1. WANG CHENG Wen Gubatova Hu YiNG patrick Scott CaLEB Esmira Michael
TIANG
YiNG

2. TV Show, Movie. Subscribe Monthly. Every Device.

3. REVENUE Billion BANKRUPTCY
Blockbuster, Inc. - Annual Report
Netflix, Inc. - Annual Report

4. SUBSCRIBERS
40 million

5. What’s Next?

6. Big Data!
Start. Stop. Resume. Good. Bad. Devices. the Social Network. Kevin Spacey. David Fincher. House of Card(BBC Ver.)

7. of CARDS HOUSE Wen YiNG Hu CHENG Gubatova WANG 改Netflix Vers. CaLEB
TIANG
YiNG
of CARDS
Michael Hu
Scott
CHENG
Esmira
Gubatova
patrick
WANG
改Netflix Vers.

8. NEW SERVICE STRATEGY MATRIX FOR NETFLIX
OFFERINGS
MARKETS
CURRENT CUSTOMERS
NEW CUSTOMERS
Instant streaming service
Can choose another language
Discover Netflix
Social networking
This feature allows them to interact with friends who were also members
Could see movie recommendations from all members
Instant streaming service (expand it's services into 43 countries)
Could see movie recommendations from all members (if they don't have any friends yet)

9. SERVICE BLUEPRINT FOR NETFLIX CUSTOMERS ACTIONS Line of interaction
Apply for
to be members
Watching movie
process
Comparing
movies
Recommendation
and voting
Payable
Ranking
Line of interaction
EMPLOYEE ACTIONS
(VISIBLE)
Install set-top-box
for customers
Keep date
Combine data
Make the best movie
Line of visibility
EMPLOYEE ACTIONS
(INVISIBLE)
Collect data
Combine together
Make a decision
Line of internal interaction
SUPPORT
PROCESS
Transfer payment (bank)
Maintain device and network
Post office

10. Recommendation Algorithm

11. Recommendation Algorithm

12. Paradigm Shift
Heliocentrism
Geocentric model

13. Service Gap Model

14. 2. HOWs:Engineering Characteristics
4. Relationship between WHATs and HOWs
1. WHATs:Customer requirements
5. Prioritized customer requirements
6. Prioritized engineering characteristic
3. Interrelationship matrix

15. GENERATE ENGINEERING SPECIFICATIONS: HOW WILL THE CUSTOMERS’ REQUIREMENTS BE MET?
A good story……………….Politics type
Good actors………………..Kevin Spacey
A good director…………….David Fincher
Good timing to watch……….Anytime(Online)
Sensory stimulation………..Limited

16. RELATE CUSTOMERS’ REQUIREMENTS TO ENGINEERING SPECIFICATIONS: HOWS MEASURE WHATS?

17. IDENTIFY AND EVALUATE THE COMPETITION: HOW SATISFIED IS THE CUSTOMER NOW?
For instance, we assumed the ranking as comparing with the movie “Lincoln” :
OUR FILM
LINCOLN
A GOOD STORY
Win
GOOD ACTORS
A GOOD DIRECTOR
GOOD TIMING TO WATCH
SENSORY STIMULATION

18. IDENTIFY RELATIONSHIPS BETWEEN ENGINEERING REQUIREMENTS: HOW ARE THE HOWS DEPENDENT ON EACH OTHER?

19. SET ENGINEERING TARGETS: HOW MUCH IS GOOD ENOUGH?

20. TARGET: REINFORCE POLITICS PLOTS

21. DOES NETFLIX’S OPERATING STRATEGY WORK IN EASTERN?
Technology in Eastern is not advance as in US, the companies cannot handle “big data”.
People are more likely watch English movies.
It needs to spend a lot of money on the famous director and actors.
The customer’s habit between western and eastern are different.
Other government limitations(Ex:Copyright).

22. THAT NETFLIX HAS TO FACE?
WHAT ARE THE PROBLEMS
THAT NETFLIX HAS TO FACE?
The sources of movie.
Market demand.

23. WHAT IS NETFLIX’S NEXT STEP?
Facing the strong competitors which like Wal-mart provided DVD renting and Amazon and Apple’s online download service, Netflix is going to provide movies download service too.
Faster and easier
Netflix is keep improving their services and systems, and hope to have higher quality services and more movies provide to customers.

24. Q&A