1. Financial
1.1. Volatility in Membership Subscription Revenue
1.2. Payment Process Risk
1.3. High Use of Long-Term Debt
1.3.1. Increased Bankruptcy Threat
1.3.1.1. Making debt payments are difficult with uncertain cashflows
1.3.1.2. Can affect how Netflix contracts with other firms
1.3.2. Interest Rate Risk
1.3.2.1. Difficulty in producing accurate forecasts
1.3.2.2. No direct derivates in hedging risk
1.4. Exchange Rate Risk
1.4.1. Transaction Exposure
1.4.1.1. Rise in exchange rate
1.4.1.2. Translate financial statements back to US currency
1.4.2. Success in Global Expansion Dictating Future
1.4.2.1. Affect's profitability of entering an individual country
1.4.2.2. Does not use derivative hedging
2. Hazard
2.1. Legal Liability
2.1.1. Trademark, Copyright and Negligence Claims
2.1.1.1. International distribution
2.1.1.2. Content made available where banned
2.1.2. Intellectual Property Disputes
2.1.2.1. Free streaming sites
2.1.2.2. Unlicensed merchandise being sold
2.2. Service Disruptions (Weather)
2.3. Major reliance on Amazon Web Services
2.4. Cyber Attack Risk
2.4.1. Profit Potential for Hackers
2.4.1.1. Huge amount of information
2.4.1.2. Multiple entry points
2.4.2. IT Security is a Dynamic Challenge
2.4.2.1. Expensive
2.4.2.2. Constant emergence of new hackers and better technology
3. Strategic
3.1. Direct Competition with Other Streaming Services
3.1.1. Large Firms entering the market
3.1.1.1. Able to maintain higher costs
3.1.1.2. Established brand equity
3.1.2. Competitors Offering Better Value
3.1.2.1. Multiple offerings
3.1.2.2. Lower prices
3.2. Shift in Strategy focused on content creation
3.2.1. Using Different Model
3.2.1.1. Management inexperience
3.2.1.2. Opportunity cost
3.2.2. Unclear returns
3.2.2.1. Risks with new shows
3.2.2.2. Expensive
3.3. Customer Retention
3.4. Shift in Demographics
3.5. Change in Customer Wants
3.6. Damage to Reputation
3.7. Changes in Governement regulation
4. Operational
4.1. Upkeep of Devices Used for Streaming
4.2. Internet Service Providers Actions & Net Neutrality
4.2.1. Access controlled by ISP's
4.2.1.1. ISP's profit from charging interconnect fees
4.2.1.2. Impact subscriber experiences
4.2.2. Net Neutrality issues
4.2.2.1. Ajit Pai appointed
4.2.2.2. Different laws in every country
4.3. Acquiring Content
4.4. New Technology not performing well
4.5. Customer Privacy Concerns
4.6. Inability to maintain adequate inflow of content
4.6.1. Competitive Pressures
4.6.1.1. High # of Competitors
4.6.1.2. Limited Finances
4.6.2. Slow production of Original Content
4.6.2.1. Released on per-season basis
4.6.2.2. Developed from scratch