Innovation Tactics

Develop innovation ideas you can be proud of

  • Home
  • About Us
  • Contact

May 25, 2019

Netflix Business Model: is the Flywheel humming or coming off?

Netflix Business Model: is the Flywheel humming or coming off?

This article is bringing the previously described elements of the business model together into the Flywheel model. You will see that the investment cycle consisting of
(1) Content;
(2) Technology; and
(3) Marketing
is the linchpin that in relation to the competitor moves will determine Netflix’s trajectory…

Gain in-depth, real-world insights into Netflix’s business model now (btw, you can easily adapt the Flywheel concept on your own innovation idea and I’m showing how)…

Article by Dr Murat Uenlue / business models, Crucial metrics, Subscription Business Model / Netflix Leave a Comment

May 5, 2019

Crucial Metrics: Free Cash Flow in-depth real-world example Netflix

Crucial Metrics: Free Cash Flow in-depth real-world example Netflix

Cash flows are important events in your business and free cash flow is a great metric that Netflix and other innovators pay great attention to:
“We believe free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments and for certain other activities or the amount of cash used in operations, including investments in global streaming content.” (Netflix, annual report 2018)

Free cash flow is an important metric in any innovator’s finances as we are often using cash (typically from outside sources) to create assets and operate our business until it generates sufficient profits to hold itself. If you look at Netflix, you will see that pattern supercharged. Here are the free (hugely negative, -$7 billion) cash flows of the recent years which show outside funds being injected into the business to invest in technology and content:

Today you will learn:
– How to calculate free cash flows
– Asset creation via capex
– Depreciation and amortisation
– Working capital as a liquidity measure
– External funding sources

Article by Dr Murat Uenlue / Crucial metrics, Subscription Business Model / Free cash flow, Netflix Leave a Comment

April 7, 2019

Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV) or (LTV): Learn from Netflix

Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV) or (LTV): Learn from Netflix

We are continuing our mini-series of crucial metrics for growth companies using Netflix as an in-depth real-world example. Last time, I covered the crucial metric Contribution Margin that guides Netflix’ decision making on content investment on a macro level.

Today, we are going to look at a number of metrics that are being used in the context of assessing companies’ growth potential:

CAC: Customer Acquisition Cost
CLV (or LTV): Customer LifeTime Value
ARPU: Average Revenue per User
Churn
The important ratio of LTV/CAC
Profit per user
These metrics are helpful in the context of repeat users within the subscription business model but also the platform business model (e.g. Uber, Airbnb, TripAdvisor, Facebook, etc) which I have covered in extensive detail under those links.

Join me today to gain valuable real-world innovation knowledge.

Article by Dr Murat Uenlue / Crucial metrics, Subscription Business Model / Netflix, Streaming 1 Comment

We write for

I write for eager learners about innovation from a business management perspective. My aim is to offer in-depth, real-world knowledge that will help you to develop innovation ideas that you can be proud of. Our readers are Founders, CEOs, MBA Students/Alumni, Consultants, Senior Executives, Business School Professors and many others with great innovation ideas!

Free downloads


20+ Free Downloads!
Get access to our free download centre (NEW!!):

Access free download area now ...

Click here if you have already created an account

In-depth Knowledge

Learn more & order ...


Learn more & order...


Learn more & order...


Learn more & order...

About me

Murat Uenlue, PhD, Program Management Professional (PgMP), Project Management Professional (PMP). Currently program managing the most significant strategic innovation project for our company >$1 billion total value.

Warren Buffet

How to Get Smarter

Read. A lot.

Warren Buffett says, “I just sit in my office and read all day.”

What does that mean? He estimates that he spends 80% of his working day reading and thinking.

When asked how to get smarter, Buffett once held up stacks of paper and said, “Read 500 pages like this every week. That’s how knowledge builds up, like compound interest.”

FS blog

Focus areas

  • Platform Business Model
  • Subscription Business Model
  • Strategy
  • Online travel agencies
  • Netflix
  • Uber
  • Airbnb
  • Amazon

Free Downloads

Get access our free downloads (over 20 and counting) and paid products.

Click here if you have already created an account

© InnovationTactics.com - all rights reserved
Privacy --- Terms & Conditions