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Netflix Business Model (2023) | How does Netflix make money

Last Updated: Feb 3, 2023

Company: Netflix, Inc. Co-CEO:  Ted Sarandos & Greg Peters Year founded: 1997 Headquarter:  Los Gatos, USA Type: Public Ticker Symbol: NFLX (NASDAQ) Market Cap (Feb 2023):  $ 162.95 Billion Annual Revenue(FY22): $ 31.6 Billion Profit |Net income (FY22): $ 4.49 Billion

Products & Services:  Netflix Official Website | Monthly Subscription Plans | Video Recommendation-Algorithm System Offerings Streaming Options Domestic (featured tool) | International Streaming Options and Features Competitors:   Amazon Prime Video | HULU | YouTube | Direct TV | Sony PlayStation’s Vue | HBO | Sling TV | HotStar | Disney + | Apple TV+

Table of Contents

Introduction to Netflix, Inc.

Netflix, Inc . happens to be one of the most successful entertainment mass-media-companies of all times. Netflix, Inc. originally began its inception in 1998 by providing services to customers through means of mailing out physical copies of movies, shows, video games and other forms of media through standard mailing system.

Through its successful startup and the rapid changes that technology introduced over time, Netflix converted its business model . They went from physical copies handouts to allowing customers streaming their favorite contents from the comfort of their own convenience.

Today, the platform has advanced to streaming technologies that have elevated and improved Netflix’s overall business structure and revenue. The platform provides its viewers the ability to stream and watch a variety of TV shows, movies, documentaries and much more, through means of using a software application.

Since Netflix converted to streaming, it is the world’s ninth-largest internet company by revenue , ranging its presence at a global scale. The following is a compilation that comprises specifications of Netflix’s business canvas model and its core operations.

Business Model Canvas of Netflix

1. Netflix’s Key Partners

Netflix has built more than 35+ partners across the media business. Netflix today has millions of different types of genres for subscribers to select from and enjoy watching. 

• Built alliances with Smart TV companies like LG and Sony for new emerging markets and several other aspects.
• Netflix has set an alliance with Wii , X-Box , PlayStation and many other brands in the gaming industry. Netflix built partnerships to provide and cater its “ gamer-clients ” with an entertainment video game.
• Netflix joined forces and partnered with Dish, Tivo and other TV network companies.
• Netflix crucial phase of converting the business from mail-in-system to streaming, Netflix established a partnership with Apple , Android, and Microsoft .
• Finally, Netflix joined the network and big data providers like Google and Amazon . (Amazon was accompanied to promote Netflix listings and subscription options)
• Netflix recently partnered with Samsung to further integrate its streaming service with Galaxy smartphones. In exchange, Samsung users will benefit from Netflix’s original shows and special bonus content.
• To expand in West Africa more aggressively, Netflix partnered with Nigerian filmmaker Mo Abudu , the owner of Ebony Life TV. This partnership will enable Netflix to create new content targeting consumers in West African nations.

2. Netflix’s Value Propositions

Netflix strategizes methods and aims to provide the best customer experience by deploying valuable propositions.

Here are a few of what Netflix idolizes:

• Users can stream 24-7, minus the ads !
• View shows & movies in high-definition
• Stream content conveniently anywhere without going to a DVD store or theatre
• Get unlimited access to TV shows and movies
• Access to exclusive Netflix’s original movies or shows
• New signups can avail a 30-day free trial ( 1 month free of services )
• Contract-oriented but can cancel at any time !
• Access locally-produced and culturally-relevant content
• Receive algorithmic recommendation for new items to watch
• Avoid commercials ads- Some people like looking at commercials and other advertisements and some people avoid them.
• At Netflix, users have the flexibility to either turn on notifications and suggestions or keep them switched off.
• Netflix “ user profiles ” gives leverage for users to personalize their user account and preferences. The User profiles allow the “admin-user” to modify, allow or ever restrict certain users
• Sharing accounts options is one of the rarest features a movie platform can provide. Sharing accounts feature on Netflix allows spouses, friends or even groups to share an account with specific filters and preferences already set.
• Netflix solves the issues with theaters and mainstream media that frustrated most consumers. The company promises to solve the problems of its target with four simple words – Watch Anywhere. Cancel Anytime .

3. Netflix’s Key Activities

• Hire and retain software and tech geeks
• Maintain and expand its platform on the website, Mobile apps, TV apps.
• Produce, acquire and license Netflix’s original content to expand its video library
• Develop its pricing strategy and subscription model to ensure affordability and new customer acquisition.
• Develop a roadmap to enter into the new market .
• Ensure great user recommendation to retain current customer base.
• Build and secure a partnership with Studios and content production house
• Negotiate the deals with Studios, Content providers and Movie production houses
• Comply with the laws (laws as per to State or Region/country), maintaining compliance to censorship , specifically for minors and children. Netflix has always promoted and operated within the boundaries of censorship.
• Supporting disadvantaged communities and other ideological issues that are important to its customers. 
• Building local communities and economies that support the development of its local original content .

4. Netflix’s Customer Segments

• The Netflix platform is designed to offer a vast collection of different types of genres for subscribers to select from. Their collection (movies or shows) are designed appropriately for
• Everyone, who is interested in watching movies, TV shows and documentaries – and honestly who isn’t?
• Although Netflix offers content for children and adults alike, Netflix aims to promote Family-friendly , educational and entertaining content to help capture the better interests of families.

5. Netflix’s Customer Relationships

Self-setup made easy.

• Netflix platform was originally designed to ensure that it is simple and easy to use.
• Developers of the Website ensured to associate elements and themes that serves and promotes friendliness and provides a self-setup

Exceptional Customer Experience

• Netflix provides customer services through means of the website portal, email inquiries and users have the option to reach a representative directly, by telephone and live chat.

Online Live Chat Services

• Users have the option to opt-in to a live chat session with a Netflix representative.
• Users can directly chat with a Netflix representative to ask questions and support related inquiries.
• Request for discounts and other special promotional deals that they may qualify or offer such user or subscriber.

Social media

• Channeling major advertisements, deals, and other promotional deals through Social media channels and other relative platforms to help gain the high attraction of customer and new sign up users conversions.
• Social media is also used to inform and update individuals that operate or are familiar with the Netflix platform. Such platforms may include Facebook , LinkedIn , Instagram, Twitter , Snapchat etc.

Netflix gift Cards

• Part of the subscription plan, all users will be geared to receive special promotional discounts and other gift cards to avail.

6. Netflix’s Key Resources

Software developers.

• Software developers at Netflix are at constant innovation
• Design and enhance to help create a better customer-user experience

Recommendation system (algorithm)

• Artificial intelligence and selection preference sequence technology helps developers design and build the recommendation algorithm system for its users.
• Some data are based on “new releases,” or internal data that identifies user watch selection and the most viewed.
• Provides users with relative results based off of frequent searches

7. Netflix’s Channels

Through Netflix’s channeling sequence, users and interested users can access Netflix platform from one or more of the following;

• Online streaming through the website
• Streaming through Mobile apps
• Streaming on TV Apps and Gaming consoles
• Mail delivery for DVDs

8. Netflix’s Cost Structure

• Major purchasing rights establishment (TV shows and movies)
• Cost of producing movies
• Cost for providing personalized recommendations, R&D and artificial intelligence
• Subscription maintenance cost
• Paid-Connection deal with Internet Service Provider (ISP) such as Comcast to stream Netflix data at high speed.
• Infrastructure (data centers) cost of streaming content
• DVDs and mail-related shipping costs
• Employee salary distribution (customer service, Engineers, etc.)

9. Netflix’s Revenue Streams

It wasn’t until 2007, when Netflix launched “streaming” services through Netflix subscription plans , that it attained significant revenue streams and additional revenues.  

• Monthly subscriptions fees with three different price options In US market (Basic – $8.99/month, Standard – $12.99/ month & Premium – $15.99/ month)
• Netflix has established a global presence with international streaming to expand its customer base.
• Upselling opportunities – Upgrade from Basic to Premium Plan etc.
• Money-making movie studio with Netflix original shows like fuller house, house of cards, etc.

