One company that has prospered because of its innovative service and distribution process is Netflix. Netflix is a company that offers on demand video streaming and flat rate dvd and blue ray rental by mail. Netflix was established in 1997 in Los Gatos, California, and it started the subscription service in 1999. In 2009, Netflix offered over 100,000 different dvds and had over 10 million subscribers.
What makes Netflix innovative is the availbility of its products, and the low prices. No longer is there any need to rent a dvd from a rental store for 5 nights and $7 when you only want to watch it once. Netflix offers a larger variety of dvds than any local movie rental store. If you are a subscriber to Netflix, you can go online and pick the movies you want to see. Netflix will mail these different movies to you one at a time. You can keep the movie for one night or for as long as you want for the same price. When you are done with the movie you mail it back to Netflix and your next movie is immediately sent to you. Netflix also offers an on demand service. You can download movies from Netflix directly to your tv. This allows you to be able to pick a movie you want to see and have it immediately available to watch.
Using either of these Netflix options allows you to pick from over 100,000 movies and tv shows. Netflix offers a flat rate price per month no matter how many movies you want to rent through the mail. Netflix found their niche in the market and they will profit from this for many years to come.
