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 Reached 1 million subscribers in 2003

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 USdistribution centers Number one ecommerce company for customer satisfaction

Competitors McDonald’s Redbox Blockbuster

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

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

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 Ethics

internal-netflix-presentation/ internal-netflix-presentation/ Sources