Essay on Netflix

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Introduction Reed Hastings (co-founded) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix is recognized as one of the 50 most innovative companies, ranking number eight for “streaming itself into a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. Below illustrates how Netflix rank in other categories. Number 1 Number 2…show more content…
Instead, Netflix offers no late fees, no membership required, the ability to cancel services anytime, 24-hour online and telephone support, substantial movie reviews from customer (peer), and unlimited streaming and DVD rental services. Most important, Netflix major attraction was quality service without the long lines like most brick and motors. Instead, DVD rentals arrive directly to your front door (Lefler, 2010). This model has launched Netflix into a highly innovative company. As Netflix evolves, their newest rave is moving from the mailing of DVDs rentals to the online streaming of movies, games, and more. This feature is to foster the online products and less of the by mail rentals. This plan will allow Netflix to redirect their U.S. Postal Services cost, which was at an estimated $600 million in 2010 (Lefler, 2010). This equates to about two million DVDs shipments each day (fastcompany.com, 2011). With this plan, the annual expenses in U.S. Postal Services will decline and allow the funds to serve toward a more profitable business strategy. Product Innovations Netflix innovative technology can be contributed to Neil Hunt, Netflix’s chief product officer since 1999. ForeSee Results ranks Netflix 9 out 10 times rated the #1 Web-site in customer satisfaction. Neil’s innovated approach allows each customer an individualized experience. Their breakthrough innovations include the customer’s

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