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Netflix Business Model Innovation Explained

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See how Netflix broke with the dominant industry logic and revolutionised the way we watch and rent movies & tv shows!

Discover how to innovate your business with the 55 Business Model Patterns!

Based on the bestselling St. Gallen Business Model Navigator by Oliver Gassmann, Karolin Frankenberger & Michaela Csik

Veröffentlicht in: Business

Netflix Business Model Innovation Explained

  1. 1. www.bmilab.com Netflix: watch TV shows & movies anytime, anywhere Discover how to innovate YOUR Business with the 55 Business Model Patterns Based on the St Gallen Business Model Navigator
  2. 2. www.bmilab.com Did you know that 90% of the most successful companies are based on only 55 Business Model Patterns? That means that innovation is mostly built on the recombination of already existing ideas. Want to learn more about the patterns and the process? Check out our Uber Slideshare
  3. 3. www.bmilab.com Now, see how Netflix innovated its industry
  4. 4. www.bmilab.com First, see how movie rentals used to work WHO WHAT HOW WHY - People looking for entertainment in their free time - People that missed a certain movie in the theaters - Movie rental store - DVDs are rented according to availability at the store - Store offers movies months after exhibition in movie theatres - Customer picks up and returns DVDs in the store - One time sign up fee - Fee for rented movie - Penalty fee for delayed return - Sales of popcorn and candy
  5. 5. www.bmilab.com Now, Meet Netflix! WHO WHAT HOW WHY - People looking for entertainment - TV series fans - Online streaming platform that offers recently released movies and TV series - Offers exclusive series as well - Website and app - Available in a large range of devices - Licensing agreement with movie producers - Monthly fee - No charge per movie watched - Low operational costs
  6. 6. www.bmilab.com But HOW did Netflix innovate?
  7. 7. www.bmilab.com To Find out, let’s see Which Patterns Were Used
  8. 8. www.bmilab.com #11 The Digitalization Pattern HOW NETFLIX DOES IT: Netflix offers an online platform instead of a physical store in which movies can be streamed instead of rented.
  9. 9. www.bmilab.com #15 The Flatrate Pattern HOW NETFLIX DOES IT: Netflix charges a monthly fee that allows the client to watch unlimited movies and TV shows
  10. 10. www.bmilab.com #25 The Leverage Customer Data Pattern HOW NETFLIX DOES IT: By keeping track of what every customer watches, Netflix algorithm selects movies that its users are more likely to enjoy and suggest a customized list to each one of them, enhancing customer experience
  11. 11. www.bmilab.com WANT TO LEARN MORE? Yes, we know, we only gave you a small taste of what’s to come! And that was a piece of cake, wasn’t it? Easy, but delicious! If you’re still hungry for more…
  12. 12. www.bmilab.com Visit www.bmi-lab.ch and discover more about Business Model Innovation! PS.: No real cake included! But more juicy information ;)
  13. 13. www.bmilab.com WHERE DOES IT ALL COME FROM? Of course, there was a lot of research behind the pattern cards The result of it is this book to the right: The Business Model Navigator! by Oliver Gassmann, Karolin Frankenberger & Michaela Csik