14 May Business 400 Netflix
- Please write the Netflix “CEO’s Letter to Shareholders” for December 31, 2011 (the case period).
- Also, please write a memo addressing this scenario: Put yourself back in the year 2000 in the Blockbuster CEO’s office.
- How much would profit fall if you eliminated all late fees?
- How much would profit fall if chose not to cut late fees and lost some customers to Netflix in the following two years as a result?
- Based on these calculations, what would you have done?
- What threats does Netflix face today?
- Why did Netflix propose splitting into two companies?
- Was it a bad idea or a good idea executed badly?
- Why did Netflix not face many other competitors in the DVD-by-mail business?
- Why didn’t other firms succeed in challenging them?
1-2 page memo
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