Netflix‘s major individual shareholder is Reed Hastings, co-founder, and CEO of the company, with a 2.09% stake, valued at over $4 billion. Netflix is among the most valuable brands with its subscription-based business model and a streaming platform with over 193 million global members, as of Q2 2020. Netflix business model runs only premium content on its platform, driven by its Netflix Originals shows.
Netflix top shareholders
The list of Netflix top individual and institutional shareholders (Data Source: Netflix Financials).
More on Netflix Business Model
Netflix is a subscription-based business model making money with three simple plans: basic, standard, and premium, giving access to stream series, movies, and shows. The company is profitable, yet it runs on negative cash flows due to upfront cash paid for content licensing and original content production.
Binge-watching is the practice of watching TV series all at once. In a speech at the Edinburgh Television Festival in 2013, Kevin Spacey said: “If they want to binge then we should let them binge.” This new content format would be popularized by Netflix, launching its TV series all at once.
Coopetition describes a recently modern phenomenon where organizations both compete and cooperate, which is also known as cooperative competition. A recent example is how Netflix streaming platform has been among the major customers of Amazon AWS cloud infrastructure, while Amazon Prime has been among the competitors of Netflix Prime content platform.
Netflix is a streaming company, which revenues come from subscriptions of its streaming services. By Q2 2020, Netflix counted over 193 million subscribers. And in the first months of 2020, it made almost twelve billion in revenues.
Netflix is among the most popular streaming platforms, with a subscription-based business model. The brand, platform, and content are strengths. The volatility of content licensing and production are weaknesses. The streaming market is a potential blue ocean. Inability to attract and retain premium members, and its fixed long-term costs are threats to its business model.
Netflix is a profitable company. It generated over $1.2 billion in 2018, a 116% increase compared to 2017, primarily driven by substantial growth in paid memberships. However, Netflix has negative cash flows as it invests massively on content license agreements and original content.
Read Also: Netflix Business Model, Netflix Content Strategy, Netflix SWOT Analysis, Coopetition, Is Netflix Profitable.
Read More:
- Business Models
- Platform Business Models
- Digital Business Models
- Business Strategy
- Value Proposition
- Marketing Strategy
- Brand Building
The post Who Owns Netflix? appeared first on FourWeekMBA.
