N E T F L I X ANALYZING THE DIGITAL STREAM

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!!ADM3378 | EBUSINESS

PREPARED FOR: SAMER FORZLEY !

Darrell Mayo, 5760795 Jamie Nguyen, 6136610 Dorina Rusu, 5697365

Vineeth Sampathkumar, 6009632 Olivia Villalta, 6032946

Q U E S T I O N O N E : T H E C O M P A N Y

The selected company is Netflix, which is a subscription-based DVD rental and streaming service that provides users access to an extensive library of movies & TV shows. Through its Web-based interface, subscribers can access Netflix on their computers, mobile devices (smartphones, tablets), and even on their TVs (through the use of peripheral devices, such as the PlayStation 3 gaming console). Once an individual subscribes to Netflixs monthly service, which costs $7.99 per month, they then have unlimited access to Netflix collection of titles. !!Since its inception in 1997, Netflix has shown an immense growth in its popularity , 1subscription base, and its Internet usage . After being charged a $40 late fee for Apollo 213 by Blockbuster, Reed Hastings founded Netflix with Marc Randolph. In addition to their immense collection of streamed content, which includes popular movies, television shows, and documentaries, the company has commenced the production of original content. Its original content, such as season 5 of Arrested Development, House of Cards, and Orange is the New Black, has experienced significant success and has aided to its increasing viewership in relation to traditional cable networks. As of 2014, Netflix is available in over 40 countries with approximately 44 million subscribers, and is watched more than any other cable network in the USA . At the moment, Netflix is 3currently responsible for almost one-third of all U.S. internet traffic (Sandvine, 2013). !Although the popularity of Netflix and the norm of having an account would make it appear to be in the Main Street/Conservative stage of the TALC lifecycle, statistics prove that it is actually in the Tornado. The Main Street phase is characterized by a company reaching maturity in its lifecycle and experiencing declining growth (MaRS, 2012). After an analysis of Netflix, it was clear that they were the market leader after the war for market share, and were far from the declining stage in comparison to their primary competitors, Hulu and Amazon Plus, Netflixs subscription rate showcased 7% growth in 2013 (in 2012, 31% of Americans accessed Netflix, whereas in 2013, 38% 4were actively using and subscribing to the service) (Levin, 2013). Although its original series, such as the hit series Orange is the New Black, are the primary contributors to

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Refer to Appendix C to see Netflixs financial performance throughout the past four years. 1

Please refer to Appendix A for a pie chart that showcases the percentage of Internet traffic 2generated by a specific service. Please refer to Appendix D to see a chart that highlights the growth of Netflixs subscription 3base throughout the years. Please refer to Appendix B for a line graph of the percentage of Americans that are subscribed 4to a media streaming service in 2012 and 2013.

Select a company to base your assignment on. Describe the company product or service oering. Describe where you believe the companys

product fits in the TALC.

raising expenses and decreasing revenues, the popularity and gained subscribers of its original content are providing an edge over the competition and expanding Netflixs business model. The Tornado represents the stage in the TALC where market development expands outside niche markets of the previous phase and a mass market is developed (MaRS, 2012). Previously, online streaming was only popular with and accessible by a certain niche market, but with its easy-to-use, convenient, and cost-efficient offering, Netflix has revolutionized the entertainment industry and has put many movie rental stores out of business, and online streaming has become the new mass market for at-home entertainment. Furthermore, with Netflix being in the Tornado stage, many pragmatists (characterized as those over the age of 37), who once delayed adopting Netflix, have now taken a liking to Netflix after becoming mainstream and penetrating the entertainment industry, Netflix has successfully captured the mass market . !5!

Q U E S T I O N T W O : T H E P E O P L E

Two customer segments have been identified: 1) The Binge Watcher, 2) The Controller. !!T H E B I N G E W A T C H E R !!

