Netflix Vs. Netflix Inc. Essay

The downturn of the economy has taken away many peoples disposable income and Netflix’s limited online library may have caused customers to question if it was worth it or not.

Netflix has created a way to make their service more personal through “the personalized movie recommendation system that uses Netflix members’ ratings to accurately predict choices for all Netflix members” and creating a “Just for Kids” section which targets kids 12 and under (Netflix). In order to create a stronger competitive advantage, Netflix decided to create original programming and series shows. In 2013, they began to be seen as a huge threat in the television market by their competitors when they were the first Internet TV network nominated for a Primetime Emmy. Their original series “House of Cards” and “Orange is the New Black” were both nominated for multiple Emmys and won 7 Emmys in 2014. Creating their own series has led to a growth in memberships and creates a reason for consumers to want to purchase Netflix over other competing companies. They created a new service, defined an entire new industry of entertainment, and found ways to stay ahead of their competition, but still maintained a mantra of putthing their customers’ needs and wants first. Today, “Netflix is the world’s leading Internet television network with over 50 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original

Netflix, first founded in 1997 in Scotts Valley, California, now located in Los Gratos, California, by Marc Randolph and Reed Hastings, is an internet video media streaming service. The idea of Netflix first came to mind when Reed had to pay a fee of $40 for returning the movie ‘Apollo 13’ late to the video store. The company started with a disc rental service but soon developed internet streaming capabilities because of the growing consumer demand for such services. At first, Netflix offered the internet streaming at an additional cost but soon realized that they should be two separate services. The Netflix website was first launched on August 29, 1997 with only 925 movies available for rent with online pay per rental. It was not until September of 1999 when Netflix introduced the monthly subscription where the business model is a flat fee for unlimited rentals. Netflix’s initial public offering (IPO) launched on May 29, 2002 with 5.5 million shares of common stocks priced at $15.00 per share. As of October 6th 2014, Netflix is valued at $463.38 with $27.61 Billion market cap. Over the next few years, Netflix grew rapidly. In 2007 Netflix introduced online streaming allowing members to watch movies and shows instantly on their television. On September 22, 2010, Netflix launched its first service international in Canada. In the following year of September 2011, Netflix launched its streaming service in Latin American. Over the next couple of years Netflix expanded rapidly

These major changes to the company spiked the number of subscribers that Netflix was getting. Not only can viewers watch shows instantly, but they can watch them on the go and from anywhere. In 2011, Netflix subscribers reached 22.9 million and have continued to increase to 69.1 million in 2015. (statista.com) Netflix has yet to see a decrease in the number of users from year to year, but they see a steady increase each year.

Netflix can insulate itself from this threat to existence by staying competitive within the market by making an impact with nearly 23 million U.S. users it is now the largest video service within the country. Most observers expect the company to have more than 30 million subscribers by the end of the physical year. But the animating force of perceived Netflix Paradox is disbelief that when a company does what Netflix does can thrive within the media industry. As long as Netflix primarily focus in the business of aggregating entertainment, the company with prosper Knee (2011).

Netflix began it's operations in 1998 when it decided to capitalize on the increase in internet users, by offering an online version of movie rentals. It owes a large portion of it's success, to its policy of having no due dates, late fees, shipping and handling fees, or per title rental fees. The company started off slowly, and suffered significant losses during it's first few years. But by 2003 it had begun to earn a profit. In 10 years, it has turned into the largest company of it's kind.

Reed Hastings co-founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. The Netflix organization went public in 2002, a year later their subscription reached one million (Blodget, 2011). Prior to making new cultural changes, Netflix was a created to provide movie videos at a cheaper piece to customers than competitors, such as Blockbuster. The objective of the Netflix organization was to make easier for customers to rent movies and to eliminate the annoyances involved in picking up and returning the movie rentals to the store. Netflix tried to make the company more like Blockbuster and other video stores, which was challenging. Netflix faced issues of getting movies to customers from a warehouse in a reasonable

The company has managed to do this by breaking free of its original 1990’s DVD distribution service by mail to becoming a national video streaming service in 2007. Since the switch, Netflix has left the cable industry lagging. Today, most households are looking to replace cable with a streaming service. This is a result of Netflix changing the way people receive media. For years the cable industry stood strong running channels generating revenue from both subscribers and advertiser broadcasting shows to mass audiences while Netflix continued to distribute DVD’s.

Netflix was created by Reed Hastings and Marc Randolph in 1997. In 1999 Netflix offered unlimited rentals a month for one low price. There was 239,000 people who signed up. Hastings was faced with a challenge from Walmart now that has passed there bigger threat is Blockbuster. People loved having unlimited due dates with no late fees, and it delivered right to there houses. Hastings got the idea when Blockbuster charged him $40 dollars in late fees. Subscribers of Netflix are streaming videos and episodes instead of watching it the first time on cable. Netflix is in trouble because Disney and Nickelodeon are thinking about pulling there shows away. If they do that Netflix will lose a lot of subscribers. Cartoons are a lot of the reason most

Netflix has been fortunate to experience astonishing growth in recent years, both in online streaming and customers’ subscriptions. Netflix alone consume up to 32.7 percent of peak downstream traffic in the United States

There have over 30 million members in over 50 countries enjoying over a billion hours of TV show and movies from Netflix every month. As the market is still increasing, there has a big opportunity for Netflix.

Netflix has done a great job at attracting potential customers. As visible above, Netflix has increased their subscriber total by at least 18.4%, as seen

Netflix was originally co-founded by software executives Reed Hastings and Marc Randolph. When this company was founded, the strategy was to be able to offer online movie rentals in 1997. As time progressed, Netflix was able to launch a subscription service to be able to offer unlimited rentals for a low cost monthly fee. In 2007, Netflix introduced instant streaming, which allowed customers to be able to instantly watch TV shows and movies on their computers, followed by other electronics including the TV in 2008. Since 2010, Netflix has been expanding globally including places like Latin America, the Caribbean, and places across Europe. They plan to be in as many places across they globe as possible in the near future. In 2013 Netflix was the first Internet TV network to get nominated for the primetime Emmy, and in 2014 won 7 creative Emmy Awards for Netflix creative series like, House of Cards and Orange is the New Black. Netflix has revolutionized the way of watching movies and TV shows, while captivating over 50 million viewers around the world thus far (Netflix, 2015).

The name of Netflix soon became a common name heard about when people talk about their leisure time. By the year of 2005 the company of Netflix had accumulated a user base of 4.2 million people (Netflix, 2014). The main part of this growth took place in three years from their IPO in 2002 with just 600,000 users. That amounts to over 400% percent increase in users in a relatively short amount of time.

I think we can also mention that Netflix, Inc. is the world’s leading Internet television network with over 75 million streaming members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Netflix’s core strategy is to grow streaming membership business globally within the parameters of its consolidated net income and operating segment contribution profit (loss)