DCM #1

Your client Netflix, Inc. (NASDAQ: NFLX) is the largest international
integrated communications provider. The company offers on-demand
Internet streaming media available to viewers in North and South
America, the Caribbean, and parts of Europe (Denmark, Finland,
Ireland, the Netherlands, Norway, Sweden, and the United Kingdom), and
of flat rate DVD-by-mail in the United States, where mailed DVDs are
sent via Permit Reply Mail. The company was established in 1997 and is
headquartered in Los Gatos, California. It started its
subscription-based digital distribution service in 1999, and by 2009
it was offering a collection of 100,000 titles on DVD and had
surpassed 10 million subscribers.

Recently, Netflix is looking at ways to retain existing customers and
gain new customers by increasing their bandwidth for video content
delivery. They have rolled the new technology out to 5 pilot cities in
the U.S. They started this initiative to address three consumer
trends:

Time shifting (e.g. Tivo)
Location Shifting (e.g. Slingbox)
Consumer streamed video content

Your consulting firm has been retained by the CEO of Netflix to assess
the effectiveness of the initiative. Specifically, you're asked to
address the following five questions:

What factors would you consider to assess the client's strategy?
How the trends will affect that strategy?
What analysis would you do?
What data would you collect?
Other factors to consider?

How would you approach this case?

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