The Leading Source Of Original Research And Insights On Business Model Strategy, Digital & Tech Business Models
Who Owns Netflix?
Netflix‘s major individual shareholder is Reed Hastings, co-founder, and CEO of the company, with a 2.09% stake, valued at over $4 billion. Netflix is among the most valuable brands with its subscription-based business model and a streaming platform with over 193 million global members, as of Q2 2020. Netflix business model runs only premium content on its platform, driven by its Netflix Originals shows.
Netflix top shareholders
The list of Netflix top individual and institutional shareholders (Data Source: Netflix Financials).
More on 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. The company is profitable, yet it runs on negative cash flows due to upfront cash paid for content licensing and original content production.
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 describes a recently modern phenomenon where organizations both compete and cooperate, which is also known as cooperative competition. A recent example is how Netflix streaming platform has been among the major customers of Amazon AWS cloud infrastructure, while Amazon Prime has been among the competitors of Netflix Prime content platform.
Netflix is a streaming company, which revenues come from subscriptions of its streaming services. By Q2 2020, Netflix counted over 193 million subscribers. And in the first months of 2020, it made almost twelve billion in revenues.
Netflix is among the most popular streaming platforms, with a subscription-based businessmodel. The brand, platform, and content are strengths. The volatility of content licensing and production are weaknesses. The streaming market is a potential blue ocean. Inability to attract and retain premium members, and its fixed long-term costs are threats to its businessmodel.
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.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
Published by