Media PlanSarah M. Rubin

2010

About the Product• Online service offering

flat-rate DVD and Blu-ray Disc rental-by-mail and instant video streaming

• No late fees, No due dates

• Plans from $4.99 - $49.99 per month

• 12.3 million+ subscribers

• 10,000+ titles

• Ships 1.9 million+ discs per day

How it WorksDVDs by Mail:

1. Users sign up and create a list of movies, or a Queue

2. Netflix mails users movies from the Queue

3. Users watch the DVDs and keep them as long as they want

4. Users return viewed movies to get new ones from their Queue

Instant Streaming:5. Users watch online using Mac

or PC6. Users watch on TV via Netflix-

ready devices (Wii, PS3, etc.)

The Industry• The movie rental

industry is constantly having to adapt to new technology and social trends. Brick-and-mortar rental stores are overshadowed by online services, and now $1 rentals are being made available by kiosks all over the country.

• The industry is not yet oversaturated, but the amount of competition is certainly growing.

• In 2009, the industry grossed $6.5 billion in revenue, a 5% decrease from the year before.

• Digital Distribution (download-to-own, video-on-demand, etc.) revenue grew by 27% to $617 million.

Main Competitors• There are several smaller competitors like local

rental businesses and illegal online streaming websites, but Netflix’s two main competitors are Blockbuster (in-store & rental-by-mail) and Redbox ($1 rental kiosks).

Market Share Analysis

Netflix

26%

Redbo

x12%

Blockbuster17%

Other Kiosks

2%

Other

On-line

/Store-front44%

Netflix: $1.67 billion

Blockbuster: $1.08 billion

Redbox: $7.74 million

Other Online/Storefront: $2.85 billion

Other Kiosks: $1.3 million

Total Industry Revenue: $6.5 billion

Share of Wallet Percentages

Marketing GoalTo introduce Netflix to a new niche market, the LGBT

(Lesbian, Gay, Bi-Sexual, Transgendered) community, in order to increase subscriptions and

decrease rate of churn.

LGBT Market Demographics- Chicago

Chicago’s Market Rank 3

Total LGBT Adult Population

114,449

Average HHI $85,400+

Densely LGBT Populated Neighborhoods

Lakeview, Andersonville

LGBT Market Statistics• The Annual Value of

the LGBT Market is $515 billion

• 72% of LGBT online users prefer to buy from companies that advertise specifically to the gay market, and 87% say that they will remain loyal to those companies

• 65% identify themselves as having to have the "latest”

• 77% "believe in indulging in themselves”

• 52% use and/or subscribe to online services

• Online usage is 7-10 times above the national average

Consumer Profile- DemographicsThe “Trendy Gay

Professional”• Persons 25-54• Well-educated (College+)• Resides just north of the city

(Lincoln Park, Lakeview, Andersonville, etc.)

• Likely to own a pet (71%) and likely treat the pet as part of the family (91%)

• Likely to be politically active for causes such as LGBT rights, women’s rights, animal rights, and environmental issues.

Consumer Profile- Activities

• Surfing the Internet (176)• Reading Music,

Technology, Fitness, and Entertainment Magazines (123)

• Reading News Publications (124)

• Watching TV via online streaming or DVR

• Commuting via the CTA • Going to local LGBT

friendly clubs, bars, and events

• Caring for/playing with a pet

Ways to Reach the Consumer

Planning Parameters• Budget– $1,000,000.00

• Seasonality– Heavier TV in Q4 &

Q1– Heavier OOH &

Sponsorship in Q2 &Q3

– Focus on LGBT Pride Month (June)

• Geography

– Chicago (focus on Lakeview & Andersonville neighborhoods)

Media Objectives & Strategies

• To reach at least 50% of the target at least 3 times per week (R=50%, F=3.0x)

• To use a mix of print, interactive, television, OOH, and community event sponsorship to reach the target

• Concentrate on print, interactive, & OOH with a special focus on event sponsorship since the target is loyal to brands that support the LGBT community

• Complement the media plan with minimal television exposure.

• Consider adding more television in the future if budget allows

Media MixPrint Digital Commu

nity Events

OOH Television

Radio

Target is very

likely to read

newspapers and

magazines,

especially those

targeting to the LGBT

community

Target is very tech-savvy and is

frequently

online

Target is extremely brand loyal to

companies who openly support

the LGBT communi

ty through event

sponsorships and partnersh

ips

Target is always on the go, and

lives in a metropol

itan area, so is likely to take public

transportation

Target watches some fringe and late

fringe

Due to minimal usage by

our target, Radio will

not be included

or detailed in this plan,

barring any

remotes that come along as added

value to any of our

event sponsorshi

ps

Print• Concentrate on Print, Digital, & OOH with a

special focus on Event Sponsorship since the target is loyal to brands that support the LGBT community.

• Complement the media plan with minimal television exposure. Consider adding more television in the future if budget allows.

