|
NETFLIX Free Resources
"Now that the majority o...
"Now that the majority of our customers are getting their DVDs more quickly, we believe that faster service will have a positive impact on our continued success," said Reed Hastings, Netflix CEO and co-founder, who is aiming to increase his 600,000 subscribers, mainly based in the West Coast, to between 5 and 10 million over the next five years or more.
"Netflix is about creating an online movie community of subscribers who love movies and help each other find the gem," said Hastings.
Just at the inception of the DVD craze in the late 1990s, Netflix saw a niche angle in the market and decided to fill it. The company launched its Web site in 1998 as one of the first online DVD rental services with a library that has grown to include more than 11,500 titles, and now commands 98 percent of market share among only a handful of mom-and-pop online video rental sites.
Although movie rental behemoth Blockbuster, a unit of Viacom, has announced plans to open an online rental site this summer, which may pose a formidable threat to Netflix and its comparatively small following.
The advantage Netflix has over larger entities like Blockbuster is that its service does not charge late fees, a revenue source that accounts for between 18-20 percent of Blockbuster's overall profits. Additionally, Netflix only charges a flat $20 monthly fee for unlimited DVD requests, which cost-wise would only account for between four and six DVD rentals per month at traditional video stores.
|
