NetFlix was founded by Reed Hastings and Marc Randolph in 1997, who viewed the company as a combination of traditional video store and a subscription cable TV services. NetFlix has been providing DVD owners a convenient and a cost effective way to rent movies since April 1998. NetFlix operated as an internet based rental subscription services for digital video disc (DVD) formatted movies. NetFlix's website provided customers to not only browse the catalogue of movies with ease but also presented clips of movies that customers were able to rent. NetFlix's mission is to provide services that help members choose and receive rental movies with a complete satisfaction.
Having foreseen the positive trend of the DVD player market together with the rapid growth of internet access, NetFlix positioned itself in the online DVD rental business. The target market NetFlix focuses on those who love movies, have access to internet, possess a DVD player or DVD-ROM equipped PCs. Customers who were unsatisfied with the game rule of other local rental companies preferred the online stores, which cover many demographics. Being in the business for some time Netflix had to make a decision on whether to improve their business by revenue sharing with other DVD and PC manufacturers or attract more customers by providing them with a month of free service.
Providing new customers with a month of free service.
NetFlix provides a subscription-style e-commerce service. .
Low monthly fee to compete with other video rental business. .
NetFlix incurs less overhead because no storefront is required and fewer employees are hired.
Customer can get the movies they like without leaving home or travel distances. .
NetFlix provides customers unlimited access to the world's largest DVD library consisting of 10,000 movies, which is more than 10 times the selection of the Blockbuster. .
NetFlix's terrific search engine and automatic movie recommendation engine help customers find their favorite movies easily.