 18, 2019

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Earlier this year, Netflix raised its monthly rates by 13 to 18 percent across its various subscription plans. According to experts, the streaming video platform increased prices in order to ease investors’ fears that it was taking on too much debt. Unfortunately for Netflix’s stakeholders, however, the company recently announced that this decision contributed to a drop in U.S. subscribers for the first time since its launch 12 years ago.

During the second quarter of 2019, Netflix lost 126,000 customers. Continue reading →

Netflix, Streaming, Television, Global, Entertainment, Pricing

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Bonus Chapter B: Technology and New Media

BroadwayHD Aims to Become Netflix for Theater

June 11, 2019

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On Sunday night CBS aired the 73rd Annual Tony Awards, one of the most important evenings in American theater. But while this prestigious ceremony has been compared to Broadway’s version of the Oscars, the Tonys don’t attract nearly as large of an audience as Hollywood’s big night. For instance, 30 million people watched the Academy Awards in February compared to just 6 million viewers for Sunday’s show. Although Broadway continues to enjoy strong box office sales, many theaters have had Continue reading →

Streaming, Entrepreneurship, Product Distribution, Broadway, Theater, Product Development, Entertainment, Netflix

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

New Coke Returns as Part of Netflix Promotion

June 4, 2019

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In the 1980s Coca-Cola was losing market share to its rival Pepsi at an alarming rate. Blind taste tests performed by Coke even showed that consumers seemed to prefer Pepsi’s sweeter flavor. So in 1985 the Atlanta-based company scrapped its classic formula in favor of a sugary but smooth cola that came to be known as “New Coke.” The change shocked soda lovers across the country, prompting boycotts and letter-writing campaigns that did significant damage to Coke’s brand image. After Continue reading →

Marketing, Branding, Promotions, Netflix, Coca-Cola, Crisis management, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion

Netflix Raises Prices as Streaming Market Gets Crowded

January 22, 2019

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When Netflix launched its video streaming platform in the late 2000s, all of the titles featured on the service came from other movie studios and production companies. If you boot up your account these days, though, most of the TV shows and films listed on the homepage are owned and produced by Netflix itself. Over the last few years the streaming giant has invested heavily to create its own content. By one estimate, Netflix spends more than $8 billion annually Continue reading →

Product Development, Licensing, Entertainment, Global, Pricing, Netflix, Streaming, Television, Product Distribution, Movies, Debt, Debt financing

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 18: Financial Management, Bonus Chapter B: Technology and New Media

Ratings Aren’t As Important to TV Networks These Days

October 2, 2018

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Over the next few weeks, a new crop of TV shows will premiere across the major networks. But not all of these shows will stay on the air for a full season. That’s because broadcasters have long used the fall as a testing ground for new programming. If a show premieres to high ratings and audience acclaim, network executives will likely order more episodes of it. If few people decide to tune in, however, a new show might last one Continue reading →

Television, Management, Product Distribution, Product Development, Entertainment, Netflix, Streaming

Chapter 1: Taking Risks and Making Profits, Chapter 7: Management & Leadership, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media