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Netflix Case Analysis.pdf - Netflix Case Analysis Industry...

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Netflix Case AnalysisIndustry AnalysisNetflix began as a streaming service and DVD-by-mail company. Services were initiallylinked, and consumers could add-on streaming services to their DVD rental, for simply$2 more. Reed Hastings, founder and CEO noticed the need for the two to becomeseparate entities in order to better ensure the success of both. The cost structures andbenefits differed and needed to be marketed in such a manner.The initial thought for Netflix occurred when Hastings discovered an old copy ofApollo13in his closet. The concept was to appeal to the new technology adopters, andprovide better in-home movie services. Focusing on those aspects, a website wascreated, which allowed consumers to sort through the selections by various categories,such as the movie title, actor/actress, director, and genre. Utilizing the search engineallowed customers to build a list known as aqueof movies for Netflix to mail out

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