How does Netflix Make Money?

Netflix was a platform which started as only offering an extensive collection of movies, shows and dramas (925 listings) through the mail-in-delivery system . It wasn’t till 2007 when Netflix has decided to convert their business structure from mail-in-system to streaming content based on subscriptions. Before launching online streaming in 2007, Netflix revenue on average summed at annually at around $997 million . 

Subscription-based Business Model

• Netflix has over 230 million members from over 190 countries (as of Dec 2022)
• In fiscal year 2022, Netflix generated  $31.6 billion annual revenue from both the United States and international regions.

Important partnerships

• One of the most influential tactics implemented was its ability to build alliances with a wide range of movie producers, filmmakers , writer, and animators to receive content and legally broadcasting the contents required aligning licenses.
• To make the Netflix platform and its streaming possible, setting the partnership between Internet Service provider was also crucially important.

Technology ( Monolithic architecture )

• Technology platforms allowed “streaming” accessibility to become convenient and unique and during their conversion year in 2007, not a lot of media companies offered such, which made the platform greatly attractive.

During the early year in 2000, Blockbuster was offered to purchase Netflix and all of its assets for only $50 million .

As of feb 2023, Netflix is worth $163   Billion in market cap value. Perhaps, it isn’t really about what a company sells, rather, it’s about how a company sells or promotes its products.

Through Netflix’s powerful technological tactics, innovating the accessibilities has helped to increase customer/user experience positively. Netflix implemented in several areas that helped to capture the global market. 

 References & more information

• Netflix Annual Report

Tell us what you think? Did you find this article interesting?                                                     Share your thoughts and experiences in the comments section below.

A management consultant and entrepreneur. S.K. Gupta understands how to create and implement business strategies. He is passionate about analyzing and writing about businesses.

11 comments

Cancel reply.

Informative article, exactly what I needed.

Informative article!

Thanks Umar, Happy reading !

Disney+ next?:)

really a good one

Thanks Luca !

Yes, artical was very informative. Thank you.

Kirby – Thank you for the great feedback, really appreciate it. Happy reading !!!

excellent insight

Great article! Where can I find the list of sources you used? Thank you!

The Primary source of the article is Netflix’s Annual report – you can find the link in the reference section. And for secondary sources, links are embedded within the article.

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Netflix: Business Model, SWOT Analysis, and Competitors 2023

Inside This Article

Netflix has become a household name in the streaming industry. Since its inception in 1997, it has revolutionized the way we consume media. In this blog post, we will delve into Netflix's business model, conduct a SWOT analysis, and explore its competitors in the year 2023. As the streaming industry continues to evolve, it's important to understand the strengths, weaknesses, opportunities, and threats facing the company, as well as the competition it faces in the market.

What you will learn:

• Who owns Netflix and the history of the company's ownership
• The mission statement of Netflix and how it guides the company's decisions
• How Netflix makes money through its subscription-based business model and other revenue streams
• A breakdown of Netflix's business model canvas, including its key partners, activities, and resources
• The major competitors of Netflix in the streaming industry and how they compare
• An analysis of Netflix's strengths, weaknesses, opportunities, and threats through a SWOT analysis.

Who owns Netflix?

Netflix is a publicly traded company, which means that it is owned by its shareholders. As of 2021, the top shareholders of Netflix are institutional investors, including Vanguard Group, BlackRock, and State Street Corporation.

The company was founded in 1997 by Reed Hastings and Marc Randolph, who owned a majority of the shares in the early years of the company. However, as Netflix grew and went public in 2002, ownership became more dispersed among shareholders.

Today, Hastings remains a major shareholder and serves as the co-CEO of the company. Other executives and board members, as well as employees, also hold shares in the company.

Despite the dispersed ownership structure, Netflix is known for its strong corporate culture and commitment to long-term growth. The company has been able to attract and retain top talent, and its stock price has consistently outperformed the broader market in recent years.

In summary, while Netflix is technically owned by its shareholders, the company's success is due in large part to the vision and leadership of its founders and executives. As the streaming industry continues to evolve, it will be interesting to see how Netflix adapts and continues to grow in the years to come.

What is the mission statement of Netflix?

Netflix is a popular streaming platform that has taken the world by storm. The company's mission statement is "To entertain the world." This simple statement speaks volumes about the company's approach to content creation and distribution. Netflix believes that entertainment is a fundamental part of human life and that it has the power to bring people together.

The company's mission statement is reflected in its content strategy. Netflix produces a wide range of original content, including movies, TV shows, and documentaries, that are designed to appeal to audiences from all walks of life. Whether you're a fan of action movies, romantic comedies, or science fiction, there's something for everyone on Netflix.

But Netflix's mission statement goes beyond just providing entertainment. The company is committed to creating a culture of inclusion and diversity. This is reflected in the shows and movies that it produces, which feature characters from a variety of backgrounds and experiences. Netflix also supports a number of initiatives aimed at promoting diversity in the entertainment industry.

Finally, Netflix's mission statement is focused on innovation. The company is constantly experimenting with new content formats and distribution methods in order to stay ahead of the curve. From interactive movies to choose-your-own-adventure shows, Netflix is always pushing the boundaries of what's possible in the world of entertainment.

In conclusion, Netflix's mission statement is simple but powerful. The company is dedicated to entertaining the world while promoting diversity and innovation. And judging by the millions of subscribers who tune in to watch their content every day, it's clear that they're doing something right.

How does Netflix make money?

Netflix is one of the most successful streaming services in the world, boasting over 208 million subscribers as of 2021. But how does the company make money?

Firstly, Netflix generates revenue through subscription fees. Users pay a monthly fee to access Netflix's vast library of TV shows, movies, and documentaries. This subscription model is the primary source of income for Netflix, with different subscription plans catering to different needs and budgets.

Secondly, Netflix makes money through licensing deals. The company licenses content from studios and networks to add to its library. This allows Netflix to offer a wide range of content to its subscribers without having to produce it themselves. However, licensing deals can be expensive, and Netflix has been investing more in producing its own content in recent years to reduce its reliance on licensed content.

Thirdly, Netflix makes money through merchandise sales. The company has created merchandise for some of its most popular shows, including Stranger Things, The Crown, and Narcos. This merchandise includes t-shirts, mugs, and other items, which fans can purchase on the Netflix website. This generates additional revenue for the company and helps to promote its shows.

Finally, Netflix also makes money through partnerships and collaborations. For example, the company has partnered with telecom operators to offer its services to their subscribers. Netflix has also collaborated with brands such as Coca-Cola, Nike, and Uber to promote its shows and increase its reach. These partnerships not only generate revenue for Netflix but also help to increase brand recognition and awareness.

In conclusion, Netflix's revenue streams include subscription fees, licensing deals, merchandise sales, and partnerships and collaborations. These diverse revenue streams have helped the company become one of the most successful streaming services in the world.

Netflix Business Model Canvas Explained

Netflix is a leading streaming platform that offers a wide range of movies, TV shows, and documentaries to its subscribers. The company's business model is based on a subscription-based model, which allows users to access its content library for a monthly fee. In this section, we will explore the different elements of the Netflix Business Model Canvas.

Key Partnerships

Netflix's key partnerships are with entertainment studios and production companies. The company has partnerships with major players in the entertainment industry such as Disney, Warner Bros, and Universal Pictures. These partnerships allow Netflix to acquire a wide range of content for its subscribers and maintain its position as a leading streaming platform.

Key Activities

Netflix's key activities include content acquisition, content production, and content distribution. The company invests heavily in content acquisition to ensure that it has a diverse and extensive content library for its subscribers. Additionally, Netflix invests in content production to create original content that is exclusive to the platform. Finally, the company focuses on content distribution to ensure that its content is accessible to subscribers worldwide.

Key Resources

Netflix's key resources include its content library, technology infrastructure, and human resources. The company's content library is its most valuable resource, and it invests heavily in acquiring and producing content to maintain its competitive position. Additionally, Netflix has a sophisticated technology infrastructure that enables it to deliver content seamlessly to its subscribers. Finally, the company's human resources are critical to its success, and it employs a talented team of professionals who are responsible for content acquisition, production, and distribution.

