Netflix Risks
Netflix
Netflix was founded in 1997 and is headquartered in Los Gatos, California. Netflix is a company that provides online movie rental subscription services in the United States. The company offers its subscribers access to a library of movie, television, and other filmed entertainment titles on digital versatile disc (DVD) and Blu-Rays. Its members can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and PCs. It also partners with consumer electronics companies to offer a range of devices that can instantly stream movies and TV episodes to members ' TVs from Netflix.
Netflix entered the rental entertainment industry at a time where Blockbuster was king and renting movies required the consumers to drive to the store. However, Netflix realized that through innovation there was a much more efficient and cheaper way to provide the same service than the typical brick-and-mortar companies of the time. Customers of Blockbuster and other store rental places were attracted to the new features (monthly subscription, no late fees) provided by Netflix. Through innovation Netflix basically “changed” the way movie rentals were done and eventually became the leader of movie rental industry while Blockbuster and many other companies eventually became bankrupt. Netflix’s story of success is also one of caution as Netflix realizes that they will continue to face many risks throughout their business cycle and if they don’t anticipate and/or respond correctly, they too could face the same result as Blockbuster.
As of December 31, 2009, Netflix served approximately 12 million subscribers. Currently, Netflix claims on its website to have over 20 million members, making it the leader in rental movie industry. However, Netflix faces many competitors that provide similar services: Comcast, Redbox from Coinstar and even Amazon is planning on also offering streaming services to its prime members. Therefore, if Netflix is to remain
Netflix was founded in 1997 and is headquartered in Los Gatos, California. Netflix is a company that provides online movie rental subscription services in the United States. The company offers its subscribers access to a library of movie, television, and other filmed entertainment titles on digital versatile disc (DVD) and Blu-Rays. Its members can get DVDs delivered to their homes and can instantly watch movies and TV episodes streamed to their TVs and PCs. It also partners with consumer electronics companies to offer a range of devices that can instantly stream movies and TV episodes to members ' TVs from Netflix.
Netflix entered the rental entertainment industry at a time where Blockbuster was king and renting movies required the consumers to drive to the store. However, Netflix realized that through innovation there was a much more efficient and cheaper way to provide the same service than the typical brick-and-mortar companies of the time. Customers of Blockbuster and other store rental places were attracted to the new features (monthly subscription, no late fees) provided by Netflix. Through innovation Netflix basically “changed” the way movie rentals were done and eventually became the leader of movie rental industry while Blockbuster and many other companies eventually became bankrupt. Netflix’s story of success is also one of caution as Netflix realizes that they will continue to face many risks throughout their business cycle and if they don’t anticipate and/or respond correctly, they too could face the same result as Blockbuster.
As of December 31, 2009, Netflix served approximately 12 million subscribers. Currently, Netflix claims on its website to have over 20 million members, making it the leader in rental movie industry. However, Netflix faces many competitors that provide similar services: Comcast, Redbox from Coinstar and even Amazon is planning on also offering streaming services to its prime members. Therefore, if Netflix is to remain