This report covers the overview, background, SWOT analysis, future strategic decisions, and description of a job I am applying for.
Overview of Company
Netflix is a mail order and streaming media company based out of Los Gatos, California. According to founder, Reed Hastings, Netflix strategic vision is “ To be a great Internet movie service by combining Internet delivery with DVD by mail, and to grow subscribers and earnings every year while continuing to invest in streaming" (Netflix 2009).
Early years (1998-2006). Netflix is an innovative company that has reinvented the way we buy and watch movies and video content. In 1997 Marc Randolph and Reed Hastings founded Netflix after leaving a company called Pure Software. Reed Hastings came up with the idea when he returned a copy of Apollo 13 late and was charged a fee (Taylor). The service initiated in 1998 as a duel service providing both a subscription model and a pay per DVD model through a mail system rather than an actual storefront. The mail system is supported by a robust website. Netflix decided to discontinue the pay-per model in 2000 and went with a subscription plan that has a per month flat-fee and no late fee, or additional charges for shipping and handling. In May 2002 Netflix initiated an IPO at $15 a share and ended up selling 5.5 Million shares of common stock. Profitability came at the end of 2003. This stat from Netflix’s 2009 shareholder report sums it up. “To put our subscriber growth into perspective: it took us four years from 1999 to 2003, to reach our first 1 million subscribers; in 2009 we added more than 1 million net new subscribers in the fourth quarter alone” (Netflix 2009).
Recent history (2006-2011). In November of 2008 Netflix launched the instant watch service on Xbox Live. The instant watch service allows customers to view on demand programming from the Netflix library directly from their device through internet... [continues]
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