Value Proposition

Netflix's value proposition is its extensive content library, which offers subscribers a wide range of content to choose from. Additionally, the company's recommendation algorithm ensures that users are presented with content that is tailored to their preferences, enhancing the user experience. Finally, Netflix's subscription-based model offers users an affordable and flexible way to access its content library.

Customer Segments

Netflix's customer segments include individuals, families, and businesses. The company targets individuals who are interested in streaming movies and TV shows, families who want to access a wide range of content for their children, and businesses that use the platform for training and development purposes.

Revenue Streams

Netflix's revenue streams are primarily from subscription fees. The company offers a range of subscription plans that cater to different user needs, including basic, standard, and premium plans. Additionally, the company generates revenue from licensing its original content to other platforms and merchandise sales.

The Netflix Business Model Canvas highlights the key elements of the company's business model, including its key partnerships, activities, resources, value proposition, customer segments, and revenue streams. By focusing on these elements, Netflix has been able to build a successful streaming platform that has disrupted the entertainment industry and changed the way people consume content.

Which companies are the competitors of Netflix?

Netflix is a household name when it comes to entertainment, but it's not the only player in the game. Several other companies are vying for a piece of the streaming market share. Here are some of Netflix's main competitors:

Amazon Prime Video: Amazon's streaming service offers a vast collection of movies and TV shows, including popular original content like "The Marvelous Mrs. Maisel" and "The Boys." Like Netflix, Amazon Prime Video is available on multiple devices and offers offline viewing.

Hulu: Hulu is a joint venture between Disney, Fox, and NBCUniversal. It offers a mix of current and classic TV shows, as well as a growing collection of original content like "The Handmaid's Tale" and "Little Fires Everywhere." Hulu also offers a live TV option, which sets it apart from its competitors.

Disney+: Launched in late 2019, Disney+ has quickly become a major player in the streaming market. With its extensive catalog of classic Disney movies and TV shows, as well as new original content like "The Mandalorian" and "WandaVision," Disney+ is a must-have for families and Disney fans.

HBO Max: HBO Max is the streaming service from WarnerMedia, and it offers a mix of HBO content, including popular shows like "Game of Thrones" and "The Sopranos," as well as new original content like "The Flight Attendant" and "Mare of Easttown."

Apple TV+: Apple's streaming service launched in 2019 with a small but growing collection of original content, including "Ted Lasso" and "The Morning Show." Like its competitors, Apple TV+ is available on multiple devices and offers offline viewing.

While Netflix is still the king of streaming, these competitors are quickly catching up. As the market continues to evolve, it will be interesting to see how these companies continue to compete and differentiate themselves from one another.

Netflix SWOT Analysis

When it comes to analyzing the strengths, weaknesses, opportunities, and threats of Netflix, it is essential to consider the current landscape of the streaming industry. Here's a closer look at Netflix's SWOT analysis:

Original Content - Netflix has invested heavily in creating original content, which has helped them stand out from the competition.

Large User Base - With over 200 million subscribers worldwide, Netflix has a massive user base that gives it a significant advantage over other streaming services.

Convenience - With a vast library of content available to stream anytime, anywhere, Netflix has made it incredibly convenient for users to watch their favorite shows and movies.

Data-Driven Approach - Netflix uses data to understand their audience better, which allows them to create more targeted content and improve the user experience.

Weaknesses:

Dependence on Licensed Content - While Netflix has invested heavily in original content, it still relies heavily on licensed content from other studios, which can be expensive and may not always be available.

Price Increases - Netflix has raised its prices multiple times, which can lead to user churn if the value doesn't match the cost.

Limited International Reach - While Netflix is available in many countries, it still has limited reach in some regions, which can impact growth potential.

Opportunities:

International Expansion - Netflix can continue to expand its reach into new markets, which can help drive growth and increase revenue.

Partnerships - Netflix can partner with other companies to expand its content offerings and reach new audiences.

Vertical Integration - Netflix could explore vertical integration strategies, such as acquiring production studios or partnering with content distributors, to control costs and increase control over the content it offers.

Competition - Netflix faces intense competition from other streaming services, such as Amazon Prime Video, Disney+, and Hulu.

Piracy - The rise of illegal streaming and piracy can impact Netflix's revenue and user base.

Content Costs - As content costs continue to rise, it may become more challenging for Netflix to continue investing in new original content and licensed content.

Key Takeaways

• Netflix is owned by a mix of individual and institutional investors, with co-founder Reed Hastings owning the largest share.
• The mission statement of Netflix is to "give people the power to entertain themselves, anytime, anywhere."
• Netflix primarily makes money through subscription-based revenue from its streaming service, as well as DVD and Blu-ray rentals and sales.
• Netflix's business model canvas focuses on key activities such as content creation and acquisition, technology development, and customer acquisition and retention.
• Netflix's main competitors include Amazon Prime Video, Hulu, and traditional cable and satellite TV providers. A SWOT analysis of Netflix highlights its strengths in content creation and customer loyalty, but also identifies potential threats from new entrants in the streaming market and rising content costs.

In conclusion, Netflix is a streaming giant that has revolutionized the entertainment industry. The company was founded by Reed Hastings and Marc Randolph in 1997 and is currently owned by its shareholders. Netflix's mission statement is to provide an affordable and convenient way for people to access the world's best entertainment. The company generates revenue through subscription fees and has expanded its content offerings to include original programming. The Netflix Business Model Canvas illustrates how the company operates by creating value for customers and stakeholders. Netflix's competitors include other streaming services like Hulu, Amazon Prime Video, and Disney+. Finally, a SWOT analysis of Netflix highlights its strengths, weaknesses, opportunities, and threats in the current market. Overall, Netflix's success can be attributed to its innovative approach to content delivery and its ability to adapt to changing consumer demands.

What is Netflix SWOT analysis weakness?

High Dependence on Content Licensing: Netflix relies heavily on content licensing agreements with major media companies. This makes them vulnerable to potential changes in licensing costs and terms.

Threat from New Competitors: Netflix faces threats from new competitors such as Amazon Prime Video, HBO Now, YouTube Red, and Hulu. These companies have larger budgets and huge libraries of content, making it difficult for Netflix to compete.

Difficulty in Monetizing Original Content: It is difficult for Netflix to monetize its original content, as the company does not have its own streaming platform or advertising capabilities.

Limited International Presence: Netflix has a limited international presence since it is only available in a handful of countries. This limits its potential customer base and restricts its growth.

What are some of Netflix strengths and weaknesses?

• Wide selection of content and genres
• High-quality streaming technology
• User-friendly platform
• Strong branding and marketing
• Easy to access and use
• Competitive pricing
• Extensive library of titles
• Lack of live sports and news programming
• Lack of original content compared to competitors
• Limited library of titles in some regions
• Slow release of current content
• Limited international content library
• Limited advertising capabilities
• Difficulty customizing user profiles

What are the opportunities and threats of Netflix?

Expansion into new markets: Netflix has the potential to expand into new markets and increase its customer base.

Development of exclusive content: Netflix has the potential to develop exclusive content that customers can’t find anywhere else. This would help to increase customer loyalty.

Increase in subscriber base: Netflix has the potential to increase its subscriber base by offering more subscription options.

Increase in revenue: Netflix has the potential to increase its revenue by offering additional services such as advertising and subscription upgrades.

Increased competition: Netflix faces increased competition from other streaming services such as Hulu and Amazon Prime.

Piracy: Piracy is a major threat to Netflix as illegal downloads of content can reduce its viewership and revenue.

Price wars: Netflix may be forced to reduce its subscription prices in order to compete with other streaming services.

Technology changes: Technology changes such as the development of virtual reality could cause Netflix’s business model to become obsolete.

What are some of Netflix weaknesses?

Limited Content in Certain Countries: Netflix’s content selection varies from country to country due to regional licensing deals, meaning that certain countries may not have access to the same content as others.

Lack of Advertising: Netflix does not have any commercials or ads, which means that it does not have a dedicated advertising budget to promote its content.

