Topic > Netflix and Facebook: A Case Study - 1379

IntroductionThe ability of marketers to use user-generated content from social networking sites like Facebook increases the chances of developing personalized, targeted advertising and promotional content for specific customers , thus increasing profitability through the acquisition of greater market share and competitive advantage. Targeted, personalized and interactive marketing helps increase customer loyalty and improves customer loyalty by making a company's products and services increasingly compelling, leading to repeat purchases and increased profitability, as well as reducing service costs to the customer. Netflix Incorporated: An Overview According to Allen & Vicente (2012), Netflix was co-founded in 1998 by Reed Hastings and Marc Randolph. Hastings got the idea for the disc-by-mail service after being forced to pay a $40 penalty for renting a VHS movie of Apollo 13. In 1998, Netflix began offering disc-by rental services -mail for $4 per rental plus a shipping fee. In 1999, Netflix changed its revenue model from a fee per rental to a flat monthly subscription fee model that included all shipping costs and abolished late fees. In 2000, Netflix launched its personalized movie recommendation system. This system used subscriber ratings to predict movie choices and subscriber preferences. In 2002, Netflix conducted an initial public offering (IPO), raising $85 million by selling 5,500,000 shares at $15 per share on the NASDAQ. In 2007, Netflix teamed up with Facebook and introduced streaming by allowing subscribers to instantly watch TV shows and movies on their computers. Facebook friends, whether you sell via Facebook or not? What facility, resou...... middle of paper ......ilable at accessed March 13, 2014.Palmer, A. & Koenig-Lewis, N. (2009). An experiential, social network-based approach to direct marketing, Direct Marketing: An International Journal, 3(3) [online]. Available at , Accessed March 14, 2014.Pletikosa, I., Spiegler, E.D. & Michahelles, F. (2013). Scoreboard for brand presence on social media, Social Network Analysis and Mining 3(4), pp. 1325-1349VanDyke, D. (2011). Secrets of Facebook Marketing. [online] available at accessed March 14, 2014 Facebook-Netflix. (n.d.). Facebook. [online] available at < http://www.facebook.com/netflix>, accessed March 14, 2014.