Netflix digital transformation.pdf important

Netflix

1. Case Study Topic NETFLIX Digital
Transformation

2. Introduction
Netflix
Netflix transformed from a DVD-by-mail subscription (late 1990s) into
the world’s leading streaming platform
and content producer by
combining bold strategic pivots (streaming, originals), cloud-native
engineering (AWS, microservices), and a relentless data-driven culture
(personalization, experimentation)

3. Timeline & key milestonesNetflix
• 1997–2007: Founded as DVD rental-by-mail; subscription model introduced; DVDs provide early cash
flow.
• Late 2000s: Streaming emerges; company begins investing in streaming technology and
infrastructure.
• 2008–2016: Major migration to cloud infrastructure (AWS); adoption of microservices and resilience
practices (Chaos Monkey / Simian Army).
• 2013: Big content pivot — release of House of Cards as a Netflix original, accelerating Netflix’s
role as a producer.

4. Telemetry & experimentation: Extensive A/B
testing and
telemetry to optimize UI, artwork, encoding,
and features in production. 02
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Strategic driversNetflix
Need for scale,
reliability and global
delivery at low marginal
cost.
Differentiation via original
content and increased
lifetime value (LTV) of
subscribers.
Consumer shift to on-demand
streaming and multi-device
consumption.
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Technology & architecture
Netflix
Cloud-first: Netflix runs its streaming backend
primarily
on AWS, allowing rapid provisioning of
compute/storage and global reach.
Microservices: Breaking monoliths into
services
enabled faster deployments,
team autonomy and independent scaling.
01

5. Content & Culture Netflic
Licensed content helped initial growth but didn’t lock customers in. Netflix used viewing data to make bolder content
investments — first big example: House of Cards (2013) — then rapidly scaled originals and regional productions to boost
retention and reduce reliance on external licensors.
Netflix curates its library based on regional viewing habits and preferences. A series popular in one country might not
resonate with audiences in another, leading Netflix to prioritize content that aligns with local tastes. This strategy ensures
that the platform remains relevant and engaging to its diverse user base.
Shift From Regional To Original
Regional production

6. OutfOutcomes & lessons Netflix
Rapid global subscriber growth, increased watch hours, higher retention through
better matching of content to users, and valuable original IP contributing to brand
strength and differentiation.
1. Treat transformation as strategic and mission-critical, not just a technology project.
2. Invest in cloud, automation, observability, and microservices to enable rapid experiments and scaling.
3. Use data to de-risk big strategic bets (content, product features).
4. Build resilience via chaos engineering and plan for operational complexity as you scale.

7. Thank You