The Binge Watcher segment is comprised of price-sensitive youth and young adults, between the ages of 15-24. They include high school and post secondary students, as well as young professionals and recent graduates. A Binge Watcher is essentially someone who watches multiple episodes of a TV show or movie in one sitting. They primarily belong to Generation Y, and greatly value being a social butterfly as well as instant gratification (Feeney, 2014). !!In December 2013, Netflix conducted an extensive study to learn more about the binge watcher and 61% of the 1,500 TV streamers included in the study admitted to regular binge watching (PR Newswire , 2014). In this case, binge watching is defined as viewing 2-6 episodes of the same TV show in one sitting, and 73% of respondents had positive feelings towards the activity, with the majority of the 1,500 respondents preferring binge watching (as it is more enjoyable).!!With Netflix focusing on delivering an unlimited amount of content to users that can be accessed at anytime, the Binge Watcher segment, which is constantly growing, is a perfect fit to Netflixs value proposition of providing a convenient and completely limitless entertainment experience. In addition, with Netflix producing original content and releasing a full season at once, the Binge Watcher makes for an extremely attractive segment to be constantly engaged with the brand the creation of original

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Please refer to Appendix E for a chart of Netflixs popularity (against Cable, Satellite, Hulu, and 5Amazon) amongst American adults.

Identify two segments that Netflix can service. Describe the segment attributes, attractiveness, and fit.

content also adds to the growth of the Binge Watcher segment. Ted Sarandos, chief content officer of Netflix, stated that user data highlighted that customers preferred to have a whole season of a show available to view at their own pace, which is the model followed by their House of Cards and Orange is the New Black TV shows (Jurgenson, 2013). !While the Binge Watcher finds solace in being completely immersed in some sort of entertainment (in this case, TV shows and movies), they utilize this as a way of fitting into their social circle and a relaxation/distraction method from their busy lives. And Netflix greatly satisfies this need of the Binge Watcher segment they allow viewers to watch an endless amount of content on their own time. Furthermore, Netflix has specific embedded features that encourage binge watching for example, their Post-Play feature automatically queues and plays the next episode of the TV show that is being watched (note: as of January 2014, Netflix allows this option to be disabled). Through the implementation of features such as Post-Play, Netflix actively promotes binge-watching and caters to this segments need for instant gratification (Welch, 2014). !Finally, Netflix has been able to capitalize on the Binge Watcher the segment is proving to be a great fit to the company. Through the creation of its original content, the streaming giant has increased its overall user-friendliness and successfully catered to the needs of a generation that thrives off instant gratification. Two statistics greatly drive this point home: 1) 25% of an unspecified drama show finished an entire 13-episode season in just two days, 2) roughly 50% of Netflix users finish a TV show season (of 22 episodes) within 7 days (Jurgenson, 2013). !!

T H E C O N T R O L L E R !!Another customer segment that Netflix is able to capture is The Controller. The Controller segment is a much older crowd than the Binge Watcher they are typically between the ages of 27-44, have young children (below the age of 14), and live in dual income households. The Controller segment comprises of males and females that are well on their way of establishing families, lead fast-paced jobs, and actively control the content that both they and their children view and have access to. Because this segment has an extensive amount of disposable income, they are not as price sensitive as the Binge Watcher segment. Furthermore, they place a high priority on taking a vacation from their busy lifestyle and having some downtime, whether it be through spending time with the family in front of the TV or just watching a quick movie by themselves. !!The Controller has also proven to be an extremely lucrative customer segment for Netflix, as they have been able to successfully enter a large amount of family households. The segment has a positive fit with Netflixs brand, as these consumers value their individuality and being in control of what they see they do not enjoy abiding by traditional TV schedule, and through their Netflix subscription they can curate their own TV programming agenda.!!Finally, Netflix has integrated specific features such as user profiles, and parental controls to ensure that the user is in complete command of their viewing experience.

