Netflix Management Essay

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Netflix Final Project Bojana Bojanovic Tiffany Miletich, Teresa S. McCurry, April 10, 2015 Strategic Management Mrs. Talley I. Current Situation Netflix currently has 57 million members in over 50 countries worldwide. The network setup offers its members Domestic, International streaming as well as Domestic DVD. Their Domestic and International streaming revenues from monthly membership fees for services offering only streaming content. The Domestic DVD specifically derives income from monthly membership consisting of DVD-by-mail, even though it has minimized its sources since most members nowadays are able to view as an online stream through their network. The company`s focus is to expand its streaming subscription business as domestically so internationally. Netflix History: Netflix started in 1997 by a man named, “Reed Hastings after receiving a $40 late fee from a video rental store. He quickly began coming up with different ideas about how to create a mail-based movie rental business.” (Start of Netflix, 2015). This was truly a great idea, there are so many busy and forgetful people that have really benefited from this idea over the years. It is interesting that Reeds $40.00 late fee is what drove this idea into an action and later on into a successful business. As we continued our research we found that, in his trial run, “Hastings bought several CDs and mailed them to himself. He found it only took 24 hours and they arrived without a scratch.” (Start of Netflix, 2015). This was a very clever way to base trial and error, and as we see it worked quickly and really quite effortlessly. Once Hastings found that no harm would come of the DVD’s by mail he then begun testing his idea on the public, however; “after an unpopular non-subscription DVD rental idea, Hastings launched a subscription service with a free trial in 1999. When that first month

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