Financial Analysis of Netflix

Financial Analysis of Netflix Essay example
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Name: Instructor’s Name: Course: Date of Submission: Netflix Headquartered in California, Netflix is currently the world’s leading provider of movies and television on the internet. Founded in 1997, Netflix today has over 30 million subscribers in over 10 countries (Netflix, 2012).


In 1999, monthly subscriptions model was introduced and the reputation of the firm grew as a flat- fee rental with no due dates and late fee. Netflix has to its credit the personalized movie recommendation system which suggests choices to users based on their previous purchases. Also mentionable is the fact that Netflix user base has increased every year from the date its conception by over 50% from past years till 2005. After 2005, the number of subscribers continued to increase but at lower rates. (Netflix, 2012) Netflix also partnered with certain electronics companies to make streaming possible on the PS3, TVs with internet connections, Xbox 360, Apple iPhones, iPads, iPods and other internet connected devices. (Netflix, 2012) Researches showed that in 2011, 61% of the digital video market clintele belongs to Netflix. (Stambar, 2011) in 2011, Netflix is the highest revenue earner in the United States. (Frankel, 2012) This data clearly shows that as of right now, Netflix is a market leader. ...
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