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These features are primarily used for family accounts, where there are multiple viewers for one paid subscription. Through the creation of individual user profiles, each person on the family account can have their viewing preferences taken into consideration. Based on their preferences, Netflixs algorithm works through the individuals viewing history and the history of subscribers with similar tastes to suggest new TV shows or movies to watch (Welch, 2014). Parental controls allow parents to specify what content 6their children have access to thus protecting them from watching explicit and unwanted content (Netflix, 2014). By specifying exactly which maturity level Little Kids, Older Kids, Teens, or Adults a specific user profile can access, The Controller segment is able to ensure that they remain in control of what is being viewed. !!!

Q U E S T I O N T H R E E : T H E M A R K E T P L A C E

Netflix is a subscription-based digital distribution service that operates on the Internet, where it provides streaming media to its 44 million subscribers. Complementing its media streaming offering, Netflix also has a DVD-rental service with a collection of over 100,000 titles.! !Due to the nature of the company, the majority of the service is provided online. It is not traditional in the sense that it does not have a producer-wholesaler-retailer-consumer model, much like companies that sell physical products. Although, that does not mean Netflix lacks intermediaries to bring its service to its consumer. In fact, to provide its service, Netflix must attain rights to all films and TV shows that they provide online; they must maintain partnerships with studios that give them the rights to this content (Vlessing, 2012). While Netflix continues to establish and strengthen relationships with studios, such as Universal Studios and 20th Century Fox, it has begun reducing its reliance on external partners and increasing its self reliance through the production of original content.! !In the past couple of years Netflix has started producing its own TV shows (i.e. Orange Is The New Black, House of Cards) thus they no longer have to attain the rights for content. As a result, they have started participating in the process of disintermediation; they are producing their own content and bringing it straight to the consumer (Kuittinen, 2013), as opposed to going through a number of intermediaries for the end-users consumption. !!The other important part of Netflixs content distribution is the Internet, which is essential for Netflixs ability to provide its streaming services. For a consumer to stream a title, the show must pass through a number of bandwidth companies to reach the user.

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Please refer to Appendix F to see which Parental Controls are available for The Controller. 6

Describe the companys market place position, traditional vs. market place, disintermediation, etc.

Broadband companies created peering agreements in order to ensure the reliable flow of digital media on the Internet, and they have agreed to carry each others traffic (Gustin, 2014). The peering agreements used to be straightforward and they operated on a principle of symmetry; telecom companies would agree to exchange delivery services in order to ensure that data, like phone calls, were routed across the country (Gustin, 2014) however, recently they have become more and more complex as Internet usage increases and the transferred data becomes increasingly complex. Intermediary companies, such as Cogent Communications and Level 3 Communications, helped deliver the Internet traffic to broadband companies, such as Verizon and Comcast. Unfortunately, due to the growth of Netflix and other high-bandwidth services, these agreements have become a huge problem. In recent months, the delivery speed of Netflixs content to its Comcast subscribers is reported to have declined by more than 25 percent, and customers of other providers, such as Verizon, have also reported delays. (Wyatt & Cohen, 2014) To address this issue, Netflix and Comcast reached an agreement on February, 23rd 2014, which will result in Netflix paying Comcast directly for faster and more reliable access to Comcasts subscribers. This deal is revolutionary; never before have content providers paid to access customers of a broadband provider. This new arrangement removes the need for other intermediary companies, allowing Netflix to deliver its content directly to Comcast.!! !

