Stage 1 Business Innovation
Task 2
Background
Netflix was founded in 1997 and originally served as a DVD delivery service. Today it now has over 139
million subscribers worldwide. Today it acts as a leading streaming service that allows its customers to
watch a wide variety of award-winning TV shows, movies, documentaries, and more on thousands of
internet-connected devices.
The Netflix model keeps evolving and changing the entertainment industry, and while it while it is still
the strongest contender to replace traditional TV, other providers could threaten its dominance. While
personal recommendations and word of mouth play a big role in choosing what to watch, Netflix has
yet to develop social features.
Research Goals
• Understand how people choose what to watch
• Determine how users watch tv/movies
• Learn Netflix's user demographics
• Understand the current role that social connections play with people's use of Netflix
• Understand any areas that may need improvement, pain points and needs that are not addressed in
the current Netflix app
• Understand the market and competitors’ strategy
• Understand if there is a relationship between a person's social life and Netflix
Assumptions
• Friends’ recommendations affect what users choose to watch
• Users have a hard time finding what to watch sometimes
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Methodologies
Secondary Research
• Market research- conduct literary review and internet research
• Competitive Analysis- analyze any competitors identified by the client and perform a competitor
analysis to understand which similar streaming services are competing for business in the industry.
1. Competitor Overview

What type of market is Netflix in? Explain your answer.
E.g., perfect competition, oligopoly market, monopoly market, or monopolistic competition.

Who are the main competitors?

What are their strengths and weaknesses?

What products/services do they offer?

How substitutable is the service/product on the market?

How are they positioned in the market?

What are their marketing strategies?
2. Market Share

What is the market share of each competitor?

How has their market share changed over time?

How does Netflix market share compare to your competitors?
5. Pricing
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
What are Netflix competitor's pricing strategies?

How does their pricing compare to Netflix?

What value do they offer for their price?

Are there opportunities for Netflix to adjust pricing to be more competitive?

What is the service/product price elasticity of demand?
Target Audience & Consumer Behaviour
a) Target Audience
Who is Netflix competitor's target audience?
How do they reach their target audience?
How does their messaging and branding appeal to their target audience?
How does their target audience compare to Netflix?
b) Consumer Behaviour
• Why do people watch TV/movies?
• How often do people use streaming services?
• How do people decide what they are interested in watching?
• How do people decide what to select to watch on Netflix?
• What frustrations do people exhibit when using Netflix?
• What roles do people's friends/family/social networks play in choosing what to watch?
• How do people currently recommend or share show with others?
• What current options does Netflix have for sharing content if at all?
Methodologies
Primary Research
• Questionnaires- To gather quantitative data about users and behaviour. An online
questionnaire will be distributed to 15 target participants.
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