You have no items in your shopping cart.

Netflix, Inc.: The Customer Strikes Back
Venkatesan, Rajkumar; Shively, Daniel Case M-0834 / Published July 30, 2012 / 7 pages.
Format Price Quantity Select
PDF Download
$6.75
EPUB Download
$6.75
Master Hard Copy
$7.00
Student Hard Copy
$7.00
Copyright Permissions
$3.75

Product Overview

This case is an updated version of "Netflix Inc.: DVD Wars" (UVA-M-0763), and was written as a replacement for it. A financial analyst is asked to appraise the value of Netflix's stock at a time of unprecedented turmoil for the company. This case introduces customer lifetime value (CLV) as a useful metric for subscription-based businesses.

Learning Objectives

Compare single- and multiformat business models. Show that events outside the market can sometimes challenge a business model. Show how technology affects industry dynamics and management decision making in real time. Show how obscure pricing can be used to impede interfirm comparison. Introduce CLV, emphasizing that it could be a dynamic instead of a static measure. Connect CLV with its importance to the rental business model. Demonstrate the value of tracking customer metrics and evaluating the long-term net worth of a firm. Contrast the market capitalization and CLV-based valuation of a firm and how that affects business strategy. Examine management based on the CLV metric-the importance of retention and net margin and what drives them.

  • Overview

    This case is an updated version of "Netflix Inc.: DVD Wars" (UVA-M-0763), and was written as a replacement for it. A financial analyst is asked to appraise the value of Netflix's stock at a time of unprecedented turmoil for the company. This case introduces customer lifetime value (CLV) as a useful metric for subscription-based businesses.

  • Learning Objectives

    Learning Objectives

    Compare single- and multiformat business models. Show that events outside the market can sometimes challenge a business model. Show how technology affects industry dynamics and management decision making in real time. Show how obscure pricing can be used to impede interfirm comparison. Introduce CLV, emphasizing that it could be a dynamic instead of a static measure. Connect CLV with its importance to the rental business model. Demonstrate the value of tracking customer metrics and evaluating the long-term net worth of a firm. Contrast the market capitalization and CLV-based valuation of a firm and how that affects business strategy. Examine management based on the CLV metric-the importance of retention and net margin and what drives them.