Netflix, Inc.: The Mouse Strikes Back

7 Pages Posted: 4 Sep 2019

See all articles by Rajkumar Venkatesan

Rajkumar Venkatesan

University of Virginia - Darden School of Business

Shea Gibbs

University of Virginia - Darden School of Business

Daniel Shively

Independent

Abstract

In 2017, Disney announced that in 2019 it would launch Disney Plus, a subscription-based streaming video service that promised to rival Netflix, the dominant player in the market. This was the latest advancement in the history of movie rentals, which had first exploded in the 1980s with the advent of videotape and had gone through several technological transformations before reaching the age of streaming in the 2010s. At the time of Disney's announcement, Netflix dominated the market due to its ever-improving algorithmic recommendation system and its investment in original content. How would Netflix withstand the competition from Disney? What would be an appropriate measure of relative strength for a streaming service? This case offers a way in to discussions of customer lifetime value, market capitalization, and discounted cash flows, as well as the role of technological change in business models and firm valuation techniques.

Excerpt

UVA-M-0975

Aug. 23, 2019

Netflix, Inc.: The Mouse Strikes Back

Mickey Mouse had plans to join the streaming game.

In 2017, the Walt Disney Company announced it would launch a competitor to online video purveyors like Netflix in the next several years.

Disney Plus would be a paid subscription service offering access to all Disney and Fox Corporation content, along with new shows and movies and including 100% of the Marvel, Lucasfilm, Pixar, and National Geographic catalogues. Disney would also house its latest acquisitions, Hulu and ESPN Plus, on its new, web-based streaming platform.

. . .

Keywords: Netflix, Disney, streaming video, recommendation systems, video on demand, DVD, data mining, algorithm, customer lifetime value, subscription services, collaborative filtering, market capitalization, competition, marketing analytics, data analysis

Suggested Citation

Venkatesan, Rajkumar and Gibbs, Shea and Shively, Daniel, Netflix, Inc.: The Mouse Strikes Back. Darden Case No. UVA-M-0975. Available at SSRN: https://ssrn.com/abstract=3445954

Rajkumar Venkatesan (Contact Author)

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Shea Gibbs

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Daniel Shively

Independent

No Address Available

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
305
PlumX Metrics