Publication Circulation Published Demographics

Red Eye 250,000 Daily Persons 18-40Average HHI:

$76,700

Time Out Chicago

52,660 Weekly Persons 21-39Average HHI:

$152,900

Boi Magazine

20,000 Bi-Weekly Persons 18-54Average HHI:

$50,000*

Chicago Reader

120,000 Weekly Persons 25-54Average HHI:

$57,817

*estimate based on averages by distribution area.

Print PlanPublicatio

nAd Size/Type Quantit

yCost Per

AdTotal Cost

Red Eye ¼ Page, 4 Color

50 $3,821 $191,000

Time Out Chicago

Full Page, 4 Color

7 $5,970 $41,790

Chicago Reader

Jr. Page, 4 Color

12 $3,732 $44,784

Boi Magazine

Full Page, 4 ColorPrime

Placement

6 $1,069 $6,414Total Print Cost: $283,988

Digital

• Gay Ad Network and Lesbian Ad Network can geo-target viewers in Chicago by city and by zip code, focusing on Andersonville (60640) and Lakeview (60657)

• Reaches over 6.6 million unique users on over 250 LGBT websites and social networking platforms

• Reaches over 500,000 unique users on ‘apple-approved’ LGBT mobile apps

• Buy 35 million impressions total

DigitalLeaderboards, Skyscrapers, Rectangles, Mobile Ad Units,& Custom Placements

Digital PlanMedia Vehicle Impressions CPM

Gay Ad Network 18,000,000 $10

Lesbian Ad Network

10,000,000 $10

LGBT Mobile Apps

2,000,000 $10Total Digital Cost: $300,000

Buy roughly twice as many impressions with Gay Ad Network because not only does the

demographic skew slightly male, but Gay Ad Network also includes some lesbian-targeted

media.

Community Events• Sponsor and participate in several different LGBT

events in order to show support for the LGBT community

• Community involvement not only shows a commitment to the LGBT community, but also to the Chicago

community as a whole

Community Events PlanEvent Date(s) Sponsorship

LevelCost Attendan

ce

Reeling Film Festival

Nov. 4-13

Presenting $10,000 17,000

Chicago Pride Fest

June 25-27

Presenting $20,000 45,000

Northalsted Market Days

Aug 7-8 Supporting $12,500 150,000

Out at Wrigley July 18 Homerun $10,000 40,000

AIDS Run & Walk Chicago

Oct. 2 Red Ribbon $5,000 6,000Total Community Events Cost: $57,500

Community Events Added Value

• On-Site Signage (banners, posters, street pole banners, etc.)

• On-Site Visibility (branded tents, tables, parade floats, etc.)

• :30 Spot on Screen before all films at Reeling Film Festival

• Logo Placement (event posters, press releases, media buys, etc.)– Comcast Spots (2

million+ impressions)– Logo w/ Link on all

interactive media buys

• Radio Coverage (Jack FM, Kiss FM, Q101, 750AM)

• Mentions on various social networking sites (facebook, myspace, twitter,etc.)

• Announcer Mentions and Verbal Thanks at all sponsored events

• Brand Ambassadors at all sponsored events

• Full-page 4-color Ads in program guides

• VIP passes to all sponsored ticketed events

• Swag Bags from various sponsors

Out of Home• Bus Shelters will go live in

June & October with Wallscapes and Branded Buses going live in June.

• June is National LGBT Pride Month, and there are several LGBT events throughout the month, many of which take place outdoors.

• AIDS Run & Walk Chicago is in October, as is the promotion for Reeling Film Festival in November, so all ad copy should reflect support for those specific events.

Out of Home PlanType Uni

tsLocation Duratio

nCost/Month

Total Cost

Bus Shelter

70 Lakeview, Andersonville

2 months

$35,000

$70,000

Wallscape

3 Lakeview 1 month

$40,000

$40,000

Branded Bus

120

#22, #36 1 month

$42,353

$42,353

Total Out of Home Cost: $152,353

Television• Buy :30 spots on Logo

(LGBT cable network) on a local level

• Ads will run in Q3 & Q4 for a total of 30 weeks.

• Ads will run during fringe and late fringe in winter months since that is when they are most likely to reach the target

Television PlanDaypart Points Per

WeekCPP Weeks Total

Fringe 15 $485 15 $109,125

Late Fringe

20 $296 15 $88,800

Total Television Cost: $197,925

Daypart Mix

Fringe43%

Late Fringe57%

Total Media Dollars SpentCommunity Events

$57,500Balance Remain-

ing $8,234

OOH $152,353

Television $197,925

Print $283,988

Interac-tive

$300,000

Sources

• MRI• Scarborough• Nielsen• DART

• Netflix.Com• Netflix Annual Report

• Media Kits from Logo, Gay Ad Network, Boi Magazine, Red Eye,

Time Out Chicago, Chicago Reader, & Facebook