Netflix on Demand Marketing Plan Group # 8
1. Executive Summary
Netflix has become the leading company in entertainment streaming services in the world. The
company committed product cannibalization over a decade ago when they created the streaming
subscription service that overshadowed their DVD rental service; however, the DVD rental
service is still highly profitable. The company’s DVD.com DVD rental business has 3 million
subscribers and generated a whopping $56 million in profit on just $99 million in revenue during
the first quarter (Reisenger, 2018). Although the DVD rental is still retaining a marginal profit,
this tangible DVD to home industry is becoming obsolete and is expected to become unprofitable
within the next decade. On top of that Netflix is going to face its biggest competitors thus far.
Subscribers will have choices of Disney+, HBO Max, and the improved Hulu and Amazon