Netflix

E-Business Strategies, Inc.
October 2002

CASE INSIGHT
Netflix:
Transforming the DVD Rental Business
Do any of these scenarios serious familiar: You’re cleaning your child’s elbow room and you discover a 3-week old bingeal DVD with 2 weeks worth of late fees. You return an unwatched depiction because you didn’t dupe the time to view it and you want to avoid paying the heights late fees. You end up watching movies at inconvenient times so you can get the video back off to store on time. You can’t find the movie you want at the store because it is a new inflammation or a hard to find independent film. The monumental DVD- roueal chains -- Blockbuster, Hollywood Video – and local letting stores are not very forgiving when it comes to late returns and often go for a limited option of movies. So what alternatives do you fool if you are chronic late DVD rental returnee or find you need more time to watch the films you rent? Enter online DVD-rental Web service Netflix.com. With the help of the Internet and the U.S. postal Service (USPS), Netflix is offering an alternate “brick and click” channel to rent DVDs. For a flat monthly fee, you get as many a(prenominal) DVDs as you want and keep them for as long as you want. When you return one or all of them, the next selection on your movie priority list is mailed out.



commonplace return dates and late fees are history. This case study analyzes the opposite facets of the business model of this emerging “Amazon-like” business and highlights the competitive dynamics that are shaking up the stoic movie rental business.

Case Highlights
• The DVD infrastructure has been put in place very quickly. For the last few years, the DVD histrion has become the fastest selling consumer electronics device in history. The outstanding quality of DVDs, the economics, and the adoption by movie studios as a distribution medium is causing a tectonic pocket in home video business from VHS tapes and VCRs. Capitalizing on this wind is...If you want to get a full essay, order it on our website: Ordercustompaper.com



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