Netflix Analysis

Introduction

In 1998, Reed Hastings and friends, Marc Randolph and Mitch Lowe rented the movie Apollo 13 from nearby Blockbusters. Discussing the inconvenience of having to drive to the store, Reed and fellow computer science collogues considered the alternative of having a movie delivery service to eliminate the drive to a store. A week later Reed drove back to Blockbusters to return Apollo 13, suffering from a hefty $40.00 late penalty. Outraged and annoyed, Reed had an “Aha-moment” where he discovered the opportunities of Netflix.

Based out of California, Netflix is now an online entertainment subscription service that brings the entertainment to you. With over 100,000 DVD’s and thousands of TV series and shows, Netflix offers entertainment at the tip of your fingertips. Promising no late fee’s, cancelation clauses, no shipping fees or due dates, Netflix has been able to build a very strong sense of brand loyalty to customers living in a “Do-It-For-Me” Generation. Netflix has top-ranked e-commerce companies in the customer satisfaction ratings and over the last 10 years have endured very high growth development providing high profits, subscriber rates and earnings.

The services that Netflix provides are an online database that offers a huge collection of movies and TV shows. Customers are able to sign up for a low rate of only $7.99 per month, which allows them unlimited access to the company’s online database. Streaming instantly is one of Netflix’s biggest advantages over the competition as it delivers instantaneously. It eliminates the middleman, and thus the annoying trip to and from Movie outlets such as Blockbuster and Rogers.

Another feature that leverages Netflix above others in its industry is the social networking it provides. On Netflix subscribers are encouraged to create a profile in which the website tracks its past movie rentals, and uses it to recommend movies of a similar genre or type. This intellectual technology serves as the... [continues]

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