netflix-vision-statement-mission-statement

Netflix Mission Statement and Vision Statement In A Nutshell

Netflix’s core mission, strategy, and vision are that of “improving its members’ experience by expanding the streaming content with a focus on a programming mix of content that delights members and attracts new members.”

AspectHow Netflix Achieves ItAnalysis & ImplicationsAdvantages
Mission & Strategy– Focuses on expanding streaming content to enhance user experience.– Prioritizes user satisfaction and attracting new members.– Rapid growth and a large subscriber base.
– Invests in original content creation and binge-worthy releases.– Pioneers binge-watching culture, driving subscriber engagement.– Strong content library and market position.
Business Model– Offers subscription-based plans with varying features.– Generates substantial revenue and profit through subscriptions.– Steady income stream and scalability.
Financial Performance– Achieves profitability but has negative cash flows due to content investment.– Balances content creation and profitability.– Ability to invest in high-quality content.
Core Values– Values include judgment, communication, curiosity, courage, passion, selflessness, innovation, inclusion, integrity, and impact.– Promotes a culture of trust, autonomy, and accountability.– Attracts talent and fosters innovation.
Highly Aligned, Loosely Coupled– Emphasizes alignment on strategy and trusting employees for tactics.– Encourages agility, innovation, and efficient decision-making.– Maintains strategic focus while allowing flexibility.

Netflix core strategy and mission

As Netflix highlighted in its 2019 annual report:

Our core strategy is to grow our streaming membership business globally within the parameters of our operating margin target. We are continuously improving our members’ experience by expanding our streaming content with a focus on a programming mix of content that delights our members and attracts new members. In addition, we are continuously enhancing our user interface and extending our streaming service to more internet-connected screens. Our members can download a selection of titles for offline viewing.

netflix-swot-analysis

Netflix is among the most popular streaming platforms, with a subscription-based business model. The brand, platform, and content are strengths.

The volatility of content licensing and production used to be weaknesses, yet Netflix invested substantial resources in developing its own content:

binge-watching

The Netflix content, and the way it delivered it became so addicting to members that a new term would be made popular by how Netflix distributed the content all in batches, without pacing it: binge-watching.

Indeed, that is the practice of watching TV series all at once. In a speech at the Edinburgh Television Festival in 2013, Kevin Spacey said: “If they want to binge then we should let them binge.” This new content format would be popularized by Netflix, launching its TV series all at once.

netflix-business-model
Netflix is a subscription-based business model making money with three simple plans: basic, standard, and premium, giving access to stream series, movies, and shows. Leveraging on a streaming platform, Netflix generated over $29.6 billion in 2021, with an operating income of over $6 billion and a net income of over $5 billion. Starting in 2013, Netflix started to develop its own content under the Netflix Originals brand, which today represents the most important strategic asset for the company that, in 2022, counted almost 223 million paying members worldwide.

Netflix makes money with three simple plans:

  • Basic,
  • Standard,
  • And premium,

Those subscriptions give access to stream series, movies, and shows. The company is profitable, yet it runs on negative cash flows due to upfront cash paid for content licensing and original content production.

is-netflix-profitable
Netflix is a profitable company, which almost $4.5 billion in net profits in 2022, slowing down compared to over $5 billion in earnings for 2021.

Netflix is a profitable company. It generated over $1.2 billion in 2018, a 116% increase compared to 2017, primarily driven by substantial growth in paid memberships.

However, Netflix has negative cash flows as it invests massively on content license agreements and original content.

Netflix Values

As highlighted, on the Netflix career site its core values are:

  • Judgment
  • Communication
  • Curiosity
  • Courage
  • Passion
  • Selflessness
  • Innovation
  • Inclusion
  • Integrity
  • Impact

This translates in five core actions:

  1. Encourage independent decision-making by employees
  2. Share information openly, broadly, and deliberately
  3. Are extraordinarily candid with each other
  4. Keep only our highly effective people
  5. Avoid rules

Highly Aligned, Loosely Coupled

We spend lots of time debating strategy together, and then trust each other to execute on tactics without prior approvals. Often, two groups working on the same goals won’t know of, or have approval over, their peer activities. If, later, the activities don’t seem right, we have a candid discussion. We may find that the strategy was too vague or the tactics were not aligned with the agreed strategy. And we discuss generally how we can do better in the future.

