Netflix Case
Shannon Young
Netflix Case
MGT 4800-10
Netflix is a cheap way of home entertainment, do not get me wrong, but they are not fulfilling customer needs. Due to the poor quality of DVD’s and older movie films, they are continuing to loose subscribers on a monthly basis. The online streaming content is very reliable and very convenient for customers. Throughout this paper, I am going to be discussing ways for improvement for Netflix. Netflix is an online subscription-based DVD rental service, and it was first conceived by Hastings after he discovered an overdue rental copy of Apollo 13 in his closet. It was founded in 1997 during the emergent days of Internet retailing, when online competitors to traditional “brick-and-motor” retail stores were gaining prominence. Hasting and his team used the models of the most successful Internet retailers of the time to identify characteristics they thought might appeal to customers: value, convenience and selection.
Why can’t Netflix offer new releases as soon as their competitors? This issue is crucial because it motivates customers to rent newly released movies and watch the films at home with friends for a cheap amount from the competition the company has, such as, Redbox and local movie stores. Netflix can be ordered by mail and also through streaming online. If it is ordered by mail, the movies do not make it to your address right away; they may take up to 2-5 days. If customers wanted the movie or television series right away and didn’t have internet, they could easily go to their local video store to rent the movies and take them home with them. Netflix’s subscription plan offered unlimited monthly rentals, allowing customers to hold up to three movies at a time for a monthly fee of $17.99. This is a very low price for a month of movie subscriptions, but a disadvantage to this is that customers are only able to have three films at a time; so that means that they would have to wait for the movies that
Netflix Case
MGT 4800-10
Netflix is a cheap way of home entertainment, do not get me wrong, but they are not fulfilling customer needs. Due to the poor quality of DVD’s and older movie films, they are continuing to loose subscribers on a monthly basis. The online streaming content is very reliable and very convenient for customers. Throughout this paper, I am going to be discussing ways for improvement for Netflix. Netflix is an online subscription-based DVD rental service, and it was first conceived by Hastings after he discovered an overdue rental copy of Apollo 13 in his closet. It was founded in 1997 during the emergent days of Internet retailing, when online competitors to traditional “brick-and-motor” retail stores were gaining prominence. Hasting and his team used the models of the most successful Internet retailers of the time to identify characteristics they thought might appeal to customers: value, convenience and selection.
Why can’t Netflix offer new releases as soon as their competitors? This issue is crucial because it motivates customers to rent newly released movies and watch the films at home with friends for a cheap amount from the competition the company has, such as, Redbox and local movie stores. Netflix can be ordered by mail and also through streaming online. If it is ordered by mail, the movies do not make it to your address right away; they may take up to 2-5 days. If customers wanted the movie or television series right away and didn’t have internet, they could easily go to their local video store to rent the movies and take them home with them. Netflix’s subscription plan offered unlimited monthly rentals, allowing customers to hold up to three movies at a time for a monthly fee of $17.99. This is a very low price for a month of movie subscriptions, but a disadvantage to this is that customers are only able to have three films at a time; so that means that they would have to wait for the movies that