High Competition: Netflix faces stiff competition from other streaming services such as Hulu, Amazon Prime Video, and Disney+, which are all competing for the same content and viewers.

Expensive Fees: Netflix has high subscription fees compared to other streaming services, which can be a barrier for some people.

Increased Piracy: As Netflix’s popularity grows, so does the potential for piracy, as users may be more likely to access content illegally if they don’t have a subscription to the service.

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Netflix Business Model (2024) | How Does Netflix Make Money

8 minutes read

Anyone who has access to online streaming platforms knows the existence of Netflix. Who would not when it’s one of the leading sites in the world today? If one takes a deeper look at Netflix, one would know its unique features and elements make it stand out.

For you to know how Netflix operations work, seeing the Netflix business model canvas might be beneficial. It’s a comprehensive visual illustration so you can understand Netflix better. You can bookmark this article or take some notes as you go along. It might inspire you as you plot your company’s business model. Continue reading to learn more.

A Brief History of Netflix

Netflix is a company established by Mac Rudolph and Reed Hastings in 1997. The name Netflix comes from a combination of ‘net,’ which means the internet, and ‘flix,’ which is a ‘flick’ variation, also an abbreviation for movies. The company started using the internet to offer movies on DVD rental services. With technological innovations over the years, Netflix transformed its business model. The company went from distributing physical copies to allowing customers to stream their favorite content through mobile phones, tablets, computers, and laptops.

Netflix’s video streaming service was introduced in 2007, with 1000 titles in its library. Initially, the streaming only worked on computers and Internet Explorer, with an 18-hour free monthly stream. At the end of 2007, the company gained 7.5 million subscribers.

Fast forward to 2016, when Netflix expanded globally to about 190 countries in 21 languages. Along the way, Netflix won Academy Awards for some of the company’s original productions. It took Netflix years to be a solid streaming service provider.

Today, one can trust Netflix to provide a vast range of content from movies, documentaries, television shows, and Netflix originals. While the competition is intense, Netflix can hold its position and even account for over a third of internet traffic during peak hours. If you’re one of Netflix’s subscribers, you know that the company imposes a monthly subscription plan giving access to streaming movies, series, and other content on the streaming platform.

Netflix Business Model Canvas

With this data, what does the business model canvas of Netflix look like? There are nine sections of the streaming platform’s business model. Each aspect is vital to understanding how Netflix works and in what areas it spends its budget.

Value Propositions of Netflix

Netflix’s value proposition focuses on providing engaging and fun digital content conveniently. Once you subscribe to Netflix, you can stream on-demand content without ad interruptions. Since the platform supports a wide range of devices like mobile phones, smart TVs, PCs, and gaming consoles, subscribers can enjoy streaming all content whenever and wherever.

Customer Segments of Netflix

The business model canvas of Netflix under the customer segments category has one entry: the ‘moviegoer.’ While this could also be true in specific aspects, the streaming service caters to many subscribers. Surely, those who subscribe to Netflix are into movies and other content.

Here is how Netflix categorizes its customers:

Micro segmentation: 2000 taste clusters which are identified through viewing histories.

Macro segmentation: 

• Demographics - individual, family, etc. 
• Gender and age brackets
• Geo-demographics - city vs. rural, country, region
• Languages spoken and its proficiency

Usage parameters: 

• Technology - screen size, device used, connection type, and speed
• Viewing behaviors - binge-watcher, weekday, weekend patterns, on-the-go, home
• First series or movie watched after subscribing 
• Browsing behaviors - explorative vs. repeat watcher

Key Partners of Netflix

Producers, consumer electronics, broadcasters, and cable companies are the essential partners of Netflix. They ensure the flawless and successful execution of the company’s services and processes. There are specific components that Netflix considers its primary partners. They are the IP/content owners, which refers to movies and shows the company acquires from third parties. 

Secondary partners are promoters and influencers who help get the word out to Netflix’s target market . They can be cinemas, theaters, award-giving bodies, magazines, and television shows. 

Key Activities of Netflix

The key activities in the Netflix business model canvas focus on licensing, producing, and platform development. Ultimately, the goal of Netflix is to provide the best streaming content to its subscribers. Besides the content, Netflix provides one of the best user interface designs among other streaming service providers today. This is why even beginners in streaming know how to navigate the Netflix app and website since it’s user-friendly and high-performance. 

The competition is also strong in the online streaming industry, so Netflix must continue to produce, choose, acquire, and license relevant content, building relationships and negotiating with content producers, movie production houses, and studios. Most importantly, Netflix must keep updating its subscription model, including the pricing strategy, to sustain its growth and increase its customer base. 

Customer Relationships of Netflix

The customer relationship of Netflix is generally built around the platform itself. As previously mentioned, the website and the app are user-friendly, allowing subscribers to configure based on their preferences. Furthermore, the Netflix algorithm suggests various series and films based on the user’s content consumption. Netflix provides a comprehensive FAQ section for subscribers’ concerns and questions. Besides that, users can also reach the support team through email, phone, or chat. 

Most importantly, Netflix takes pride in efficiently using its networks online to engage with its subscribers. It consistently provides updates on promotions and new releases on Instagram, X (formerly Twitter), Linkedin, and Facebook. The additional clips and highlights on its YouTube handles allow Netflix fans to be more excited about their favorite shows on the streaming platform. 

Key Resources of Netflix

The Netflix brand is one of the key resources of the company. Along with that are its movie portfolio and the Netflix platform. Netflix’s brand and platform are so broad that one must categorize them. The specifications are as follows:

• Content library. This could include Netflix originals and those that the streaming service must secure a license to be streamed on Netflix. Due to some streaming content providers announcing their plans to build their streaming libraries, Netflix has to pour a considerable budget into creating original content. 
• Filmmakers, writers, and actors. In some cases, Netflix also provides a space for indie and newcomers and gives creative freedom in creating content. It will be interesting to know how the supply and demand will shift with various streaming platforms boosting their content creations. 
• Studios. To support Netflix’s initiatives for content creation, the company is starting to acquire its studios and hire additional staff. 
• Tech staff. This is another key resource in the Netflix business model canvas. The technology people are those who made Netflix a streaming service provider. 

Channels of Netflix

Netflix embraces a diverse array of devices as channels through which customers can access its content. Whether it’s a laptop, computer, smartphone, tablet, or Smart TV, Netflix ensures compatibility with virtually any screen-equipped device that can connect to the internet. Additionally, set-top boxes and gaming consoles also support Netflix, making it accessible to an even wider audience. Essentially, if a device has the capabilities for connectivity and screen display, it can serve as a channel for enjoying Netflix’s vast content library, ensuring that customers have the flexibility to choose their preferred platform.

Beyond the hardware channels, Netflix employs online channels for extended reach and publicity. These encompass a robust presence on social media platforms, engagement with various media outlets, and participation in renowned film festivals. These online channels serve as vital tools for promoting Netflix’s content and connecting with a global audience.

Cost Structure of Netflix

Netflix’s cost structure is enormous. This is why the company experienced a poor cash flow during its first years. The business model canvas of Netflix needs considerable investment to reach the current state of the streaming service.

Generally, Netflix allows a massive budget for production and licensing. Besides producing Netflix series and film originals, the company must purchase content and licenses from other production houses. This is to keep its library intact with relevant and new content. This is a relatively huge task, as other streaming services are doing the same.

Digital infrastructure is another aspect that gets the higher budget from the Netflix cost structure, from when Netflix was developed to maintenance, patents, research, and software development. As you know, the bread and butter of Netflix is the app and website where subscribers access various content.

Revenue Streams of Netflix

Subscriptions are where Netflix gets its revenue. There are three different plans the streaming service offers, depending on the quality of content provided. The basic plan includes content that is streamable in standard definition. Subscribers can also opt for the standard plan if they prefer to stream Netflix content in high definition. Finally, the premium plan allows streamers to watch content in ultra-HD. The price for each plan, though, depends on the country the user is in.

Netflix also has its DVD renting service, the company’s first project before being an online streaming service provider. The monthly membership costs depend on the allowed number of discs per month. However, in April 2023, the company announced it would shut down its rental services after twenty-five years. This is probably due to the decline in demand, as most people today prefer to stream movies and series online.

