Wednesday, November 19, 2008

Netflix and Maghound

I am going to speculate if Maghound will be successful or not based on observing Netflix's success. I will identify successful components of Netflix and compare it to Maghound to see if those elements are available in Maghound. This outline is not finalized form and it surely needs more organization, but here's what I have so far.


1. History of Netflix
A. Brief description of Netflix
- It is the world’s largest online movie rental service, with more than eight milion subscribers.
- For low monthly price, members can watch movies and television episodes online, and they can also get DVDs delivered to their house.
- There are no due dates or late fees.
- Growth history for past years.
B. From beginning to present: how Netflix was developed and gained popularity

2. Success of Netflix
A. Q3 2008 Financial Results show that Netflix has been doing well despite a challenging economic environment.
B. Subscribers: Subscribers rose 23 percent from last year.
C. Revenues: revenue grew 16 percent compared to last year.
D. More data will be added.

3. Why is Netflix successful?
A. Number of collections available: more than 100,000 DVD titles and more than 12,000 choices that can be watched instantly
B. quickness: 95% of Netflix members live in areas that generally receive shipments in one business day.
C. user-friendly interface: very easy to surf the web and order DVDs.

4. Future of Netflix
A. Next week, Netflix will launch movie services on XBOX 360
B. There is no direct competitor for this business.

5. Is the successful components of Netflix also available in Maghound?
- This part will probably be the most important part of my paper. Also, it should be the most insightful. I have to do more research to figure this part out.

6. Possible Scenarios of what could happen.


My major concerns

- After the individual conference, I received a very intriguing idea, which is to consider itune as well. However, after researching, I realized that itune is not too similar to Netflix and Maghound. For now, I’ve decided not to include analysis of itune for my paper. Do you think Itune is relevent to my research topic?

- I am writing this paper on the assumption that Netflix and Maghound have similar business models. However, movie business and magazine business certainly have different aspects needed for success. Is it safe to speculate Maghound's success based on Netflix's successful elements?

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