Netflix initiated an initial public offering IPO on selling 55

Netflix initiated an initial public offering ipo on

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(IPO) on May 29, 2002, selling 5.5 million shares of common stock at the price of US$15.00 per share. After incurring substantial losses during its first few years, Netflix posted its first profit during fiscal year 2003, earning US$6.5 million profit on revenues of US$272 million. In 2005, 35,000 different film titles were available, and Netflix shipped 1 million DVDs out every day. Netflix developed and maintains an extensive personalized video-recommendation system based on ratings and reviews by its customers in 2006. In February 2007, the company delivered its billionth DVD and began to move away from its original core business model of mailing DVDs by introducing video on demand via the Internet. By 2010, Netflix's streaming business had grown so quickly that within months the company had shifted from the fastest-growing customerof the United States Postal Service's first-class mail service to the biggest source of Internet 5
traffic in North America in the evening. In April 2014, Netflix approached 50 million global subscribers with a 32.3% video streaming market share in the United States.Amazon Instant Video is hosted by the largest e-commerce company in the United States,Amazon.The company rebranded its video services as Amazon Instant Video in 2011, and Amazon Prime members now have access to a large library of movies and TV shows.Recently, Amazon expanded its library with content from HBO. Prime members can now view recent shows like “Girls” and “Veep,” or watch classics such as “The Sopranos.” Amazon Prime currently boasts 20 million users, though it is difficult to determine how many of those use Amazon Instant Video. Hulu is an American online company and ad-supported streaming servicethat offers a selection of TV shows, clips, movies, and more on the free Hulu.com service and Hulu subscription service. The Hulu venture was announced in March 2007 with AOL, MSN, Facebook, Comcast, Myspace and Yahoo! planned as "initial distribution partners". It was reported that in 2011 Hulu made $420 million. The figure was $80 million short of the predicted revenue. By 2015, Hulu reached a 50 percent increase in subscribers and announced that the service had reached nearly 9 million paying subscribers.All three dominant companies have their own competitive position, trying their best to make them unique in the video streaming industry. Netflix's competitive position varies along time. Netflix has been widely recognized as the premium distribution-to-consumer channel for video services ever since its founding in 1997, which challenged brick-and-mortar Blockbusters by offering online movie rentals for a low, monthly subscription. Recently, to further make itself differentiate and innovate from traditional video streaming and its competitors, Netflix also offers access to original Netflix programs. Award-winning series, including “House of Cards” and “Orange is the New Black,”(Moskowitz)Amazon's competitive positioning lays in that 6

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