How Does Netflix Make Money?

Based on the Netflix business model canvas, the company generally makes money from the content it provides to its subscribers. The more content variety the platform has, the better the reception would be from movie and series fans.

Interestingly, nearly 90% of Netflix’s revenue comes from partnerships and subscriptions, while the remaining 10% is from advertising. It’s the first company to completely leverage the internet as a vital medium to provide OTT solutions filled with exceptional services. Along the way, it allowed Netflix to easily connect with its target markets and learn about the audiences’ perspectives.

Netflix capitalized on the latest entertainment trend and infused it with its brand. Its selling point ultimately reached every subscriber on the platform who wished to see every episode of their favorite series. In most cases, the company even gets the upper hand in securing rights to the newly released movies. This is an excellent strategy, especially in geolocations where a specific film is not shown in cinemas.

Despite its billions of budget on original content, Netflix is still highly profitable. In 2022, it generated $4.5 billion in profits. This is primarily due to the high viewership demand during the pandemic when almost everyone was in lockdown.

Netflix still draws more subscribers year after year, but with Disney, Apple, and other streaming services being Netflix’s competition, the streaming platform is finding innovative means to grow its customer base even further.

Key Takeaways

As you know, the power of OTT streaming services was spearheaded by Netflix. While there might be solid competition in its industry, it’s interesting that it sticks to the business model canvas of Netflix to ensure it follows the right processes while achieving its goals. You know that the Netflix business model changes over time. It was just recently announced that it will insert ads on some low-tier plans, so this element adds to its revenue streams.

Also, the business model presented by Netflix is generally straightforward, which must be the case if you plan to develop one for your company. Longer phrases and sentences can be too much for your audience to read, so keywords are fitting.

Most importantly, the best way to plot your business model is through an online diagramming tool. With Boadmix, you can access hundreds of templates, including the business model canvas template . It’s editable, so you can use the diagram and tweak some parts to make it your own. The diagramming software promotes collaboration by inviting team members and stakeholders to view the business model template through a dedicated link.

Features of Creating a Business Model Canvas on Boardmix

Developing a Business Model Canvas is a strategic activity often undertaken by startups and established businesses to identify and plan out different business aspects. Boardmix online whiteboard has numerous features that make this process more intuitive, efficient, and collaborative. 

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1. Interactive Whiteboard Interface

Boardmix's digital whiteboard allows users to visually layout and connect various components of the Business Model Canvas, like Key Partners, Value Propositions, Customer Segments, etc. The ability to write, draw, or annotate on the board facilitates clear expression of ideas.

2. Real-time Collaboration

Boardmix’s collaboration feature enables teams to work on the same Business Model Canvas simultaneously. This real-time interaction allows for immediate feedback, brainstorming, and iteration, which can significantly enhance the canvas’s quality and relevance.

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Reorganizing ideas and elements is made easy with Boardmix’s drag-and-drop functionality. This feature helps to effortlessly structure or restructure the canvas, making the modeling process flexible and adaptive to evolving business strategies.

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Supplement your Business Model Canvas with rich multimedia content. Integrate images, documents, or even video clips directly into the canvas to provide additional context or explanation, enhancing comprehension and engagement.

5. AI-Enhanced Brainstorming

Boardmix’s AI enhancement feature can stimulate brainstorming by suggesting related concepts based on the inputs you provide for your Business Model Canvas. This innovative feature can contribute to the development of a comprehensive and robust business model.

6. Ready-to-use Templates

Boardmix offers pre-made Business Model Canvas templates, accelerating the modeling process. These templates provide a well-structured format that can be readily filled in with business-specific details.

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With Boardmix, you never have to worry about losing your work. Your Business Model Canvas gets auto-saved and stored securely in the cloud. This means you can access your canvas from anywhere and at any time.

By utilizing these features of  Boardmix Online Whiteboard , developing a comprehensive and visually engaging Business Model Canvas becomes an enjoyable and effective process.

References:

https://www.investopedia.com/insights/how-netflix-makes-money/  

https://businessmodelanalyst.com/netflix-business-model/#A_brief_history_of_Netflix

https://www.feedough.com/how-does-netflix-make-money/  

https://www.vplayed.com/blog/how-does-netflix-make-money/#:~:text=Subscribers%20are%20given%20access%20to,~10%25%20comes%20from%20advertising .

https://www.zippia.com/advice/how-does-netflix-make-money/#how-does-netflix-make-money

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Netflix - Explaining the Business Model and Revenue Streams

Uncover the inner workings of Netflix's business model and revenue streams in this in-depth article.

Netflix is one of the leading players in the streaming industry. With its vast content library and global subscriber base, the company has revolutionized the way we consume entertainment. In this article, we will delve into the intricacies of Netflix's business model and explore the various revenue streams that contribute to its success.

Understanding the Netflix Business Model

At the core of Netflix's business model is its subscription-based model , content production and acquisition , and data-driven personalization .

Netflix, the world's leading streaming service, has revolutionized the way people consume entertainment. With its vast library of movies, TV shows, and documentaries, Netflix offers a convenient and affordable way for subscribers to enjoy their favorite content anytime, anywhere.

The Subscription-Based Model

Netflix operates on a monthly subscription basis , offering unlimited access to a wide range of online streaming content for a fixed fee. This model allows subscribers to enjoy their favorite movies, TV shows, and documentaries without the hassle of commercials or strict airing schedules.

With a subscription, users can create individual profiles for each member of their household, ensuring a personalized viewing experience for everyone. This flexibility has made Netflix a popular choice for families and individuals alike.

By offering various subscription plans tailored to different needs and budgets, Netflix attracts a diverse customer base. From the basic plan that allows streaming on one device at a time to the premium plan that offers Ultra HD streaming on up to four devices simultaneously, there is an option for every type of viewer.

Furthermore, the company's user-friendly interface and personalized recommendations enhance the user experience, making it even more attractive for subscribers. Netflix's intuitive design allows for easy navigation and seamless content discovery, ensuring that users can find something they love with just a few clicks.

Subscription-Based Revenue

Netflix operates on a subscription-based model, where users pay a monthly fee for access to the platform's content. This steady stream of revenue allows Netflix to invest in original content and expand its library, keeping subscribers engaged and attracting new customers.

Key points:

• Monthly subscription fee
• Steady revenue stream
• Investment in original content

Content Licensing and Production

Netflix acquires content through licensing deals with production companies and also invests heavily in original programming. This dual approach allows the platform to offer a wide range of content while also differentiating itself from competitors.

• Licensing deals with production companies
• Heavy investment in original programming
• Differentiation from competitors

Content Production and Acquisition

Netflix invests heavily in content production and acquisition. By producing original series, movies, and documentaries, the company aims to create a unique and exclusive content library that sets it apart from its competitors. This strategy not only attracts new subscribers but also helps retain existing ones.

With an emphasis on quality storytelling and diverse representation, Netflix has become a major player in the entertainment industry. Its original content, such as the critically acclaimed series "Stranger Things" and the Oscar-winning film "Roma," has garnered widespread acclaim and a dedicated fan base.

In addition to producing original content, Netflix also acquires licensing rights for popular shows and movies from external production companies and studios. This ensures that its content library is constantly refreshed with a diverse range of high-quality content. From beloved classics to the latest blockbusters, Netflix offers a vast selection that caters to every taste.

Furthermore, Netflix's commitment to international content has made it a global powerhouse. By acquiring and producing shows and movies from around the world, Netflix has expanded its reach and gained a loyal international audience.

Data-Driven Personalization

Netflix leverages the power of data to provide personalized recommendations to its subscribers. Through sophisticated algorithms, the platform analyzes user behavior, viewing history, and preferences to curate a tailored selection of content for each individual.

By understanding what users watch, when they watch, and how they watch, Netflix is able to offer highly accurate recommendations that cater to individual tastes. Whether it's suggesting similar titles based on previous viewing habits or introducing users to new genres they might enjoy, Netflix's recommendation engine plays a crucial role in enhancing the overall viewing experience.

