Bi Tech in Netflix

In: Business and Management

Submitted By Ammy
Words 1127
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Business Model Netflix started as a DVD rental company and has built its reputation through flat-fee unlimited rentals, no due dates, late fees, and shipping and handling fees. As of now the company operates in three market segments i.e. Domestic streaming, International streaming and Domestic DVD. Subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers and mobile devices. In the United States, subscribers can rend DVDs, which are delivered to their homes. Through DVD-by-Mail service, customers can select different movies and TV shows on the Netflix website and receive them in their mail. There are no late fees and customers can keep the DVDs for as long as they want. After watching the movies, they can use a prepaid envelope to return the movies and the next available DVD is mailed to the customer. Since March 2011, Netflix is operating 58 shipping locations in the country. In 2008, in with collaboration with Starz Entertainment, Netflix started online streaming service, Watch Instantly, providing 2500+ titles to its customers (Chmielewski, 2008). In 2010, company signed a $1 billion deal with to stream movies from Paramount, Lions Gate and MGM (Stelter, 2010). As of 2011, Watch Instantly service has first-run rights and back-catalog titles to films from MBM, Lions Gate Entertainment, and Paramount Pictures. It also has back-catalog titles from Time Warner, Universal Pictures, Sony Pictures, 20th Century Fox, Disney and other distributors (Fritz, 2011). Netflix developed its streaming business along side with rental business. Stream business was a new territory with very different dynamics than rental business. Streaming devices were not very popular and selection of content was very limited. Therefore, Netflix offered streaming service to its rental customers in the same…...

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