Business Canvas Model Examples —TikTok & Netflix

Netflix customer segments

Netflix platform is designed to please a wide range of subscribers. For this reason, its catalog covers the most varied titles, able to entertain fans of films, series, documentaries, and shows of all genres, for all ages and preferences.

For this reason, customer segmentation is both usage and geographical, but only to verify what type of content works best for each audience.

Netflix value proposition

Netflix’s entire value proposition is linked to the fact that it provides quality entertainment to its user, 24/7. This proposition includes:

Access to a huge catalog of products, with content for all tastes.
On-demand streaming, with 24/7 access – without ads!
Possibility of binge-watching.
Offering personalized lists and recommendations, based on the content watched.
Original and high-definition content.
User accounts, allow each person in the family to have a personalized profile.
All of this on any device connected to the internet.

Netflix channels

The main channels of Netflix are, no doubt, its own website, and app. But they also invest in online and offline advertising, take advantage of social media and benefit a lot from word of mouth among its users.

Netflix customer relationships

Netflix’s customer relationship is built primarily on the platform itself. It is user-friendly and therefore allows the user to configure it in the way that best suits them. Second, it uses an algorithm that suggests content based on what users usually consume.

Netflix user support also allows access via website, email, chat, and telephone. And finally, the company’s work with social media is very strong. Netflix uses networks like Instagram, Facebook, and LinkedIn to update the audience about releases and promotions. And the company really “talks” to their users, answering a great part of the comments in their posts.

Netflix’s revenue streams

Since Netflix’s business model is grounded on subscriptions, it is simple to say that its revenue streams are based on the monthly fees paid by its millions of subscribers. However, as you’ll see below, Netflix’s cost structure is also huge! Which brings up big questions about the company’s profitability.
Netflix key partners

Netflix has a wide range of key partners. Among them, media producers and TV networks stand out, which license their content to Netflix; consumer electronic producers such as Wii, X-Box, PlayStation, which bundle Netflix with their systems; and Amazon AWS, since the Netflix platform is totally hosted on AWS. Besides those, there are investors and regulators.

Netflix key activities

Netflix’s key activities are all about offering the best streaming content experience to its users.
This means that, in addition to investing in technology, and hiring and retaining talent to keep its platform running at high performance, the company also needs to focus on its content offering.

That is, besides maintaining and expanding its platform on the website and apps, Netflix needs to produce, select, license, and acquire relevant content; build partnerships and negotiate with studios, content producers, and movie production houses; while analyzing and understanding customer behavior to improve their experience.

Last but not least, Netflix must keep developing its subscription model and pricing strategy, to keep and grow its customer base.

Netflix key resources

In addition to its own platform, website, and app, Netflix’s key resources are mainly human and digital resources. Among them, there are software developers, the content library, the recommendation algorithm, filmmakers and producers, the brand, and the studios that Netflix is developing to support its own creations.

Netflix cost structure

The cost structure of Netflix is… complicated and huge to say the least. And also the reason for which the company had a bad cash flow during their first years (maybe even to this day). Because the new business model demanded a BIG investment to reach the position where the company has gotten today. This huge cost structure involves: