Netflix Marketing Promotion

Reed Hasting was charged late fees for returning a rented copy of Apollo 13. This inspired him and Marc Randolph, previous coworker at Pure Software, to create Netflix in 1997. The following year the website was launch with an online version of pay-per-rental model ($4.00 per rental plus $2.00 in postage; late fees applied). In September 1999, monthly subscription was introduced. Since then it has a reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping or handling fees, or per title rental fees. Netflix developed and maintains an extensive personalized video-recommendation system based on ratings and reviews by its customers. On October 1, 2006, Netflix offered a $1,000,000 prize to the first developer of a video-recommendation algorithm that could beat its existing algorithm, Cinematch, at predicting customer ratings by more than 10%. Netflix has played a prominent role in independent film distribution. Through a division called Red Envelope Entertainment but it closed in 2008, in part to avoid competition with its studio partners. Netflix initiated an initial public offering (IPO) on May 29, 2002, selling 5,500,000 shares of common stock at the price of US $15.00 per share. On June 14, 2002, the company sold an additional 825,000 shares of common stock at the same price. After incurring substantial losses during its first few years, Netflix posted its first profit during fiscal year 2003, earning US $6.5 million profit on revenues of US $272 million. The company is well known for its worker-oriented culture, including unlimited vacation time for salaried workers and allowing those employees to take any amount of their paychecks in stock options. Netflix has been one of the most successful dot-com ventures. A The New York Times article from September 2002, said that, at the time, Netflix mailed about 190,000 discs per day to its 670,000 monthly subscribers.[22] The company 's published subscriber count

References: 1. ^ Dornhelm, Rachel (December 8, 2006). "Netflix expands indie film biz". American Public Media. Retrieved December 11, 2006. 2. ^ Jesdanun, Anick (July 23, 2008). "Netflix shuts movie financing arm to focus on core". Associated Press. Retrieved August 11, 2008. 3. ^ Goldstein, Gregg (July 22, 2008). "Netflix closing Red Envelope". The Hollywood Reporter. Retrieved August 11, 2008.[dead link] 4. ^ Blitstein, Ryan (March 22, 2007). "Vacation policy at Netflix: Take as much as you want". Pittsburgh Post-Gazette. Retrieved November 10, 2008. 5. ^ Wayner, Peter (September 23, 2002). "nytimes.com".The New York Times. 6. ^ Hastings, Reed (2011-09-18). "The Official Netflix Blog : US & Canada: An Explanation and Some Reflections". Blog.netflix.com. Retrieved 2012-06-14. 7. ^ Nowak, Peter (September 22, 2010). "Netflix launches Canadian movie service". CBC News. Retrieved July 2, 2012. 8. ^ Whitehouse, David (June 3, 2011). "Netflix to Expand in Europe, Starting With Spain, Figaro Says". Bloomberg. Retrieved June 29, 2011.