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Video Rentals

Video Rentals. Company History. Formed in 1997 by Reed Hastings and Marc Randolph Began with 30 employees and 925 DVD Titles for rent Originally offered a 7 day rental for $4 plus $2 shipping In 1999 began no late fees and monthly subscription rates with no shipping costs

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Video Rentals

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  1. Video Rentals

  2. Company History • Formed in 1997 by Reed Hastings and Marc Randolph • Began with 30 employees and 925 DVD Titles for rent • Originally offered a 7 day rental for $4 plus $2 shipping • In 1999 began no late fees and monthly subscription rates with no shipping costs • Reached 1 million subscribers in 2003

  3. Currently • Over 12 million subscribers (the world largest subscription service) • Over 2,500 employees • 2.2 million movies shipped each day (delivered in one business day for 97%) • Over 50 distribution centers in the US • Number one ecommerce company for customer satisfaction

  4. Competitors • McDonald’s Redbox • Blockbuster

  5. Differentiating • Can instantly stream videos from PC or Mac • Can instantly watch videos through TV by use of TiVo, XBOX 360, PS3, Wii, select Blu Ray players, Apple’s iPad, and internet TVs • No late fees and variable monthly subscription plans • Free trials and large selections • Developed ratings and • recommendations program

  6. SWOT Analysis -Strengths *Variety *Easy (Don’t have to leave house) *Affordable *Fast -Weaknesses *Price (Redbox beats price) *Can’t physically look at movies *Difficult to instantly stream through TV without additional devices -Opportunities *Further expand instant streaming *They are beginning to start streaming only subscriptions in other countries *Begin offering cable and satellite TV type services -Threats *OnDemand and other instant movies *Redbox and lower price options

  7. Ethics • Makes the world a safer place • Environmentally friendly: If Netflix members drove to and from a rental store, they would consume 800,000 gallons of gasoline and release more than 2.2 million tons of carbon dioxide emissions annually. • Treat employees really well • No vacation policy, just take off what you need • Pay top of Market

  8. Sources http://techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/ http://netflix.com http://www.dispatch.com/live/content/business/stories/2009/06/24/netflix_vs_redbox.ART_ART_06-24-09_A8_F6E937F.html http://biz.yahoo.com/ic/100/100752.html   http://netflix.mediaroom.com/index.php?s=43&item=350 http://www.youtube.com/watch?v=40OOBYOc5BQ&feature=player_embedded

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