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Marketing Research Report. The data results showed us the motivations for subscribing to Netflix would be new releases and better selection. This was also one of the reasons people were discouraged from subscribing to Netflix.

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Introduction

Marketing Report FINAL Prepared For: Netflix International Prepared By; Amanda Chau, Greg Harrison, Andrew Penner, Karl Kelner, Reese Berg and Susanne Martin December 13, 2011 Table of Contents Executive Summary.......................................................................................................3 Introduction....................................................................................................................3 Company Profile............................................................................................................4 Research Objectives.....................................................................................................5 Methodology..................................................................................................................5 Limitations.....................................................................................................................6 Participant Profile..........................................................................................................6, 7 Results / Assessment....................................................................................................8-13 Conclusion....................................................................................................................14 Survey Appendices Executive Summary Netflix is looking to target a new market of subscribers for its home movie division in Canada. After the initial meeting discussing the wants and needs of the company we prepared a fifteen question survey (questionnaire) and conducted 100 during a two day period. We gathered the information from the questionnaire, inputted the data and analyzed the results. Our research has shown that the majority of people are currently viewing movies are doing so through cable or satellite providers. We also found that the largest segments of Netflix subscribers are were between the ages of 18-25. The data results showed us the motivations for subscribing to Netflix would be new releases and better selection. This was also one of the reasons people were discouraged from subscribing to Netflix. We found that if Netflix were to look in depth into the possibility of adding new releases and broadening their selection perhaps by adding an a la carte feature they would have a new segment of the market to tap into. Our research also showed a lack of popularity amongst the older consumers (Ages 50-64), these consumers also have the highest disposable income it might be worthwhile to investigate the reasons behind this further. Clearly the company has a large sector of the home movie business however this would be a new area to dominate. If Netflix built on the information our company has provided by increasing the survey demographics and the number of surveys they could further narrow down the specific markets they should be targeting. Introduction Netflix approached our firm looking for ways to increase their market share in Canada in the internet subscription industry. ...read more.

Middle

While both these answers do help in figuring out what else people want out of Netflix, these answers have a very low significance due to how little number of times they were selected as a respondents answer. The information discovered about people's motivation to subscribe to Netflix is very important. As it is the basis for our objectives that we needed to develop more information on this topic. We ran a cross tabulation between 'Motivations to Subscribe to Netflix' and 'The Method You Use Most to View Your Movies'. This cross tabulation will show Netflix the best way to decide the method they should use to enhance their programming. Now due to Netflix knowing what motivations people would like to subscribe (learning this through our research), the next thing they need to know is how people view these reasons, mainly addressing the issue of new releases because of its response popularity in our research. The most popular response to this cross tabulation was 'New Releases' as the motivation to subscribe, and 'Household Cable or Satellite Provider' as 'The Method Most Used to View Movies'. These results could have happened for a couple reasons. The two main reasons being cost and convenience. People who do not own Netflix are having fewer and fewer options to view movies from the comfort of home due to video stores going out of business. This leaves only a couple options in viewing movies. Going to the theatre is a big option, which has become very expensive, and is difficult to take a whole family for a reasonable price. Another reason could be that people just want to stay in the comfort of their home to watch movies. Watching movies through the household cable or satellite provider just becomes the easiest and most convenient for people to view their movies. Another interesting piece of data we found in our research for 'The Method You Use Most to View Your Movies' is how popular the 'Other' option was. ...read more.

Conclusion

With the availability of new releases being a dominant factor in the decision to subscribe or not subscribe, it is plausible that a perceived lack of new releases may have contributed to the ultimate decision of survey participants to not subscribe. A survey participant's price sensitivity may either drive that survey participant towards Netflix or towards entertainment alternatives they place higher value on (e.g. Subscription to a Winnipeg Jets game package). Geographic area greatly influences demographic data and, consequently, further marketing research may be desirable if markets outside Winnipeg are in need of demographic and subscriber profile data. If we were to research outside of the Winnipeg area, our findings would differ and we would get a different perspective on how people view movies. If Netflix was to further their research, we recommend that they expand their research into different geographical areas. Our research was mostly conducted with people ages 18 to 25. Amongst these participants they were more likely to subscribe to Netflix, despite having lesser incomes than older participants. Netflix is loosing out on this older market, who are able to purchase a subscription, however are not motivated to do so. We recommend that Netflix further extends their research to focus groups examining why those aged 35 and older are not subscribing to the same extent as young survey participants is recommended. High income individuals were also less likely to subscribe, something which future qualitative research could explore in more depth. By doing these focus groups, we would be able to identify the real motivations and discouragements. These older demographic groups are an opportunity for Netflix to increase their target market. If Netflix offered an a la carte selections or bundle option to their membership they might encourage new subscribers and garner a larger share of the market. A new marketing strategy incorporating our key findings and/or further marketing research conducted as part of a new marketing strategy may allow Netflix to increase its market share in the online media streaming and video entertainment segments in Canada. 17 17 ...read more.

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