Who I Am Netflix Update

Tim 101april2019contents Who I Am Netflix Update Netflix Supply C

Tim 101 April 2019 Contents. Who I am, Netflix Update, Netflix Supply Chain Ming Chao Snapshot, Information Systems Management (ISM), BS, UC Santa Cruz, 2004, Master Business Administration, MBA, Santa Clara University, 2010, Netflix 2018 – Present, Currently Position – Head of Trade Compliance, Held various positions in project/program management, auditing, consulting, and trade compliance, Seagate, Netapp, Infinera, Expeditors.

Company Snapshot: 190+ Markets, 130 MM Global Paid Members, 57 MM US Paid Members, 73 MM International Paid Members, Membership figures (rounded) as of Q3’18. Continuing to add members globally.

Netflix is experiencing accelerating revenue growth with more than 11x increase over the past decade and operates in a very large addressable market of approximately 705 million broadband homes excluding China. The company has expanded into various regions including Canada, Latin America, the UK, Ireland, Nordics, Benelux, France, Germany, Switzerland, Austria, Australia, New Zealand, Japan, Spain, Portugal, Italy, and Rest of World x-China.

Netflix’s strategic focus is on building a virtuous cycle through content that connects people to inspiring stories. The company emphasizes the importance of storytelling, creating meaningful dialogues with fans, and ensuring their advertising is as engaging as their content. Using insights and targeted marketing, they aim to serve the right content to the right audience at the right time.

Netflix promotes a culture of creativity and innovation, constantly challenging norms with disruptive campaigns. The company has a significant global subscriber base of approximately 130 million paid members across over 190 countries. About 90% of these members engage with original content, which is central to the company’s differentiation strategy.

Netflix’s original programming includes local originals, well-known franchises, and new shows, with a notable record of Emmy, SAG, and Golden Globe nominations and wins. In 2018, Netflix tied with HBO for the most Emmy wins, securing 23 Emmy Awards out of 112 nominations, and received multiple nominations and awards at the SAG and Golden Globes, demonstrating the high quality of their original content.

In terms of content quality, Netflix has achieved numerous awards including 12 Emmy nominations, 2 Golden Globe nominations, and several SAG nominations and wins, illustrating its prominence in the entertainment industry.

The company’s building of a global supply chain plays a crucial role in enabling its content distribution. The supply chain involves managing the complex requirements, procedures, and costs of shipping goods across different countries and territories. This process is often behind the scenes and underestimated in its importance, but it presents significant opportunities for establishing efficient trade routes and reducing costs.

Netflix faces several challenges in its supply chain management, including the need for regular overtime from international shipping specialists, over-reliance on third-party logistics without standard operating procedures, and handling complex logistics responsibilities internally. The company also encounters issues with customs clearance, shipment delays, and the expectation of increased international shipment volume over the next two years.

Trade compliance is integral to Netflix’s supply chain, encompassing screening, classifying, valuing, auditing, and reporting activities governed by multiple regulations from various agencies in both origin and destination countries. This includes ensuring compliance with U.S. agencies such as the Customs & Border Protection (CBP), Bureau of Industry & Security (BIS), and Office of Foreign Assets Control (OFAC), as well as international agencies.

These regulators enforce laws concerning imports and exports, technology sanctions, and trade restrictions to prevent dealings with sanctioned countries or entities. Netflix’s trade compliance team manages detailed screening processes, classifications, valuation, paperwork, licenses, permits, and restricted technology access, ensuring adherence to international trade laws and regulations.

Building a compliant and efficient international supply chain involves navigating complex regulations, authorizations, and sanctions. This proactive compliance not only mitigates legal risks but also enhances operational efficiency and supports Netflix's global expansion ambitions.

Paper For Above instruction

Netflix's meteoric rise from a DVD rental service to a global streaming giant underscores the importance of an intricate and well-managed international supply chain. As content distribution expands across a vast and diverse global market, Netflix faces the challenge of managing complex logistical and compliance requirements to ensure seamless access to its extensive library of original and licensed content. This paper explores the critical facets of Netflix's global supply chain management, emphasizing the role of trade compliance and logistics in supporting its rapid international growth.

At its core, the supply chain encompasses the management of the flow of goods, information, and services across international borders, often involving multiple stakeholders including carriers, customs authorities, regulatory agencies, and vendors. For Netflix, this involves orchestrating the import and export of digital and physical assets such as film reels, digital servers, and licensed content rights, often across numerous territories with varying regulations and standards.

The significance of an efficient supply chain for Netflix is multifaceted. Firstly, it affects the timely availability of content, which is crucial in maintaining competitive advantage and meeting viewer expectations. Delays caused by customs procedures or logistical bottlenecks can result in lost revenue and diminished customer satisfaction. Secondly, cost management is vital; optimizing shipping routes, negotiation with carriers, and compliance with tariffs and taxes directly impact profitability. Thirdly, regulatory compliance—particularly with export controls, sanctions, and licensing laws—is essential to prevent legal infractions that could jeopardize the company’s operation and reputation.

Building and maintaining a resilient supply chain poses significant challenges. With the volume of international shipments increasing annually, Netflix must contend with overburdened logistics systems that require frequent overtime, highlighting the need for streamlined processes and automation. The reliance on third-party logistics providers often entails risks of non-standardized procedures, which can lead to delays or errors. Moreover, complex customs procedures, especially those involving technology and entertainment content, necessitate meticulous classification, valuation, and documentation, which are prone to errors without stringent controls.

Trade compliance emerges as a critical aspect of Netflix’s supply chain strategy. It involves adherence to a web of regulations from multiple jurisdictions, including regulations enforced by the U.S. Customs & Border Protection, the Bureau of Industry & Security, and the Office of Foreign Assets Control. These agencies impose restrictions to prevent illegal trade, ensure national security, and uphold sanctions. For instance, OFAC sanctions prohibit dealings with certain countries, entities, and individuals, requiring Netflix to screen all shipments and transactions against watch lists diligently.

For example, the classification of goods—using codes such as Export Commodity Classification Number (ECCN), Schedule B, or Harmonized Tariff Schedule (HTS)—determines tariffs, licensing requirements, and eligibility for exemptions. Evaluating the value of shipments using WTO-accepted methods ensures compliance with valuation standards, avoiding penalties or customs rejections. Additionally, licenses, permits, and certifications are often prerequisite for cross-border shipments, especially when dealing with sensitive technology or copyrighted content.

Furthermore, Netflix must manage restricted technology controls, ensuring that foreign nationals from embargoed countries do not access certain technologies that could be used for military or offensive purposes. This entails rigorous screening, monitoring, and record-keeping, aligned with international sanctions and trade laws.

In a practical setting, the process begins from preparing the shipment at source, followed by carrier transfer, customs clearance at the export and import points, and finally, delivery to the content distribution servers or physical locations. Each stage requires compliance checks, proper documentation, and collaboration with logistics providers to minimize delays. The lifecycle of a typical import/export shipment involves active engagement with customs authorities, freight forwarders, and regulatory bodies to ensure all legal and safety protocols are met.

In conclusion, Netflix’s global supply chain is instrumental in its success, facilitating the vast distribution network necessary for worldwide content delivery. Ensuring compliance with international trade laws and regulations is not merely a legal obligation but a strategic imperative. By investing in robust customs and trade compliance processes, Netflix can mitigate risks, reduce costs, and support its ambitious international expansion. As the company continues to grow, its capacity to manage complex logistics and compliance frameworks will remain a key determinant of its global competitiveness and operational excellence.

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