The business model of Netflix with Netflix revenue growth

Netflix started as a movie CD/DVD rental business in the year 1997 by Reed Hastings. But, who knows that this small business will turn into a successful media and entertainment company which will be recognized worldwide. Its global growth proved a big factor behind its tremendous success.


The business model of Netflix with Netflix revenue growth


And today we will review all the factors related to the business model of Netflix with Netflix revenue growth. How this DVD rental company which was situated in the USA expanded its business model and taste the remarkable heights of success.

This reading is all about the business model of Netflix that will cover its growth strategy, working techniques, global reach, and the Netflix revenue growth strategy.


History of Netflix

As read above, Netflix begins its journey as a DVD rental service company in the US. And with the passage of time, the company tried to modify and advance its offerings. Reed Hasting introduced a DVD subscription model for the customers in which their customers can enjoy unlimited movies and shows for just $16/month.


And after the launch of this subscription plan for Netflix, the company receives a large number of orders in a short span of time. It happened just because their strategy was futuristic and unique. Getting valuable customer support does not mean that the company is earning billions but still, the business model of Netflix with Netflix revenue growth was facing ups and downs.


And to initiate a long term-growth, Netflix decided to partner with Blockbuster but failed. As Blockbuster decline their offer without any valid reason. Netflix did not lose its hope but keep on adding innovation at its services. And by 2003 it reached to 1million subscribers for its services.


Seeing DVD subscription as a growing business Blockbuster also jumped into the same service line but Netflix beat that company by adding more innovation by launching the first-ever video streaming network by 2007 and build as a recognized company for their service.


By 2010, this video streaming company fasten its growth by stepping inside international boundaries and their international journey begins from Canada. It is a big achievement for the Netflix business model, which was serving only the USA by 2010, and by 2015 it expanded its network in more than 50 countries. And now serving 190 countries worldwide.

The business model of Netflix

Now, moving on to our main topic followed by the business model of Netflix with Netflix revenue growth. Let us discuss some important factors that helped this company at achieving remarkable growth and success-


business model of Netflix



Expanding business internationally- After getting a great response from its video streaming services of movies in its domestic market. The company took the right move by expanding its reach globally. Another good decision was to test international exposure by initially introducing its services in the neighboring country i.e Canada.

Working in Canada Netflix learned about the procedures and conditions which are required to fulfill while serving internationally. And further, expand its reach by joining hands with most of the countries in the world.

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How does Netflix get successful worldwide?


Capturing a large number of audiences- Netflix provides a very convenient service to its customers all over the globe. By not only giving them a home friendly streaming of videos and movies in TV's but also offers a very supportive interface in mobile phones. It is also improving its services by streaming in more languages and providing supportive subtitles that a viewer wants.



Building collaboration with service providers- Although the Netflix revenue growth is increasing but still it is at a great pace of building relationships with several companies such as mobile phone companies, TV operators, and various media partners for expanding and familiarizing its brand name among a large number of audience.

Although being a top video streaming platform Netflix is facing competition from various players present in the market. But, it is pushing hard to give a great experience to its subscribers.



Innovation (a key to success)- It is true that innovation leads your products and services above from the others. The Business model of Netflix was futuristic but innovative. They come up with an innovative idea of delivering videos online on our mobile phones and TVs.

When the other players were thinking for an amazing idea, Netflix got successful at launching original content by acquiring independent creators or streaming in-house videos. It invested in various series, shows, and unseen television movies first at their platform.



Netflix revenue growth

Before moving on with the Netflix revenue growth, knowing a bit about its earning model would be very friendly at remembering the numbers. Their earning are mainly generated from the attractive subscription plans that it offers to the viewers.


Netflix revenue growth


Although introducing the video streaming network worldwide, the business reaches a declining stage after 3-4 yrs. So, they decided to come up with their own original video series that boost a large number of subscribers for Netflix. At last, a large subscription means good revenue growth.


And for giving a more advanced experience to their customers, it involves three subunits into its subscription model. These sub-units are known as basic, standard, and premium. They charge different amount from the users as per their subscribed plan. The best part is that now Netflix has more than 130 million subscribers worldwide.


The business model of Netflix with Netflix revenue growth is rapidly increasing worldwide. But, this does not mean that its expenses are constant every year. As with the increase in Netflix revenue growth, the expenses are rushing swiftly too.


Take away

Netflix has worked really hard to achieve success in the world on media service providers and video streaming offerings. The company is still striving hard to increase its number of subscribers.


In this reading, we learned about the business model of Netflix with Netflix revenue growth that further sub-divided as a business model of Netflix and Netflix revenue growth. Do write your valuable comment.

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