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All through this, Netfli...


All through this, Netflix managed the three components of their business namely, Producer, Content, and Consumer, in a fluid synergy that created additional and extended value for first run content. Netflix also created formats for small producers that lacked access to networks, and promoted them through Napster-like discovery and search algorithms.

The adaptive Netflix focus:

* Reliability: A focus on reliability of operations was essential to building an "experience brand" like Amazon.com did. With so many users accessing the Website, and the Internet architecture being a delivery platform itself, a focus on building and maintaining a robust architecture was a key metric.

* Compatibility: Netflix needed to keep presentation formats accessible to users of AOL and other portal presence, a key business alliance, and for all kinds of browsers, including PDAs, where movie selections became more frequent.

* New features: Customized direct email-personalized based on what the user has rented in the past-helped consumers know what new movies were available.

* Distribution center: Dealing with the challenges of a huge distribution center and logistics with the USPS were the most important factor in developing economies of scale. Managing shipping costs in particular affected bottom line profits.


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