This data-driven approach not only enhances the user experience but also helps Netflix understand and anticipate customer preferences. By consistently improving its recommendation engine, Netflix maximizes customer satisfaction and engagement, which in turn drives subscriber retention.

Moreover, Netflix's data-driven insights also inform its content production and acquisition decisions. By analyzing viewer trends and preferences, the company can identify gaps in the market and develop content that resonates with its audience. This targeted approach to content creation ensures that Netflix continues to deliver compelling and relevant programming.

In conclusion, Netflix's success can be attributed to its subscription-based model, content production and acquisition, and data-driven personalization. By offering a wide range of content, tailored recommendations, and a seamless user experience, Netflix has become a dominant force in the entertainment industry, shaping the way we consume and enjoy media.

Revenue Streams of Netflix

Netflix, the leading streaming platform, has established multiple revenue streams that contribute to its financial success. While monthly subscription fees and content licensing are the primary sources of revenue, Netflix has also formed strategic partnerships with telecom and cable providers to expand its reach and accessibility.

Monthly Subscription Fees

One of the key revenue streams for Netflix is its monthly subscription fees. The platform offers a range of subscription plans to cater to different needs and preferences. Subscribers can choose from basic, standard, and premium plans, each offering various features such as streaming quality and simultaneous device usage.

These subscription fees play a significant role in Netflix's revenue generation. With millions of subscribers worldwide opting for the convenience and extensive content library offered by the platform, the subscription fees contribute substantially to Netflix's financial success.

Content Licensing

In addition to producing original content, Netflix also focuses on licensing popular shows and movies from external production companies and studios. By acquiring the rights to stream these licensed content, Netflix expands its library and attracts a wider audience.

Content licensing agreements require Netflix to pay royalties or licensing fees to the content owners. The amount of these fees varies depending on the popularity and exclusivity of the content. However, the revenue generated from licensing helps diversify Netflix's content offerings, making it more appealing to subscribers.

Partnership with Telecom and Cable Providers

Recognizing the importance of expanding its reach, Netflix has strategically partnered with telecom and cable providers. These partnerships allow Netflix to tap into a larger customer base and offer its services as part of bundled packages.

By teaming up with these providers, Netflix not only gains access to new markets but also attracts customers who may not have previously considered subscribing to the platform. This additional revenue stream strengthens Netflix's position in the industry and drives further growth.

Furthermore, these partnerships often involve revenue-sharing agreements , where Netflix receives a portion of the subscription fees from the bundled packages. This mutually beneficial arrangement allows both Netflix and the telecom/cable providers to leverage each other's strengths and expand their customer base.

In conclusion, Netflix's revenue streams are diverse and strategically designed to maximize its financial success. The combination of monthly subscription fees, content licensing, and partnerships with telecom and cable providers has enabled Netflix to become a dominant player in the streaming industry.

The Role of Original Content in Revenue Generation

Investing in original content has been a pivotal strategy for Netflix. By producing its own series, movies, and documentaries, the company not only differentiates itself from competitors but also creates additional revenue streams.

Netflix's commitment to original content goes beyond mere differentiation. The company understands that investing in high-quality, unique content is essential to attracting and retaining subscribers in today's highly competitive streaming landscape.

Investment in Original Content

Netflix allocates a significant portion of its budget to produce high-quality original content. This investment allows the company to attract top talent, produce critically acclaimed shows and movies, and build a loyal fan base.

With its substantial financial commitment, Netflix can afford to take risks and experiment with different genres and formats. This freedom allows the company to push creative boundaries and deliver innovative storytelling that captivates audiences around the world.

By owning the rights to its original content, Netflix can leverage revenue from licensing agreements with other platforms and broadcasters. This further monetizes its content library and increases overall profitability. The success of shows like "Stranger Things" and "The Crown" has led to lucrative licensing deals, allowing Netflix to expand its reach and generate additional income.

Impact on Subscriber Growth and Retention

Original content plays a crucial role in attracting new subscribers and retaining existing ones. Netflix's commitment to creating compelling and diverse original content has garnered a devoted following who eagerly anticipate each new release.

Exclusive shows such as "Stranger Things" and "The Crown" have become cultural phenomena, drawing in millions of viewers worldwide. These shows not only captivate audiences but also generate buzz and excitement, leading to increased word-of-mouth recommendations and social media discussions.

The popularity of Netflix's original content not only drives subscriber growth but also increases subscriber retention. Viewers are more likely to continue their subscriptions to stay updated on their favorite Netflix originals. The company's ability to consistently deliver high-quality content keeps subscribers engaged and satisfied, reducing churn rates.

Moreover, original content allows Netflix to personalize its offerings and cater to different audience segments. By producing a wide range of genres and formats, the company ensures that there is something for everyone, further enhancing subscriber satisfaction and loyalty.

In conclusion, investing in original content has proven to be a winning strategy for Netflix. It not only sets the company apart from its competitors but also creates multiple revenue streams and drives subscriber growth and retention. By continuing to prioritize original content, Netflix remains at the forefront of the streaming industry, captivating audiences worldwide.

Challenges and Risks in Netflix's Business Model

While Netflix's business model has been highly successful, it is not without its challenges and risks. These include the high cost of content production and acquisition, dependence on network neutrality, and competition in the streaming market.

High Cost of Content Production and Acquisition

Producing and acquiring high-quality content comes at a significant cost. Netflix's continued investment in original content and licensing agreements requires substantial financial resources. As the platform expands globally and increases its content library, the expenses associated with content creation and licensing may continue to rise.

Managing these costs while maintaining a competitive subscription price poses a challenge for Netflix. However, the company's strong revenue streams and commitment to creating compelling content help offset these expenses.

Dependence on Network Neutrality

Netflix's success relies heavily on network neutrality, which ensures that internet service providers treat all online traffic equally. The ability to stream content smoothly and without interruptions is crucial for Netflix's user experience.

However, changes in net neutrality regulations or the introduction of data caps by internet service providers could pose a risk to Netflix's streaming quality and user satisfaction. The company must monitor and adapt to any potential shifts in net neutrality policies to mitigate this risk effectively.

Competition in the Streaming Market

The streaming industry is highly competitive, with numerous players vying for subscribers' attention. Netflix faces competition from both established companies and new entrants in the market.

Rival streaming services such as Amazon Prime Video, Hulu, and Disney+ offer compelling content libraries and original productions that attract subscribers. Additionally, cable and satellite providers are launching their own streaming platforms, further intensifying the competition.

To stay ahead of the competition, Netflix must continue to produce high-quality original content, invest in technology to enhance user experience, and maintain a strong presence in both domestic and international markets.

In conclusion, Netflix's business model revolves around its subscription-based model, content production and acquisition, and data-driven personalization. The company generates revenue through monthly subscription fees, content licensing, and partnerships with telecom and cable providers. Investment in original content plays a crucial role in revenue generation, attracting and retaining subscribers. Despite facing challenges such as the high cost of content and competition in the streaming market, Netflix's solid business model and innovative strategies have propelled it to become a global leader in the entertainment industry .

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Enthrall your audience with this Netflix Company Profile Powerpoint Presentation Slides. Increase your presentation threshold by deploying this well-crafted template. It acts as a great communication tool due to its well-researched content. It also contains stylized icons, graphics, visuals etc, which make it an immediate attention-grabber. Comprising fourty four slides, this complete deck is all you need to get noticed. All the slides and their content can be altered to suit your unique business setting. Not only that, other components and graphics can also be modified to add personal touches to this prefabricated set.

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How Netflix Reinvented HR

• Patty McCord

When Netflix executives wrote a PowerPoint deck about the organization’s talent management strategies, the document went viral—it’s been viewed more than 5 million times on the web. Now one of those executives, the company’s longtime chief talent officer, goes beyond the bullet points to paint a detailed picture of how Netflix attracts, retains, and manages stellar employees. The firm draws on five key tenets:

Hire, reward, and tolerate only fully formed adults. Ask workers to rely on logic and common sense instead of formal policies, whether the issue is communication, time off, or expenses.

Tell the truth about performance. Scrap formal reviews in favor of informal conversations. Offer generous severance rather than holding on to workers whose skills no longer fit your needs.

