Spatially Determining Netflix Target Audience in Toledo_ OH

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					Spatially Determining
   Netflix Target
 Audience in Toledo,
    By Jimmy Thompson
       April 25, 2008
                   Project Idea
I subscribe to Netflix and I like it
 So many questions about the company
        Where do the DVD’s come from?
        How long has it been around?
        Who is most likely to subscribe to their
        How do they decide where to advertise the
               Initial Idea
 Determine  if Netflix is pushing local video
  stores out of business
 Find out who the common Netflix customer
 Determine who they target through
              Actual Project
 Using  four different factors determine who
  would be a good customer then apply that
  to a spatial layout
 Four Factors:
     Location
     Convenience
     Income
     Age
          Netflix Background
 Began  by two friends working for a
  software company in 1997
 Began selling monthly subscriptions to
  DVD service in 1999
 2007 net income = $66.9 million
 Spend $300 million annually in postage
 Employ over 1,400 employees
Netflix Headquarters in Los Gatos, CA
   Toledo Video Rental Stores
 Yellow  pages website
 Excel spreadsheet
 Address Locator using the Lucas County
  street shapefile as a reference
 Geocode
              Location Factor
½  mile and 1 mile buffers
 Chose 1 mile buffer
 Many things effected this decision
     People are exercising more
     Gas prices are high
     Target age
 Walmart, grocery stores
 Day to day routine
 Video rentals are only 3 to 5 days long
               Income Level
 Higher   than average median income
     American Fact Finder website
 Joined   table to Lucas County census
 Range from $0 to $99,908
 Natural breaks, 7 classes
            Population Factor
 Similar style to income layout
 Natural breaks, 6 classes
 Total population to get a feel for where
  video stores are located
           Target Population
 Age 22 to 39
 Natural breaks, 5 classes
 Create field, field calculator to get target
Population Within Walking Distance
1 mile buffer
 Total population
 Target population
         Two Types of Netflix Target
   Traditional Customers            Nontraditional
       Align with four factors       Customers
         •   Location                    Don’t align with
         •   Convenience                  predetermined factors
         •   Income                      Based on need or lack
         •   Age                          of product available
                                         Entertainment
           Data Sources
 ESRI- Census TIGER
 American Fact Finder
 Yellow Pages website
       Exciting Skills I Used
 Erase, and Proximity Buffer in ArcToolbox
 Geocoding (my favorite)
 Join Tables
 Using Field Calculator
     Difficulties Along the Way
 Joining  the tables- determing which field to
  base the join on (Thanks Angel)
 Remembering to Define the Projection of
  the street file before creating an Address
 Biggest Problem- narrowing down my
  project to goals I could achieve
          Further Development
 Video   stores that are no longer in business

 Develop automobile convenience as well
 as include public transportation

 Economic factor- video rental costs versus
 Netflix monthly subscription
Thank You For Your
  Kind Attention
 Are There Any Questions?