The Netflix Financial System

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History

According to the official Netflix website, Netflix was founded in the year 1997 by Reed Hastings and Marc Randolph. It was created and founded in the state of California. Since then, the company has experience an enormous economic growth and has become a very popular service among all ages. When the company started, this movie rental and broadcasting company was introduced to the public as a regular movie rental business with the exception that the DVDs were mailed directly to its customer’s mailing address. Basically, Netflix didn’t offered any retail stores where the customer could physically go to get its service. Instead, customers have to go online to order Netflix’s services.
Then, Netflix introduced a subscription plan for its customers around the year 1999 which offered unlimited rentals for a monthly fee ("A brief history of the company that revolutionized watching of movies and TV shows"). By introducing its subscription plan, Netflix increased its popularity since it was convenient, …show more content…

It introduced its recommendation system which records the type of content a customer prefers to watch and offers relevant recommendations of the available TV shows, movies, and documentaries. Then, the company introduced to its customers the streaming service. This service enables the customer to rent and watch movies instantly to a computer connected to the internet. As a result, customers didn’t have to wait for their rental to arrive by mail. This became a very important and powerful competitive advantage for Netflix. In addition, by the late 2000’s Netflix was made available in most devices that were connected to the internet which included cellphones, consoles, and entertainment systems such as DVD players and Blu-ray players as a way to increase its popularity and to make the service more

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