Q U E S T I O N F O U R : T H E M O N E Y

Netflix has a very simple revenue model that consists of subscriptions as well as traditional home delivery of DVDs. Their main emphasis is on acquiring and retaining subscribers to their digital streaming service, with a lesser emphasis on their home delivery (Forbes, 2013). Both Netflixs streaming subscription and DVD rental service cost $7.99 per month. !!One of the differentiating factors that make their revenue model superior to their closest competitor as well as traditional forms of DVD delivery is their ability to provide their customers a free 30-day trial. Although the free 30-day trial does not generate any revenue to the company itself, the prospect of providing a free trial reduces the risk to the user and ultimately facilitates the conversion of a potential customer to an actual customer. Since the user is required to enter their financial (such as their credit card details) and contact (such as their email) information prior to the 30-day trial, Netflix can contact them and engage in customer retention activities to ensure they transfer to a paying subscription once their trial is over. !!Furthermore, since Netflix would ideally offer flexibility to the users of their services, they also offer flexible payment plans if necessary on a case-by-case basis. For example, the Netflix family plan, which allows four simultaneous streams of viewing, costs $12 per month. However, since the advent of their original series, they have the unique opportunity to augment their revenue model to encompass other opportunities such as

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Describe the companys eBusiness revenue model.

the ability to content license as well as the potential to turn to traditional forms of multimedia such as a branded Netflix channel.!!Another part of their revenue model that is particularly interesting is their pricing strategy and how that fit into their revenue model. Initially, the pricing strategy that they established consisted of market penetration pricing, but as they matured and their competition intensified they transitioned to everyday low pricing to maintain their current market share. As of this moment, they have lowered membership fees to remain competitive relative to their largest competitors, specifically Amazon Prime, Hulu and Redbox (Alter, 2014). !!

Q U E S T I O N F I V E : T H E F L O W

Netflixs end to end order flow requires more steps than one might think. It is a complex set of steps, with users needing to meet a specific set of requirements for a transaction 7and streaming instance to be completed . !8!1.! Prior to streaming any of Netflixs content, the user must have a broadband

connection speed of roughly 0.5 megabits per second, or as Netflix recommends 1.5 megabits per second. In addition, specific operating system and browser requirements must be met. Also, the browser plugin, Microsoft Sliverlight, which provides a high-quality streaming experience for Netflix, must be installed to deliver video to web browsers. !

2.! Next, when a customer visits the Netflix website, to establish the most basic level of trust, a Site Certificate, or Hypertext Transfer Protocol Secure (https) is required, which is evident through the small, green lock icon and the URL starting with https. Also Netflix uses the W3C Web Cryptography API, which allows Netflix to encrypt and decrypt communication between our JavaScript and the Netflix servers. The API is required to protect user data from inspection and tampering (Kashyap, 2010).

3.! Once an individual decides to purchase a subscription or 30 day free trial of Netflix, the New Registration page requires inputting of information such as name, username, company details, address, etc. The buyers information must then be encrypted for security purposes while being transferred over the internet.!

4.! Trusted payment options are then available to the customer, such as Paypal and the major credit cards, American Express, Visa, and Mastercard. The payment information is then secured through VeriSign, ensuring Anti-Fraud (VeriSign , 2014). By choosing one of the payment options and completing the payment information

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Refer to Appendix G for a table that depicts the minimum requirements for Netflix access. 7

Please refer to Appendix H for a process chart that depicts the steps of a typical users 8transaction.

Describe the companys end to end order flow.

process, the customer gives Netflix authorization to receive the money. These authorizations are inquiries sent by Netflix to a financial institution to verify the payment method validity. Netflix can now bill the customer, temporarily reducing an available checking account balance or available credit at the financial institutions discretion (Netflix , 2014). !

5.! After successfully applying to Netflixs subscription service, the customer will be billed every month from that day. To explain the way in step 4 above in which the payment is processed through the gateway, the following 8 steps occur each time a new Netflix member signs up (eBay, 2014). !

I.! The customer enters their information when purchasing a subscription, including their credit card number or Paypal information. !

II.! Netflix sends the purchase details to the payment gateway to be processed.! III.! The payment gateway forwards the sellers bank the transaction information. ! IV.! The seller's bank forwards transaction information to the bank that issued the

buyer's credit card to authorize the transaction.!V.! The bank that issued the buyer's credit card either approves or denies the

transaction and sends that information back to the seller's bank.!VI.! If the transaction is approved, the bank will deposit funds on a merchant's

account at a scheduled time.!VII.! Netflix receives transaction details and a response from the payment

gateway.!VIII.! Netflix informs the buyer if the transaction was approved or denied .!

