term paper B

CSE 170

Nov 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

Favorite Netflix Shows

Company Snapshot

Netflix available virtually everywhere

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190+ Countries

152M Global Paid Members*

60M US Paid Members*

91M Int’l Paid Members*

*Membership figures (rounded) as of Q2’19.

Los Gatos California Los Angeles California New York New York Washington DC Amsterdam Netherlands London United Kingdom Madrid Spain Mexico City Mexico Mumbai India Paris France São Paulo Brazil Seoul South Korea Singapore Singapore Tokyo Japan Berlin, Germany

Continuing to add members globally Paid Members

Starting Members

Net Additions

Ending Members

Accelerating revenue growth Greater than 11x revenue increase over the past decade

$4.8B Global Streaming Revenue in Q2’19

U.S. International

Building a virtuous cycle

Instagram Followers Before Netflix Launches

Before Launch And helps create stars around the world Who we are

As of April 2019

Instagram Followers After Netflix Launches

And helps create stars around the world Who we are

Available on over 1600 devices

03 GG Nominations 02 GG Wins 10 Oscar Nominations 03 Oscar Wins

We are committed to quality

09 Emmy Nominations 02 Emmy Wins 01 GG Nomination 04 SAG Nominations 01 SAG Win

03 Emmy Nominations 03 GG Nominations 02 GG Wins 03 SAG Nominations

Note: Nominations and results from 2018 SAG Awards, 2019 Golden Globe Awards, 2019 Oscars, and 2019 Primetime Emmy Awards.

01 SAG Nomination 03 Oscar Nominations

16 Emmy Nominations 02 Emmy Wins

05 Emmy Nominations 01 Emmy Win 01 GG Nomination 03 SAG Nominations 01 SAG Win

● 27 Emmy wins for Netflix Originals in 2019, 2nd most of any network ● 118 Emmy nominations for Netflix Originals in 2019, up from 112 in 2018 ● Winner of Best Performance by an Actor in Drama Series and Best Comedy Series in 2019 Golden Globes ● Winner of Best Director, Best Foreign Language Film, and Best Cinematography in 2019 Oscars

02 Emmy Nominations 02 GG Nominations 01 GG Win

Building of a Global Supply Chain

Prep Carrier Transfer

Airport of Export

Airport of Entry

Customs Clearance Deliver

Lifecycle of a Typical Netflix Import / Export Netflix typically assumes all liabilities & responsibilities along the chain.

What is Supply Chain Supply Chain is the management of complex requirements, procedures, and costs of shipping goods between different countries and territories.

Often one of the most neglected and promising functions of an organization because a lot of the work is done behind the scenes with third parties and the opportunities for establishing clear trade routes and cost savings is typically underestimated.

Challenges at Netflix ● Current volume requires regular overtime from International Shipping Specialists ● Over-reliance on third parties without SOP ● Encumbering non-Facilities/logistics Netflix employees to handle complex logistics responsibilities ● Netflix pay whatever carriers and vendors charge us ● Both third party partner-initiated and Netflix-initiated shipments get stuck in customs ● International shipment volume projected to drastically increase within the next two years

What is Trade Compliance? Screening, classifying, valuing, auditing, reporting, and much more!

Multiple agencies and regulations from the origin & destination countries govern international imports and exports

HIGHLIGHTS

✔ Denied Party Screening against government watch lists & sanctions programs.

✔ Classifications including Export Commodity Classification Number (ECCN) for software & hardware. Schedule B (and international HTS equivalents), for everything.

✔ Shipping terms review and negotiation with partners or vendors.

✔ Valuation using WTO-accepted customs values for shipped goods.

✔ Paperwork including licenses, permits, certifications, inspections for certain goods and countries, import tax drawback, reports, customs inquiries.

✔ Control access to restricted technology by foreign nationals from embargoed countries.

The US Custom & Border Protection (CBP) => Regulations for over 40 federal agencies are enforced by the U.S. Border Patrol on U.S. imports and exports.

The US Bureau of Industry & Security (BIS) => Regulations for over 9 categories of technology exports such as nuclear, computer, IT, sensors, lasers, avionics/aerospace, marine.

The US Office of Foreign Assets Control (OFAC) => Enforces economic and trade sanctions. Ensures that U.S.companies do not accidentally do business with sanctioned-countries or “SDNs”. OFAC publishes a list of “Specially Designated Nationals,” individuals, groups, companies, and entities that U.S. persons are prohibited from doing business.

International Agencies:

Key Agencies

Huawei and Trade Tensions