Managers must build great teams. This is their most important task. Don’t rate them on whether they are good mentors or fill out paperwork on time.

Leaders own the job of creating the company culture. You’ve got to actually model and encourage the behavior you talk up.

Talent managers should think like businesspeople and innovators first, and like HR people last. Forget throwing parties and handing out T‑shirts; make sure every employee understands what the company needs most and exactly what’s meant by “high performance.”

Trust people, not policies. Reward candor. And throw away the standard playbook.

Sheryl Sandberg has called it one of the most important documents ever to come out of Silicon Valley. It’s been viewed more than 5 million times on the web. But when Reed Hastings and I (along with some colleagues) wrote a PowerPoint deck explaining how we shaped the culture and motivated performance at Netflix, where Hastings is CEO and I was chief talent officer from 1998 to 2012, we had no idea it would go viral. We realized that some of the talent management ideas we’d pioneered, such as the concept that workers should be allowed to take whatever vacation time they feel is appropriate, had been seen as a little crazy (at least until other companies started adopting them). But we were surprised that an unadorned set of 127 slides—no music, no animation—would become so influential.

• PM Patty McCord was the chief talent officer at Netflix from 1998 to 2012 and now advises start-ups and entrepreneurs. She is the author of Powerful: Building a Culture of Freedom and Responsibility (Silicon Guild, 2018).

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Netflix is in the running for NFL Christmas games

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Christmas could be coming early for Netflix.

The NFL is considering a bid from the streaming behemoth for two football games to be played on Dec. 25, which falls on a Wednesday this year. The games would be the first major professional league sports events carried by the streaming giant.

An NFL representative had no comment. But one person familiar with the discussions said the league is still weighing the offer.

One consideration is whether having the games on the streamer instead of broadcast TV will limit exposure to fans.

Netflix has around 83 million subscribers in the U.S. and Canada. The number of subscribers using the lower-priced ad-supported tier that carries commercials is a small fraction of that total.

One reason Netflix would want the NFL is that it can help build its advertising business. Netflix has a presentation for advertisers scheduled in New York next week.

The NFL’s current TV partners, who are paying a total of $11 billion in annual rights fees, were asked to bid on the games, according to two people familiar with the talks who were not authorized to comment.

Company Town

Amazon’s Prime Video and Netflix are crashing TV’s ad-selling party

The streaming services will be looking for a larger share of the $27-billion pot for commercial time in the 2024-25 TV season.

April 24, 2024

The fact that the NFL could extract two games from the existing NFL packages — and ask its media partners to pay for them again because they will run on a holiday outside of the usual windows of Thursday, Sunday and Monday night — demonstrates the league’s clout. The ratings for NFL games tower over everything else in television.

Puck was the first to report that Netflix was included in the process.

Christmas Day has long been the sports domain of the NBA, which has a slate of games running on ABC. But the NFL was pleased enough with the ratings performance of its Christmas Day games in recent years and is making them a part of its schedule for the 2024-25 season.

Over time, Netflix has increasingly invested in sports-related content.

Earlier this year, Netflix said it would become the home for WWE Raw starting in January 2025 and announced it would host live boxing matches, including one with YouTuber and professional boxer Jake Paul and Mike Tyson in July . Other live sports events streamed on Netflix include a tennis exhibition match and a golf tournament.

“We believe that these kind of eventized cultural moments, like the Jake Paul and Mike Tyson Fight, are just that kind of television that we want to be part of winning over those moments with our members as well,” said Ted Sarandos, Netflix co-chief executive, in an earnings presentation last month.

Greg Peters, co-CEO of Netflix, said these types of cultural events are also relevant to advertisers it seeks to court.

“So it’s an opportunity for us to expand our advertising offering and give those brands access to these kind of culture-defining moments,” Peters said in an earnings presentation in April.

In addition to hosting live events, Netflix has also developed a following for its sports documentaries.

Sarandos said in an earnings presentation that the company’s North Star is “to grow engagement, revenue and profit.”

“So when and if those opportunities arrive that we can come in and do that, which we feel like we did in our deal with WWE, if we can repeat those dynamics in other things, including sports, we’ll look at it for sure,” Sarandos said.

“Raw” is the top show on the USA Network, where it brings in 17.5 million unique viewers over the course of the year, WWE and Netflix said.

The deal is for an initial 10 years for an aggregate rights fee of more than $5 billion, with an option for Netflix to extend the agreement, according to a filing by TKO, the holding company of WWE, with the U.S. Securities and Exchange Commission.

More to Read

How the NBA’s next TV deal could disrupt the media landscape

May 3, 2024

NFL announces scheduling wrinkles, including Wednesday Christmas Day games

March 26, 2024

Apple veteran to lead new sports streaming venture

March 15, 2024

Inside the business of entertainment

The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.

You may occasionally receive promotional content from the Los Angeles Times.

Stephen Battaglio writes about television and the media business for the Los Angeles Times out of New York. His coverage of the television industry has appeared in TV Guide, the New York Daily News, the New York Times, Fortune, the Hollywood Reporter, Inside.com and Adweek. He is also the author of three books about television, including a biography of pioneer talk show host and producer David Susskind.

Wendy Lee is an entertainment business reporter, covering streaming services such as Netflix, Amazon Prime Video and Apple TV+. She also writes about podcasting services, digital media and talent agencies.

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Are You Screaming for a Free Streaming Choice? Try Shout! TV.

Among the free streaming services, few are as enjoyable and reliable as this one.

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By Jason Bailey

For this month’s spotlight on lesser-known but worthwhile streaming services , we’re showcasing our first advertising-based video-on-demand platform, or A.V.O.D., the model in which services make their money not via subscriptions, but through good old-fashioned advertisements. It’s a trade-off, to be sure; commercials were one of the reasons everyone got rid of cable. But now that Disney+, Netflix and their ilk have shoved ads back into their (paid!) programming, it’s not so hard to tolerate them from a free service.

Among those free services, few are as enjoyable and reliable as Shout! TV , the latest incarnation of one of the most beloved labels in all of physical media. Shout! Factory was started in 2002 by three of the minds behind the great music label Rhino Records, and both imprints carved out a niche for catering to those whose tastes are slightly off the beaten path. As a DVD, Blu-ray and now 4K label, Shout! has been dependable and admirable in both curation and presentation, restoring and releasing crackerjack titles from the realms of cult, horror, sci-fi, action, animation, foreign films and throwback TV.

Those genres also make up the backbone of the menu on Shout! TV. Their on-demand film selection includes a wide variety of movies, like Godzilla and Jackie Chan , Gene Autry and Elvira , with a frequently rotating library of entertaining titles from the silent era to the present . But their most impressive selections are in the label’s original specialties. The cult section is a delightful menagerie of Mario Bava films, biker movies, skin flicks, grimy indies, Roger Corman cheapies, contemporary cult items like “ Donnie Darko ” and oddities you’ll click only because of the inexplicable titles (“ Dirty Duck ”??). And Shout has enough horror movies to run a successful sublabel, Scream Factory, so the channel’s horror section is stacked with variety that includes “ Night of the Living Dead ,” “ Alligator ” and “ Chopping Mall .”

On the TV side — where the ad spots are particularly unobtrusive (credit where due: Shout bothers to insert them in designated commercial spots, rather than at random intervals as some other A.V.O.D. services do) — viewers can find scores of classic television shows and comedy shorts . They also have variety shows , cartoons and adventures , but the crown jewels of their TV offerings are their expansive collections of old episodes of “ The Carol Burnett Show ” and “ The Tonight Show Starring Johnny Carson ”; those are not only available as à la carte episodes, based on your preferred guest stars or eras, but also among their 24/7 streaming channels, where you can just tune in and view whatever they’re running. You know, just like watching TV!

