Netflix

Guide Note

Netflix is a movie rental service that allows users to rent DVD and Blu-Ray movies via the internet and delivers them via postage. Users select the movies they want to rent and add them to their queue on the web site; the queue is a numbered list of movies that will be delivered. Netflix delivers the movies (anywhere between one and four at a time depending on the specifics of the selected service plan) in the order that they appear in on the list. Users are allowed to keep the movies for as long as they want; there are no late fees only a flat monthly fee. When users return the movies they have, the next set of movies at the top of their queues are delivered.

Fast Facts

1. Established in 1997
2. Headquarters: Los Gatos, California
3. Founder: Reed Hastings
4. Revenue: $688 million (2006)
5. Staff: 1300+

Netflix made a splash right from the beginning of its exitence. At that time, its only competition was brick-and-mortal rental stores, many of which were already feeling the pressure of two large chains, Blockbuster and Hollywood Video. Eventually the Netflix model made too much of an impact on the market for other companies to ignore it: Wal-Mart, Blockbuster, and Hollywood Video all began similar services.