Publications
Publications
- September 2000 (Revised January 2016)
- HBS Case Collection
Netflix (2000)
Abstract
The CEO of a successful Internet start-up must decide whether to delay the company's initial public offering following a significant decline in the NASDAQ market during the spring of 2000. The company's CFO is asked to reevaluate the company's projected cash flow needs in light of the new requirement that in order to go public, Internet companies must show positive cash flows within a 12-month horizon. While examining ways to extend the company's working capital, the CFO considers various changes to the company's existing business model, including changes in the company's contractual relationships with both its suppliers and its customers.
Keywords
Business Model; Contracts; Initial Public Offering; Cash Flow; Service Delivery; Financial Strategy; Web Services Industry
Citation
Mayfield, E. Scott. "Netflix (2000)." Harvard Business School Case 201-037, September 2000. (Revised January 2016.)