IS3320 Developing and Using Management Information Systems Lecture 3: Trends in IT-based markets 2: the case of Netflix

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IS3320 Developing and Using Management
Information SystemsLecture 3 Trends in IT-based
markets 2 the case of Netflix

• Rob Gleasure
• R.Gleasure_at_ucc.ie
• www.robgleasure.com

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IS3320

• Todays lecture
• Netflix
• What happened?
• What going to happen next?
• What should they do from an MIS perspective?

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Netflix what happened?

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix what happened?

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix what happened?

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix c.2014

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix c.2014

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix c.2014

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix c.2014

• Slide from Netflixs Success through Technology
  and Culture - Andicom 2014, Mikey Cohen , Senior
  Software Engineer at Netflix on Sep 04, 2014

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Netflix c.2014

• Multiple new TV shows introduced, e.g.
• House of Cards
• Hemlock Grove
• Orange is the New Black
• As well as multiple lifelines to dropped TV
  shows, e.g.
• Arrested Development
• The Killing
• Move from provider to producer

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Netflix in 2016

• Available in over 190 countries
• Ober 83 million members
• But slowing growth
• Only 1.68 million subscribers added last quarter
  (30 less than predicted and almost 50 less than
  same quarter last year)
• Letter to shareholders remarks
• We are growing, but not as fast as we would like
  or have been. Disrupting a big market can be
  bumpy, but the opportunity ahead is as big as
  ever and we continue to improve every aspect of
  our business.

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Whats going to happen next?

• What type of consumer makes up the big market
  segments in the film and TV consumption market
  and what do they want?
• Who are Netflixs competitors?
• What do Netflix offer consumers that their
  competitors dont, and vice-versa?
• What market segments are likely to grow most
  quickly?
• What do these emerging market segments want?

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What should Netflix do?

• Do Netflix have IT capabilities they are not
  currently using?
• Are there emerging IT capabilities that might be
  relevant to the film and TV consumption market in
  the future?
• Are Netflix missing important IT capabilities
  (but not competitors)?
• Who is Netflixs biggest competitor going
  forward, and what should Netflix do to
  maintain/improve their market position?
• What would you do if you were introducing a
  competing company in this space?

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Assignment

• Design a new product or service based on
• Real-world evidence of an opportunity or need.
  This should make use of
• Your own circumstances
• Internet research
• Discussions with potential users
• An explicit matching of IT capabilities to this
  opportunity/need
• A critical analysis of the target market

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Assignment

• Your report should
• Be approximately 2500 words in length
• Include at least one use case diagram, one
  process flow for a key use case, and a
  context-level DFD
• Be interesting
• The provisional date for this will be 24th
  November
• This can be moved around if it clashes with
  other deliverables

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Want to read more

• Article on Netflix as disruptors, 2011
• https//hbr.org/2011/09/netflix-bold-disruptive-in
  novation
• Article on the simplicity of the Netflix business
  model
• http//www.forbes.com/sites/timworstall/2011/06/21
  /netflix-its-hardly-a-new-or-original-business-mod
  el/5d12477c2104
• Netflix letter to shareholders, July 2016
• http//files.shareholder.com/downloads/NFLX/286332
  2367x0x900152/4D4F0167-4BE2-4DC1-ACC7-759F1561CD59
  /Q216LettertoShareholders_FINAL_w_Tables.pdf
• Commentary on slow growth
• http//fortune.com/2016/07/18/netflix-stock-earnin
  gs/