1. By: Douglas Huber, Adam Augusta, and Connor Badalich

2. Netflix Background
Netflix was founded August 29th, 1997 by Reed Hastings and Marc Randolph, currently the owner and CEO is Reed Hastings.
Headquartered in Los Gatos, California.
Entertainment company that specializes in streaming online media, on- demand video access, and at one point offered DVD by mail.
Doug

3. PESTLE Netflix Political
U.S has restrictions on certain countries such as North Korea and Syria.
Not very popular in China due to the Chinese government, the most populated country in the world. Content restrictions also have impacted the material streamed on Netflix.
Economical
Exchange rate is always fluctuating, can negatively impact revenues.
Increase in workforce.
Streaming domestically and cash outflow continues to increase.
Social
Big brand reputation, prides itself on ethical business standards and morality.
Giving away student scholarships and charities to aid challenged students.
Adam

4. PESTLE Netflix Continued
Technological
Not only focusing on video streaming quality but overall experience, as well as convenient payments.
The new thumbs up and thumbs down will improve the personalization of a consumer homescreen of streaming options.
Legal
Copyright infringements
Video piracy is a huge loss to the streaming and cinema industries.
Streaming on multiple devices.
Environmental
Wind Power
Adam

5. Porter’s Five Forces Analysis
Threat of New Entry: Medium
Low Entry barriers
Industry leader in online streaming
Customer loyalty is weak
Customer Rivalry: Medium- High
Many competitors
Few emerging market leaders, maintaining dominance
Buyer Power: High
Majority of revenue is from customer subscriptions
Threat of Substitutes: High
Alternative methods of receiving content
OnDemand, Purchasing of DVD’s, movie theaters.
Supplier Power: High
Suppliers own content that Netflix needs.
Licensing deals
Legal Issue
Connor

6. Industry Competitors Amazon Prime Video Twitter and Facebook
large content budget
Twitter and Facebook
looking into streaming sporting events
Google’s YouTube Red
subscription based and no advertisements
Hulu
on demand and some titles the day after air
Netflix is on top of the streaming industry. Their Netflix original programs help them keep dominance over their competitors. Amazon is the closest behind and could potentially overtake Netflix if they were able to produce more popular exclusives like “The Grand Tour”.
Connor

7. Recent Stock Performance
10/30/16 Price - $124.87
10/30/17 Price - $198.56
63% growth
Steady increase in stock price
Connor

8. Financial Statements in the Past 3 Years
Revenue
% of Growth
2014
$5.5 B
25.85%
2015
$6.78 B
23.16%
2016
$8.83 B
30.26%
Over the past 3 years Netflix has not recorded a loss in sales revenue, has grown on average around 26.4%.
Doug

9. Projected Stock
On December 8th, 2016, Netflix’s stock price was $ per share. If Netflix were to continue its current trend of 63% growth each year, the closing stock price on December 8th, 2017, would be $ per share.
$123.4 x 63% = $77.74
$ $ = $201.14
Doug

10. Future Analysis
Investors at NASDAQ believe that Netflix’s stock price will rise within the next year, after reaching an all-time high at $ per share
The past 3 years of revenue indicate that Netflix is continuously beating its previous year’s income. Increasing revenues at around 26.4% from 2014 to 2016, Netflix proves to be a strong and well established company
With revenues climbing and indication that Netflix’s 2017 revenues will be over $10 B, investors should feel safe taking stake in this company.
Connor