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Netflix Case Study and Survey Results

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Netflix Case Study and Survey Results

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  • May 23, 2007
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Netflix Survey Results and AnalysisPURPOSEAs the future of DVD rental (online and in physical stores) becomes even more congested with the addition of online movie/tv download sites, Netflix is seeking to learn more about the current and future usage by customers. In January 2007 Netflix began a limited launch of an online download service which they have been keeping relatively quiet until additional research and information become available regarding the future of movie/tv show rentals. Note: CEO Reed Hastings has committed his company to hitting 20 million subscribers between 2010 and 2012 (BusinessWeek) so Netflix has no intentions of bowing out of the movie market. In addition, Netflix would like to gain insight into DVD rental consumer habits, opinions, insights and activities as well as the demographics of their best users and their more challenging markets.

Overview:Netflix currently boasts 6.8 million subscribers since launching its subscription service in 1999. Netflix operates 44 shipping centers located throughout the United States and more than 90% of Netflix subscribers live within one-day delivery postal zones. On average, Netflix ships 1.6 million DVDs each day (Netflix.com). In January of 2007, Netflix announced that it would introduce a trial download service for approximately 1,000 movies and TV shows. Netflix needs to determine if and when the online rental service will give way to online downloading.

General Findings:We designed a 19 item survey with three prescreening questions designed to eliminate people who do not rent DVDs, will not in the next 6 months probably rent a DVD, and who themselves or their families work at a DVD rental provider, company or service (Video On Demand, PPV, etc). We sent our survey out to a wide sample based on random email addresses. Surprisingly out of the 154 respondents to our survey, only 106 passed through the prescreening questions—eliminating nearly 32% of our audience. When I went offline and...