Netflix

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🧩 Business Model Canvas

Key Partners

• Studios and production companies worldwide
• ISPs hosting Open Connect servers inside their networks
• Device makers: smart TVs, consoles, set-top boxes
• Telcos bundling Netflix into their plans
• Ad-tech partners for the ads tier

Key Activities

• Content production and licensing (~$17B/year)
• Personalization — ranking what 300M people see first
• Global streaming delivery via Open Connect
• Subscriber lifecycle: pricing, tiers, win-back
• Now: ad sales and measurement

Key Resources

• The content library — owned originals and IP
• 25+ years of viewing data
• Open Connect — a private global CDN
• A brand synonymous with streaming itself

Value Proposition

• Unlimited on-demand entertainment for one flat price
• Originals you can't watch anywhere else
• Works on every screen, resumes anywhere
• No contract — cancel in two clicks

Customer Relationships

• Fully self-serve — no sales, no support-heavy loops
• The recommendation feed IS the relationship
• Profiles personalize one account for a whole household
• Transparent tiering: ads, standard, premium

Channels

• The app pre-installed on virtually every screen sold
• Telco and pay-TV bundles worldwide
• Trailers and clips as social-media content engines
• Word of mouth around hit shows — the real channel

Customer Segments

• 300M+ households across 190+ countries
• Price-sensitive viewers on the ads tier
• Families sharing one account across profiles
• Advertisers — the newest paying segment
• Local-language audiences (Korea, India, MENA…)

Cost Structure

• Content amortization — by far the biggest line
• Technology and development
• Marketing (launch spikes around tentpole releases)
• Streaming delivery — cheap, thanks to Open Connect

Revenue Streams

• Tiered subscriptions — the $39B core
• Advertising on the cheaper tier (fast-growing)
• Extra member fees from paid sharing
• Licensing, merch, and games (small, strategic)