Online Movie Rental
From Isopedia
Technical Information
Customers must compile an online list of DVDs they wish to view. Netflix then sends out the DVDs that were requested by the customer based on availability. After viewing the movies, the customer returns the DVD in the prepaid envelope to the provider. Then, Netflix sends the next DVD on the customer’s list. New customers can participate in a 2-week free trial period. There are no late fees if the account is cancelled before the trial period ends. If the customer decides to keep his/her account, they are already a member and simply have to pick a plan. Netflix offers four plans starting at $9.99. The most popular plan is the $17.99 plan which offers 3-at-a-time and unlimited DVDs. Plans can be cancelled anytime, online, 24 hours a day. Regardless of the chosen plan, Netflix offers free shipping both ways. There are also no late fees or due dates. Customers can rent as many DVDs as they choose from the comfort of their home, and have them delivered usually within 1 business day. Netflix is able to provide this service because they have many warehouses across the country.
Available plans include:
Plan 1: 3 DVDs at-a-time with Unlimited Rentals/month @ $17.99/month
Plan 2: 2 DVDs at-a-time with Unlimited Rentals/month @ $14.99/month
Plan 3: 2 DVDs at-a-time with a Limit of 4 DVDs/month @ $11.99/month
Plan 4: 1 DVD at-a-time with Unlimited Rentals/month @ $9.99/month
- plus any applicable tax
Historical Information
Netflix was the first and largest online-based DVD rental service delivering movie rentals by mail to customers in the United States. Founded by Reed Hastings, Netflix was incorporated on August 29, 1997, and began operations on April 14, 1998. Netflix initiated an initial public offering on May 29, 2002. The company’s headquarters are located in Los Gatos, California. After incurring substantial losses during its first few years, Netflix posted its first profit during the fiscal year of 2003, earning $6.5 million profit on revenues of $272 million. Overall, Netflix is one of the most successful dot-com ventures!
Netflix began as a pay-per-rental method before introducing the monthly rental subscription method in late 1999. Since then, Netflix has built the company around having no due dates, late fees, shipping or handling fees, or per-title rental fees. Customers subscribe online with their movie selections and usually receive them within 1 business day through US mail. Netflix offers a wide selection of movies from classics to new releases. The company has become noted for its extensive collection of movies that are typically difficult to find in regular video stores, including documentaries, Japanese anime, and independent films. In general, Netflix offers five times the selection of a typical video store. Presently, the company has 4 million subscribers and over 55,000 DVD rentals available.
References
Team Members
- Alison Black
- Alison Devine
- Nathan Hawkins
- Nicole Leissing
- Diana Penque
