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Netflix is fast becoming a giant behemoth in Internet Television, streaming movies, documentaries and originally produced series directly to consumers through internet. Netflix thrives on a subscription based model with price point comparatively cheaper to traditional modes of entertainment.

As per Netflix 2017’s Annual Report, Netflix had

117 million streaming memberships
With subscriptions in 190 countries globally
With subscribers enjoying more than 140 million hours of television through Netflix per day

With increasing internet penetration with higher bandwidth and speed, Netflix has leveraged the growth in internet connectivity to provide on-demand television series with the ability to pause, rewind and download movies on mobile enabled devices.

Netflix has disrupted the traditional movie industry by venturing into original feature film production streamed directly through its Netflix apps on televisions globally, slowly killing the need to travel to movie theaters to watch movies or renting DVD’s for doing the same.

One of the prime reasons for Netflix’s success has been to cater to viewers needs by investing in programming and series. Netflix is also catering for the needs of various geographical mix of viewers with more original content each day than ever before at a price point which makes it very alluring for ongoing subscription.

Netflix has been differentiating itself through increasing and varied content choices catering to different segments of the population and demographics. The companies focus on quality programming, the ease of use its applications and availability of content online or offline (through download) providing a 24*7 entertainment window, its move into original programming including nominations and award (Emmy, Golden Globe and Academy Awards) has been its key differentiators.

This is well supported by its investment in technology and futuristic technology architecture which has enhanced its brand.

Source: Netflix 2017 Annual Report

“Google is not a conventional company. We do not intend to become one.”

Larry Page & Sergey Brin

About Alphabet and Google

Founded in 1996 by Larry Page and Sergey Brin, Google is unconventional to say the least having changed the way we view “search”. Google has become synonymous with ‘search’ and much more. Having changed the way we look at a company with its constant focus on innovation through its “other bets”, Google was re-organized into a conglomerate as a leading subsidiary of the umbrella company, Alphabet on October 2^nd 2015. As a part of the re-organization, Google stock ticker symbols ‘GOOG’ and ‘GOOGL’ was changed to Alphabet’s stock.

Google and Alphabet as its parent is an Information technology company having democratized information making it available to everyone through its search engine.

Business Model

With the re-organization of Alphabet as a parent company of Google and creating a separate subsidiary for its “other bets’, Alphabet has given a clear indication to focus on revolutionary innovation.

Alphabet reports its business results under two buckets

Google and
All other businesses under ‘Other Bets’

Google has created a platform for connecting people through sharing and dissemination of information through its various platforms such as the Android ecosystem, its search engine, Chrome browsers and its YouTube platform.

Apart from focusing on its core business expanding on “Google search” and covering its Android ecosystem and Chrome, Google continues to invest on ‘Moonshots’ as it called it which were seeds of business which Google saw as opportunities from a long term perspective. This is an important facet that differentiates the company. Some of these moonshots has been re-organized into ‘Other Bets’ while the majority continues to function under Google.

Google has become synonymous with “Search” with a massive brand following. When people search for information on the Internet, they ask to “google it”.

Advertising through Internet and mobile ecosystem is the primary source of revenue for Google. This is integrated through its products such as

Maps
Google Play
Gmail
Search
Chrome
Android
YouTube

Innovation is a key to success at Alphabet and its subsidiaries. Alphabet’s other bets are early stage businesses with future potential that the company sees potential in. Google in turn release several early stage products driven by trends and growth prospects in the long term. Some of these might seem spec
ulative in nature, but it’s an essential element of how Alphabet sees its business model.

Technology being an industry with constant change and fast innovation, Alphabet sees it imperative to drive innovation through these initiatives, which is a differentiator, which could be speculative in some cases.

Alphabet and Google are driven by innovation and as a result have a major
portion of its expenditure focused on innovation. R&D forms 38% if its total workforce and is a major driver for growth.

Netflix – The Leading Internet Television Network

Google – Platform of Information & Innovation