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Netflix: The World’s Largest Online DVD Rental Service Since 1999

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Launched in 1999, Netflix is the world's largest online DVD rental service, boasting over 65,000 titles that include hard-to-find indie films, documentaries, and TV series across 200 genres. With 5.7 million subscribers, Netflix aims to be the most influential movie supplier, allowing filmmakers to produce more films. Customers appreciate the convenience of home delivery, a variety of membership plans (including a free trial), and zero late fees. With ongoing expansion and a focus on customer satisfaction, Netflix continues to redefine movie rental.

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Netflix: The World’s Largest Online DVD Rental Service Since 1999

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  1. By: Chelsi Bauman Lisa Fritz Jeff Heim

  2. What is it… • Launched in 1999 • The world's largest online DVD movie rental service • 65,000 titles including hard to find Indie films, docs, and TV series • 200 genres • Have 5.7 mil. Subscribers • Goal is to be largest and most influential movie supplier- allowing filmmakers to make more films • Voted #1 customer satisfied website for 3 consecutive periods • Buy DVD’s too

  3. How it works… • Sign up for membership • 10 membership options including free trial • Choose movies for your “queue” • Free delivery in a couple of days • Keep them as long as you want • Prepaid return envelopes • Get next movie in queue • “No late fees, No due dates”

  4. SWOT Strengths – What makes them great? • Convenience • Delivery straight to mailbox • Speed • 41 shipping centers across US are key for overnight delivery • They plan on opening more shipping centers • Services! • Profiles—more than one on an account • Friends—Share movie ideas and info with friends • Personal movie queue (link) • Recommendations—like Amazon.com) • Selection—Over 65,000 titles compared w/3,000 in a store • Give you “back of the box” plot and movie info

  5. SWOT • Opportunities • Increase in distribution centers • Internet savvy customers • Distribution center into store? Weakness • Scratches • No instant gratification • have to wait for the movie you want to see • Forget to put it in mail- add time to wait • Threats • Blockbuster • Hollywood Online • Comcast on Demand • TIVO

  6. Membership plans • No contracts! • 1 at-a-time (2 a month) - just $5.99 a month • 1 at-a-time (Unlimited) - just $9.99 a month • 2 at-a-time (4 a month) - just $11.99 a month • 2 at-a-time (Unlimited) - just $14.99 a month • 3 at-a-time (Unlimited) - just $17.99 a month • 4 at-a-time (Unlimited) - just $23.99 a month • 5 at-a-time (Unlimited) - just $29.99 a month • 6 at-a-time (Unlimited) - just $35.99 a month • 7 at-a-time (Unlimited) - just $41.99 a month • 8 at-a-time (Unlimited) - just $47.99 a month

  7. Cost Savings • 2 at a time unlimited • Can rent up to 16 movies/month--$.93/movie • 4/mo at brick and mortar • Because of cost savings and recommendations, members rent 2x as many movies than they did before subscribing

  8. Sources • http://www.netflix.com/Default

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