All of this makes Shout! TV one of the very best streaming values since it doesn’t cost you a single cent — just the time you’ll spend watching ads. Here are a few recommendations:

Mystery Science Theater 3000: “The Skydivers” : Shout has been in business for quite some time with the various iterations of “ Mystery Science Theater 3000 ,” the uproariously funny cult TV show where an average Joe, marooned in space, watches bad movies with his robot companions while cracking wise. In addition to the original episodes, Shout also streams their “riffed” short films and episodes from “MST” alumni shows “ Cinematic Titanic ,” “ The Film Crew ” and “ Rifftrax.” But if you’re looking for an entry point, I’d recommend this sixth season episode, in which our boys first watch the educational short “Why Study Industrial Arts?” (the titular question is not satisfactorily answered, frankly) and the technically incompetent and narratively incoherent 1963 film “The Skydivers,” from the writer-director Coleman Francis, a filmmaker so inept, he makes Ed Wood look like Martin Scorsese.

The Dick Cavett Show: “Hollywood Greats — Alfred Hitchcock” : Carson may be the big name and the shining star for viewers looking to stream a throwback talk show; then as now, however, Dick Cavett is the connoisseur’s choice, offering up brainy, far-reaching interviews with some of the wittiest folks in show business. Shout has a wonderful cross-section of full episodes, featuring candid conversations with music icons like John Lennon , Ray Charles , David Bowie and Janis Joplin ; comic legends like Groucho Marx , Robin Williams and Lucille Ball ; and Hollywood greats like Orson Welles , Katharine Hepburn , Bette Davis and the Master of Suspense, who walks Cavett through his philosophies of terror, his methodology with actors and how he built some of his most signature sequences.

“The Decline of Western Civilization” (parts I-III) : Before she directed “Wayne’s World” and made a mint, Penelope Spheeris was vibrantly documenting the various squalid corners of the Los Angeles youth and music scenes. The first “ Decline ,” released in 1981, captured the turn-of-the-decade punk and hardcore scene, warts and all; “ Part II: The Metal Years ,” showcases the scene seven years later but a world away, in the midst of its takeover by style-over-substance heavy metal. “ Part III ” hit screens a decade later, after Spheeris’s Hollywood success, focusing on wayward youths and gutter punks. All three films play now like cultural anthropology, deeply immersed and empathetic (and, occasionally, wryly funny).

“ Fitzcarraldo ” : He may be as well-known as a meme as he is as a filmmaker these days, but the German director Werner Herzog boasts a vast filmography of documentaries, shorts and narrative features, much of it represented in Shout’s “ Werner Herzog Film Collection .” All admirers have their favorites, but the quintessential Herzog movie is this ravishing, brutal and picturesque 1982 epic, with Herzog’s frequent leading man (and sworn enemy) Klaus Kinski as an Irish immigrant in Peru who dreams of building an opera house in the middle of the Amazon.

“ Smithereens ” : You can’t go wrong in the aforementioned cult section — these people know their cult movies — but if you’re looking for a real treat, check out this 1982 indie banger from the director Susan Seidelman. In telling the story of a Jersey runaway who dreams of fame, Seidelman captures the New York downtown art scene of the early 1980s (and the various hangers-on therein) with lively verisimilitude and welcome cynicism.

Explore More in TV and Movies

Not sure what to watch next we can help.a.

Andy Serkis, the star of the earlier “Planet of the Apes” movies, and Owen Teague, the new lead, discuss the latest film in the franchise , “Kingdom of the Planet of the Apes.”

The HBO series “The Sympathizer” is not just a good story, it’s a sharp piece of criticism on Vietnam war movies, our critic writes .

In “Dark Matter,” the new Apple TV+ techno-thriller, a portal to parallel realities allows people to visit new worlds and revisit their own past decisions .

The tennis movie “Challengers” comes to an abrupt stop midmatch, so we don’t know who won. Does that matter? Our critics have thoughts .

If you are overwhelmed by the endless options, don’t despair — we put together the best offerings   on Netflix , Max , Disney+ , Amazon Prime  and Hulu  to make choosing your next binge a little easier.

Sign up for our Watching newsletter  to get recommendations on the best films and TV shows to stream and watch, delivered to your inbox.

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I Already Miss ‘Fallout’: Did the Binge Watch Model Help the Prime Video Series or Hurt It?

Where to stream:, 7 shows like ‘fallout’ if you loved the video game-based drama, ‘fallout’s sarita choudhury talks about lee moldaver’s backstory, returning for season 2, and more, 9 unanswered questions from the ‘fallout’ tv show that season 2 will need to address.

Fine. I’ll say it. I miss Fallout .

The Prime Video television adaptation of Bethesda’s monumentally huge video game franchise premiered literally a month ago, on April 10, and I already feel the lack of it in my life. Like many others, I fell hard and fast for the show’s madcap vision of a post-nuclear hellscape, Ella Purnell ‘s plucky heroine Lucy MacLean, Aaron Moten ‘s adorably bumbling wannabe knight Maximus, and, of course, Walton Goggin ‘s perversely sexy bounty-hunting Ghoul. Yes, like many others, I found the decaying corpse man with a penchant for violence and a hole where his nose should be hot .

I really, really loved watching Fallout ! I lapped the series’s mix of violence and absurdity up. I found myself invested in the fates of its original characters. I binged the bejesus out of all eight episodes that Amazon unleashed on the world at once. And now…I miss it. Fallout was dominating the streaming charts and the conversation a mere month ago and now…nothing. Okay, maybe I saw one measly meme on a friend’s Instagram stories this week, but besides that, the culture has moved on to stuff like Baby Reindeer , Tom Brady roast jokes, hip hop rivalries, and how much we hate the new iPad commercial. Whereas another one of my favorite 2024 shows, Shōgun , lingered in the zeitgeist for months and is still birthing a myriad of “The Anjin says” memes.

Fallout’s debut was huge. It is the second most-streamed show in Prime Video history, right after their lavish Lord of the Rings series. But could Fallout have been even bigger had Amazon opted to rollout the series on a weekly schedule, as FX did for Shōgun or HBO does for House of the Dragon ? Or was the secret to Fallout ‘s success that delightful binge model?

In an April 30 article for Puck , streaming analytics expert Julia Alexander compared the strategies behind Netflix’s surprise smash Baby Reindeer and Prime Video’s Fallout . Both were released as a binge model, but Alexander wrote that she believed Amazon had sold itself short by dropping all of Fallout at once: “Amazon’s post-apocalyptic drama  Fallout  ticks all the boxes for a show that would have thrived as a weekly release but got blasted out all at once.”

While Alexander admitted that Fallout was still a success — “ Fallout  amassed more than 65 million views within its first two weeks across all episodes, and enjoyed the second-largest debut ever on Prime Video ,  sitting just behind  The Rings of Power ” — but that “[b]inge releases are always going to look better at the start.” The long tail of interest in Fallout has since stagnated and Amazon could have accumulated more viewership and cultural cache had they released episodes weekly. The only strategic reason Alexander could see for the binge drop was to create “a big show to highlight and support its recently instituted advertising tier ahead of its first Upfront bonanza in May.”

So, from a business perspective, Prime Video might have simply released Fallout Season 1 all at once to juice its initial numbers ahead of an Upfront presentation. They chose the short term big bang — no pun intended — over larger, longer, sustained growth.

But is there a creative argument for why Prime Video might have decided to gift all of Fallout to the fans at once? Decider’s own Fallout recapper, Sean T. Collins , opined in his episodic reviews that the series worked well as a binge-watch:

Fallout  may be the first show I’ve ever watched that actually benefits from the standard streaming model of a simultaneous full-season release. Watching this show, moving from level to level and world to world, following Lucy and Maximus and the Ghoul and Norm on their side quests, getting those Cooper Howard cut-scene flashbacks: Watching  Fallout  feels like spending the weekend trying to beat a video game. 

And he’s right! One of the reasons why I enjoyed Fallout so much was the way it was episodically structured to raise the stakes, introduce new lore, incorporate new wrinkles, present new “missions” felt like progressing through a video game. Each new installment was like entering a new level of the game. The binge enhanced my enjoyment of the series.

So is it possible that Amazon was right to release Fallout all at once? Was it an aesthetic choice, designed to present the storytelling in the best light possible? Or was it a gambit to juice metrics before a big ad-sales push?

Either way, I know one thing. I wish I had new episode of Fallout to watch right now, a mere month since the show’s debut.

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