The transaction is now complete. The customer will automatically be billed monthly without the hassle of entering payment information through this secured system. Lastly, receipts will automatically be issued monthly to reconfirm with the users that the payments have gone through. !!

Q U E S T I O N S I X : T H E F A C T O R S

S O C I A L !!Socially, Netflix takes into consideration the amount of time that a user spends in the purchase decision (in this case viewing decision) of determining which movie/TV show would suit their preferences. With this in mind, Netflix has implemented the recommendation feature, which reduces the amount of effort and time required to make a decision, as a plethora of suitable titles are provided to the user. With the customer segments that Netflix targets being extremely time conscious, Netflixs recommendations is able to facilitate and simplify the purchase decision process, which significantly increases the convenience for users.!!

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Discuss some of the companys SLEPT Factors.

Another social factor that Netflix has is the disruption its created in the job market. Video distribution centres such as Blockbuster and Rogers closed all of their rental stores in 2012, due to the rising competition from Netflix. With the closing of these stores, many employees have lost their jobs and Rogers itself has been left with an immense amount of financial losses (Huffington Post , 2012) !!

L E G A L !!Digital piracy, which has become something of a norm on the Internet these days, Netflix must be aware of the threat that torrents and other illegal download methods of entertainment content. Torrents, which account for over 4% of total Internet traffic, greatly affect Netflix sales as they offer a free alternative to Netflixs service (Sandvine , 2013). Furthermore, the raising fees and changing price models of Netflix will likely lead to an increase in intellectual property violations and streaming from illegal sources.!!Net neutrality, which is the principle that no bit of information should be given greater priority over another, has become a pressing issue over the past year (Berkeley, 2014). Essentially, with net neutrality, Netflix would not be forced to be streamed at slower speeds than other websites and pay extra to have equal streaming speeds. With Verizon Communications recently winning a court case that allows the company to charge extra for faster content delivery, Netflix might have to adapt its pricing model to make up for the increased expenses the extra costs they incurred would be passed on to customers, thus the subscription fee would rise. To combat this issue, Netflix has been working towards decreasing the intensity of the traffic it sends to carriers by persuading them to install specific servers and network infrastructure. So far, only one network carrier has come forward in agreeing to Netflixs terms: Comcast. Comcast has agreed to connect directly to Netflixs servers, which will remedy the recent degradation in streaming performance over the Comcast network, for an undisclosed amount (Russell, 2014). !

E C O N O M I C !!The potential higher costs of doing business for Internet companies (Netflix, Google, YouTube, Amazon, etc.) from Verizons recent legal victory could drastically change the industrys economics. Through their recent legal victory, Verizon now has the ability to charge certain Internet companies extra for faster content delivery and preferential treatment. The expenses incurred by the Internet companies would then be passed on to the consumer, and analysts estimate that the current Netflix price of $7.99 would need to be modified they would have to pay $0.80 per user for standard definition video and as high as $4.80 per user for high-definition content (Moritz, 2014)!On the bright side of things, the increased pricing schemes of cable TV can drive consumers towards a Netflix subscription. As the price of alternatives increases, the perceived value of Netflix increases consumers can have much more control and greater accessibility for a cheaper price. And this is evident in the numbers, as Netflix added 3 million users to its streaming service, the cable subscription in the U.S. declined by 1.5 million individuals (Moore, 2013).!!

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P O L I T I C A L !!The Video Privacy Protection Act, or the VPAA, is a legal stipulation that bans the disclosure of video rental records without written consent (Wilhelm, 2012). Between 2011 and 2012, Netflix spent over $1,000,000 to lobby the act and created its own political vehicle, the Political Action Committee (PAC). In 2013, Netflix was able to successfully lobby the VPAA, which was considered a top priority. With the VPAA in place, Netflix users will be able to share their video viewing preferences through social media.!!

