Netflix Annual Report
The annual report filed as a form 10-K offers investors a detailed look at a company's operating and financial results and, as a result, is an invaluable tool for anyone interested in a company's financial picture. As a publicly-traded company, Netflix is required to submit a form 10-K to the U.S. Securities and Exchange Commission (SEC) and send it to shareholders. The SEC requires the report to conform to a specific format, ensuring that every public company reports the same information. There are several main sections of this report.
The first item in this section describes the business the company engages in, including main products and services it offers and the markets in which it operates. This section also covers several other areas pertaining to the business, such as risk factors that affect the company or its securities. The SEC staff may have previously filed reports about the company's statements that have yet to be resolved and these would also be listed in this section. Any physical properties that the company owns and any pending litigation involving the company are also listed in the first part of the annual report ("How to Read a 10-K," 2011).
Part two of the report focuses more on the financial aspects of the business. The first item lists all the equity securities a company has, including market information, number of holders of outstanding shares, dividends, stock repurchases, and other similar data. The next item provides selected financial information for the last five years, while the company's perspective on the previous fiscal year is related in the next section. The company may explain the risks that currently confront them in the marketplace, contractual obligations, or estimates that are not available elsewhere in the report. The next section...
Netflix Analysis Industry Drivers The intent of this analysis is to discuss the key industry drivers that are creating opportunities and threats for Netflix (NASDAQ: NFLX), in addition to defining the future of the mail-based and online movie rental subscription service. Competition from Video-On-Demand (VOD) services offered by cable television companies including Time Warner Cable, Comcast and others, combined with kiosk delivery network Redbox and the vertical integration of Blockbuster are fundamentally
According to the article listed above, what were the most important strategic moves that propelled Netflix’s successful international expansion? According to the article the most important strategic moves related to Netflix’s expansion were associated to its planning. First, Netflix did not attempt to enter all markets simultaneously. Instead, it elected to enter into markets that shared many of the same market characteristic of the United States. Namely, the company was looking
Netflix External and Internal Environments Netflix is a video rental store that was founded in 1997 in Scotts Valley, California by Reed Hasting and Marc Randolph. The corporation’s business model is centered on mailing DVDs to its customers as well as providing online rental of videos. For its mailing services, Netflix uses its 35 warehouses across the United States. Since its inception, the company has continued to leverage on technology to
Organizational Context Netflix is an entertainment company based in the United States that specializes on online on-demand streaming video, in addition to a DVD-by-mail service in America. The organization was founded in Scotts Valley in 1997 and two years later began its prevailing consumer subscription model. In the present day, Netflix’s consumer base comprises of more than 117 million subscribers in 190 nations across the world. Netflix are a forerunner in
Principles of Finance Netflix’s income statement showcases a company with rapidly growing revenues. In FY17, the company earned revenues of $11.7 billion, and this grew to $15.8 billion in 2018 and $20.1 billion in FY19. The company was only marginally profitable in 2016, but its profits have grown to nearly $1.9 billion in FY19. Again, this is strong growth, and would be viewed quite positively by investors. Indeed, the company’s earnings
3% decline. The decrease in gross margin was primarily due to an increase in postage rates effective May 2007 and a reduction in the prices of Netflix's most popular subscription plans during the second quarter of 2007 caused by increased competition. The company is anticipating further pressures on gross margin in 2008 due to continued price competition and another slight increase in postage rates. The company is anticipating a shift from
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