The motto “highly aligned, loosely coupled” is in line with Netflix way to keep a startup mindset even though the company has scaled at the size of a tech giant.

Key Highlights

  • Mission and Strategy: Netflix’s core mission and strategy are focused on “improving its members’ experience by expanding the streaming content with a focus on a programming mix of content that delights members and attracts new members.” This involves continuously enhancing the streaming content library, user interface, and extending the service to more internet-connected screens.
  • Content Creation: Netflix has invested significantly in creating its own content, popularizing the concept of binge-watching by releasing entire seasons of TV series at once. This approach has led to the success of Netflix Originals, which represents a strategic asset for the company.
  • Subscription-Based Model: Netflix operates on a subscription-based business model, offering three plans: Basic, Standard, and Premium, giving subscribers access to a wide range of series, movies, and shows.
  • Financial Performance: Netflix generated over $29.6 billion in revenue in 2021, with an operating income of over $6 billion and a net income of over $5 billion. The company is profitable but has negative cash flows due to investments in content licensing and original content production.
  • Core Values: Netflix’s core values include judgment, communication, curiosity, courage, passion, selflessness, innovation, inclusion, integrity, and impact. These values emphasize independent decision-making, open communication, and trust among employees.
  • Highly Aligned, Loosely Coupled: Netflix follows a philosophy of being “highly aligned, loosely coupled.” This means that while the company spends time debating strategy collaboratively, it trusts its employees to execute tactics without prior approvals. This approach allows for agility and innovation while maintaining alignment with overarching goals.

Read Next: Netflix Business Model, Netflix SWOT, Netflix Content Strategy, Netflix Profitability, Mission Statement Examples

More on Netflix Business Model

Netflix Business Model

netflix-business-model
Netflix is a subscription-based business model making money with three simple plans: basic, standard, and premium, giving access to stream series, movies, and shows. Leveraging on a streaming platform, Netflix generated over $29.6 billion in 2021, with an operating income of over $6 billion and a net income of over $5 billion. Starting in 2013, Netflix started to develop its own content under the Netflix Originals brand, which today represents the most important strategic asset for the company that, in 2022, counted almost 223 million paying members worldwide.

Binge-Watching

binge-watching
Binge-watching is the practice of watching TV series all at once. In a speech at the Edinburgh Television Festival in 2013, Kevin Spacey said: “If they want to binge then we should let them binge.” This new content format would be popularized by Netflix, launching its TV series all at once.

Coopetition

coopetition
Coopetition describes a recently modern phenomenon where organizations both compete and cooperate, which is also known as cooperative competition. A recent example is how the Netflix streaming platform has been among the major customers of Amazon AWS cloud infrastructure, while Amazon Prime has been among the competitors of the Netflix Prime content platform.

Platform Expansion Theory

netflix-market-expansion

Netflix SWOT Analysis

netflix-swot-analysis
Netflix is among the most popular streaming platforms, with a subscription-based business model. The brand, platform, and content are strengths. The volatility of content licensing and production are weaknesses. The streaming market is a potential blue ocean. The inability to attract and retain premium members and its fixed long-term costs threaten its business model.

Is Netflix Profitable

is-netflix-profitable
Netflix is a profitable company, which almost $4.5 billion in net profits in 2022, slowing down compared to over $5 billion in earnings for 2021.

Who Owns Netflix?

who-owns-netflix
Netflix’s largest individual shareholder is Reed Hastings, co-founder, and CEO of the company, with a 1.7% stake, valued at over $1.8 billion in 2022. Netflix runs a subscription-based business model that generated $29.6 billion in revenues, and it had over 221 million global members in 2021. Netflix’s business model runs only premium content on its platform, driven by its Netflix Originals shows. Netflix is also building an ad-supported version.