T E C H N O L O G I C A L !!Continuous developments and improvements to the Internet and video-streaming quality will provide Netflix with the opportunity to offer a higher-quality and more customizable experience for customers. Furthermore, the creation of new technological devices, such as tablets, wearable devices, etc., will increase the number of screens that Netflix can penetrate within a subscribers household. !!With the digital streaming industry constantly evolving, more and more companies will continue to enter this market with similar services giving Netflix more competition for marketshare. ! !!

Q U E S T I O N S E V E N : T H E V A L U E

!According to A.T. Kearney, a global management consulting firm, the average life span of current Netflix customers is 25 months (t) (Forbes, 2013). Since Netflix is an automatic monthly subscription, the purchase cycle is 12 times per year (c). There are currently two Netflix streaming subscription offers: 1) Basic $7.99, 2) Family $11.99; and their DVD rental service is offered for $7.99 (Netflix, 2014). The average of these three membership options is $9.32 (s). The average customer value is $111.88 (a) as it is the average subscription price multiplied by the number of payments per year. As stated in their financial results, Netflixs profit margin is 4.12% (p) (Y Charts, 2014). To determine the average gross margin per customer lifespan, the Simple LTV was calculated as $2,797 and 4.12% of that was $115.24 (m). The discount rate, which in this scenario was assumed to be the marginal tax rate, was found to be 11.1% in Netflixs earnings reports. Finally, since the churn rate was discovered to be roughly 40% (Gottfried, 2013)we determined the retention rate to be 60%.!!Based on the aforementioned numbers and the provided lifetime value formulas (KissMetrics, 2014), it was determined that Netflix should spend roughly $120.08 to

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How much should this company spend to acquire a customer?

acquire new subscribers, as each customer brings in $125.24 of revenue and with a profit margin of 4.12%, their profit per customer will be $5.18 . !9! !

Q U E S T I O N E I G H T : T H E R E L A T I O N S H I P

Netflixs tagline is Watch TV shows & movies anytime, anywhere, and theyve successfully embedded their value proposition into their branding initiatives. Their logo, which is reminiscent of the red curtains that would go up in old-school theatres and signage at the cinemas, invokes a nostalgic feeling amongst its older subscribers and infers an enjoyable and convenient entertainment experience for all users.!!One of the ways that Netflix has been able to find a niche in a world where illegal downloads are frequent and often go unpunished is their ability to provide service that is far superior than competitors. Netflix has created a very strong brand that revolves around a simple value proposition of providing an unlimited and always accessible entertainment experience. Their original value proposition was to provide customers with cheap and convenient access to their website and the content that they have available. However, since the business has seen exponential success in recent years it has been forced to change its value proposition from catering to those looking for cheap and convenient access to a user-friendlier platform that differentiates itself on optimization. One of the obvious features of this is new value proposition that they are trying to cultivate is the recommendations deck that incorporates previous viewing history and recommends feature films and TV shows that fall under similar classifications. Furthermore, Netflix has invested heavily into system optimization to increase the user-friendliness of their streaming platform, which has been met with rave reviews. One of the major areas of concern for users was that Netflix had many dud movies and users were constantly sifting through these tier 2 movies to get to the blockbuster hits. The recommendations tab has really been beneficial for this process as people are not looking as long to find a movie/show to watch.! !This change to a better platform has also helped them increase their retention and subsequently improved their relationships with their customers too. Their move to improve their CRM through a subtle, but necessary shift in their value proposition has really caused a swift upswing in subscription level. Resolving concerns is another area that Netflix has been able to ensure that their customer base is growing. They have a running survey on their platform that periodically asks you to confirm your preferences and this has the additional benefit of showing to their customers that watching interesting content to them is important to Netflix and that saving time while picking the correct film is of paramount importance. Netflixs robust CRM initiatives have allowed for users to create their own user profiles that can be studied and personalized recommendations can be provided. !

