Organization
Mission
“to grow our streaming subscription business domestically and globally” (“Netflix,”n.d., para 1). Netflix is determined to create a streaming service that would encompass the demands of viewers all at once in terms of availability and content variety.
Vision
Netflix’s vision is “becoming the best global entertainment distribution service” (“Netflix,” n.d., para, 2). This vision statement encompasses both customer satisfaction and the support provided to content creators worldwide.
Values
- “Judgment
- Communication
- Curiosity
- Courage
- Passion
- Selflessness
- Innovation
- Inclusion
- Integrity
- Impact” (“Netflix,” n.d., para. 3)
Structure
The structure of the Netflix streaming service is a U-form organizational structure that stands for a unitary form that has an established hierarchy from the top management to functional divisions. Thus, the corporate structure of Netflix includes functional units responsible for operations such as legal, finance, communication, and others, geographical divisions, and product/operations division (Anderson, 2019). When operating with a limited number of hierarchical levels, Netflix aims at reducing the communication gap between functional units and the CEO.
Culture
Core philosophy: “people over process” (“Netflix culture,” n.d., para. 4)
- “encourage independent decision-making by employees
- share information openly, broadly, and deliberately
- are extraordinarily candid with each other
- keep only our highly effective people
- avoid rules.” (“Netlfix culture,” n.d., para. 3)
Analysis
Considering the extent to which Netflix values entertainment, the primary focus should be placed on customer satisfaction rates. According to two studies conducted in Indonesia, the Netflix algorithms of streaming and customizing user experience and interface contribute to customer satisfaction and brand loyalty (Tjhia, 2021; Martins & Riyanto, 2020). Customers receive recommendations tailored specifically for their interest, indicating the match percentage. Viewers are also encouraged to modify the size and appearance of subtitles and automatic playback of the episodes. As a result, these customization tools contribute to the viewers’ attachment to the service, creating a significant competitive advantage in the streaming market.
As far as the company’s focus on accessibility is concerned, Netflix allocates costs on purchasing and producing original content. As of 2021, Netflix spent nearly $17 billion on content (Stoll, 2021). According to the preliminary estimates, approximately 35% of the total cost is spent on creating original shows and motion pictures, whereas the rest is allocated to amortized payments for the purchased, licensed content (Spangler, 2021). Considering the variety of existing choices, Netflix’s streaming library aligns with the mission to grow globally, as currently, even original content is created outside the domestic country.
Netflix pays specific attention to the idea of inclusion and social responsibility of the enterprise. For this reason, some of the original content streamed on Netflix presents a significant educational value for the consumers, as Netflix sponsors the production of various documentaries and shows that raise awareness on global social issues such as discrimination, violence, and mental health. For this reason, the company pursues its values in terms of inclusion when it comes to content and corporate culture. According to the Netflix Jobs website, “better representation on-screen starts with representation in the office” (“Inclusion & diversity,” n.d., para. 1). Netflix, the workforce is comprised of nearly 50% of women, and racial and ethnic minority representatives present an example for many large enterprises (Myers, 2021). Thus, the corporate strategy chosen by the company is compatible with the values it manifests.
Currently, the monthly subscription fee for Netflix varies between $10 and $20, depending on the quality of the streaming. Currently, there are no benefits, sale options, or family subscription plans, as premium subscription only handles four screens that can be used simultaneously. In such a way, Netflix tries to avoid any type of subscription speculation and sharing one account with multiple users. However, when it comes to global sustainability, the company justifies its subscription fees across the countries. For example, if a premium subscription in France is €17, the cost in Russia or any other Eastern European country will vary between €10-12. Moreover, some licensed shows vary depending on the location, responding to the average user’s expectations. Hence, it becomes evident that Netflix is an extremely beneficial service when it comes to the adjustment to user preferences.
However, when it comes to shows’ availability, there are several issues in terms of voiceover and audio description. The latter, allowing sightless people to enjoy the content, is available for limited TV shows and movies, whereas the subtitles and voiceovers are frequently available only in the original and English languages. In order to address this issue, the company should contract translators and outsource subtitling so that people would have more options for their fees.
It is common for the users to ponder their Netflix experience due to the lack of new and popular TV shows or movies and the sudden disappearance of their favorite content because of licensing issues. However, the user-friendly and ad-free experience still makes the streaming service more consumer-oriented. It is especially relevant to Netflix’s ability to support a user-friendly interface for any type of device. Hence, considering the existing benefits and drawbacks of the company’s services, it can be concluded that Netflix pays much attention to its goal to align with the mission statement and acclaimed values. Moreover, sensitivity to user preferences makes Netflix a priority streaming service for dozens of countries worldwide.
Citations
Anderson, D. (2019). Netflix Inc.’s organizational structure & its strategic implications. Rancord Society. Web.
Inclusion & diversity. (n.d.). Netflix Jobs. Web.
Martins, M. A. J., & Riyanto, S. (2020). The effect of user experience on customer satisfaction on Netflix streaming services in Indonesia. International Journal of Innovative Science and Research Technology, 5(7), 573-577.
Myers, V. (2021). Inclusion takes root at Netflix: Our first report. Netflix. Web.
Netflix culture. (n.d.). Netflix Jobs. Web.
Netflix. (n.d.). Comparably. Web.
Spangler, T. (2021). Netflix’s amortized content spending to rise 26% to $13.6 billion in 2021, analysts project. Variety. Web.
Stoll, J. (2021). Content spending of Netflix worldwide from 2016 to 2021. Statista. Web.
Tjhia, J. S. (2021). The influence of brand experience, customer satisfaction, brand love, and brand trust towards brand loyalty: The case study of Netflix in Indonesia (Doctoral dissertation, Universitas Pelita Harapan).