Netflix Employees

netflix-employees
By 2022, Netflix had 12,800 employees across the world, compared to 11,300 employees in 2021.

Netflix Subscribers

netflix-subscribers
In 2022, Netflix had 230 million paid subscribers, a growth compared to the almost 222 million paid subscribers in 2021.

Netflix Revenue

netflix-revenues
Netflix generated over $31.6 billion in revenue in 2022, compared to $29.7 billion in 2021. Netflix was profitable in 2022, as it generated almost $4.5 billion in profits.

Netflix Revenue Per Subscriber

netflix-revenue-per-subscriber
In 2022, Netflix generated over $141 per subscriber yearly, on average, compared to $140 in 2021.

Netflix Revenue Per Employee

netflix-revenue-per-employee
In 2022, Netflix generated over $2.4 million in revenue per employee, compared to $2.6 million in 2021.

Netflix Subscribers Per Country

netflix-subscribers-per-country
Netflix had over 74 million paying members in US & Canada, over 76 million in the EMEA region, almost 42 million in the LATAM region, and 38 million in the APAC region.

Netflix Revenue Per Subscriber In Each Geography

Netflix Average Monthly Revenue Per Subscriber
The most significant geography in terms of average monthly revenue per subscriber in 2022 was US & Canada, with $15.8, compared to $10.99 in the EMEA region and $8.50 in APAC and LATAM.

Disney vs. Netflix

disney-vs-netflix
In 2022, The Walt Disney Company’s total paid subscriber base was larger than Netlfix, with over 235 million paid members, compared with Netflix’s over 230 million members. However, Disney’s offering is fragmented among Disney+, ESPN+, and Hulu, compared with Netflix, which has a single offering.

Read Also: Netflix Business Model, Netflix Content Strategy, Netflix SWOT Analysis, Coopetition, Is Netflix Profitable.

Mission Statement Case Studies

Adidas Mission Statement

adidas-mission-statement
Adidas’ mission is “To be the best sports brand in the world.” Adidas AG is a German multinational initially founded in 1924 by Adolf Dassler who developed spiked running shoes out of his mother’s house. Today, the company is the largest sportswear producer in Europe and the second largest globally behind rival Nike.

Uber Mission Statement

uber-mission-statement
Uber’s mission statement is to ignite opportunity by setting the world in motion.

Tesla Mission Statement

tesla-vision-statement-mission-statement
Tesla’s vision is to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles,” while its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Tesla used a transitional business model as its ecosystem grows.

Amazon Mission Statement

amazon-vision-statement-mission-statement (1)
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

Apple Mission Statement

apple-mission-statement-vision-statement
Apple’s mission is “to bring the best user experience to its customers through its innovative hardware, software, and services.” And in a manifesto dated 2019 Tim Cook set the vision specified as “We believe that we are on the face of the earth to make great products and that’s not changing.”

Netflix Mission Statement

netflix-vision-statement-mission-statement
Netflix’s core mission, strategy, and vision are that of “improving its members’ experience by expanding the streaming content with a focus on a programming mix of content that delights members and attracts new members.”

Coca-Cola Mission Statement

coca-cola-vision-statement-mission-statement
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”

Starbucks Mission Statement

starbucks-mission-statement-vision-statement
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”

Microsoft Mission Statement

microsoft-mission-statement
Microsoft’s mission is to empower every person and every organization on the planet to achieve more. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.

Walmart Mission Statement

walmart-vision-statement-mission-statement
Walmart’smission can be summarized as “helping people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.

Nike Mission Statement

nike-vision-statement-mission-statement
Nike vision is “to bring inspiration and innovation to every athlete in the world.” While its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”

Google Mission Statement

google-vision-statement-mission-statement
Google mission statement is to “organize the world’s information and make it universally accessible and useful.” Its vision statement is to “provide an important service to the world-instantly delivering relevant information on virtually any topic.” In 2019, Sundar Pichai emphasized a renewed mission to allow people “to get things done!”

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