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To view our LTV calculations, please refer to Appendix I. 9

Describe the company's CRM strategy

!Touchpoints are equally important to Netflixs CRM processes. The interface that the technical team at Netflix has been able to cultivate is vitally important to how their CRM is implemented. Since Netflix has only one touchpoint for its subscribers to interact with, the actual interface, they have the unique ability to control virtually all aspects of it. Since the sole touchpoint is also closely related to the moment of truth (MOT), the two are easily controlled and they have provided Netflix with the chance to make user-friendly changes that significantly can change peoples MOT impressions about how they personally view Netflix. Since Netflix was developed and evolved in a social media era, many aspects that they have embedded in their interface. Netflix in all their wisdom and impeccable market acumen have mastered the art of successfully speaking to social media users by listening to their concerns, conversations and observing what contextual touch points drives their engagements (Hicks, 2013). The ability to rate titles and essentially remove genres that are of little interest to specific users has really helped them understand their users. The primary example that one can provide is the captivating hit series House of Cards, which was developed using very specific user metrics that helped them create the perfect hit series. Netflix had a wealth of data on user viewing habits which proved there's a large audience for David Fincher (the director of House of Cards), Kevin Spacey (the lead in the drama series) and political thrillers (Coyle, 2013). !!Finally, as previously mentioned, by drilling down with their data and creating hit shows that they have statistically determined to be hit, such as House of Cards, they have been able to enhance their value proposition to their subscribers. It is this sole factor that has led to a torrent of subscribers who specifically join to watch House of Cards. The added value is that there are millions of additional titles that Netflix can recommend to you for your viewing pleasure along with their original hit series that can only be viewed legally on Netflix. Collectively, the CRM that Netflix has utilized is very well positioned to adapt to the rapid changes that impact our society collectively today. They have placed quite a bit of emphasis on really understanding their clients through statistical analysis and ultimately this will benefit them in the long run through an increase in subscribership as well as large returns on original hit series.!!In order to support its CRM initiatives (such as sales, marketing, analytics, field service, e-commerce, etc.) , Netflix has an extensive amount of embedded softwares and 10hardware. Firstly, Netflix is a consistent user of Amazons cloud services, and has developed its own software programs to increase the reliability of the cloud hardware. Its Chaos Monkey software randomly takes Amazons virtual machines offline and allows engineers to determine network issues (Brodkin, 2012). In the same week that Chaos Monkey was released, Eureka, which provides load balancing and failover services for Netflixs middle-tier services, was also released (Brodkin, 2012). Secondly, Netflix has partnered up with Teradata, an analytics data platform, applications, and services company. Through this partnership, Teradata provides Netflix with a cloud environment that can be used for complex data analyses. Many of Netflixs analysts will be utilizing Teradatas hardware to examine critical consumer data and determine opportunities that can be leveraged to drive Netflix forward (Teradata, 2013). !

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Please refer to Appendix J to view Netflixs customer relationship management mind map.10

!!!!R E F E R E N C E S

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Berkeley. (2014). Network Neutrality . Retrieved 02 27, 2014, from Berkeley: http://www.ocf.berkeley.edu/~raylin/whatisnetneutrality.htm

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Hicks, L. (2013, 01 23). Socialytics Part 3 - Touchpoints . Retrieved 02 20, 2014, from MatterMax Media: https://www.mattermaxmedia.com/resources/todays-marketing-blog/item/181-socialytics-part-3-touch-points.html

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Kashyap, V. (2010, 08 23). What is an API and what are they good for? Retrieved 02 20, 2014, from MakeUseOf: http://www.makeuseof.com/tag/api-good-technology-explained/

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Moore, J. (2013, 04 30). Why Netflix Is Smashing The Competition: It's The Economy. Retrieved 02 20, 2014, from The Motley Fool : http://beta.fool.com/jgmoorejr/2013/04/30/why-netflix-is-smashing-the-competitionits-the-eco/32504

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