Netflix : An Online Movie Rental Company

1006 WordsApr 27, 20165 Pages
History Marc Randolph and Reed Hastings founded Netflix in 1997 as an online movie rental company to fill a niche market. In 1999, Netflix established a subscription based digital distribution service that offered unlimited rentals without due dates for just a flat fee every month. By the year 2002, Netflix made its initial public offering (IPO) priced at $15 per share after Blockbuster declined a $50 million dollar acquisition offer. With the increased availability of high-speed internet to the mass market, Netflix introduced its streaming service in 2007 to test alternatives means of content distribution and test new technology. From 2010 to Present, Netflix has pushed aggressively worldwide with their digital streaming in an effort to capture global market shares. As of April 2016, Netflix reported to having over 81 million subscribers worldwide with 46 million located in the U.S. Mission “Our core strategy is to grow our streaming subscription business domestically and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our consolidated net income and operating segment contribution profit targets” Size and Scope As of December 31, 2015, Netflix has business segments in Domestic Streaming, International Streaming and Domestic DVD sales. With approximately 3,700 total
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