By: Chelsi Bauman

Lisa Fritz

Jeff Heim

What is it…

• Launched in 1999• The world's largest online DVD movie rental service

– 65,000 titles including hard to find Indie films, docs, and TV series

– 200 genres• Have 5.7 mil. Subscribers• Goal is to be largest and most influential movie

supplier- allowing filmmakers to make more films• Voted #1 customer satisfied website for 3

consecutive periods• Buy DVD’s too

How it works…

• Sign up for membership – 10 membership options including free trial

• Choose movies for your “queue”• Free delivery in a couple of days• Keep them as long as you want• Prepaid return envelopes• Get next movie in queue• “No late fees, No due dates”

SWOT

Strengths – What makes them great?• Convenience

– Delivery straight to mailbox– Speed

• 41 shipping centers across US are key for overnight delivery• They plan on opening more shipping centers

– Services!• Profiles—more than one on an account• Friends—Share movie ideas and info with friends• Personal movie queue (link)• Recommendations—like Amazon.com)• Selection—Over 65,000 titles

compared w/3,000 in a store

– Give you “back of the box” plot and movie info

SWOT

Weakness• Scratches• No instant gratification

– have to wait for the movie you want to see

• Forget to put it in mail- add time to wait

Opportunities• Increase in distribution centers• Internet savvy customers• Distribution center into store?

Threats• Blockbuster• Hollywood Online• Comcast on Demand• TIVO

Membership plans

• No contracts!• 1 at-a-time (2 a month) - just $5.99 a month• 1 at-a-time (Unlimited) - just $9.99 a month• 2 at-a-time (4 a month) - just $11.99 a month• 2 at-a-time (Unlimited) - just $14.99 a month• 3 at-a-time (Unlimited) - just $17.99 a month• 4 at-a-time (Unlimited) - just $23.99 a month• 5 at-a-time (Unlimited) - just $29.99 a month• 6 at-a-time (Unlimited) - just $35.99 a month• 7 at-a-time (Unlimited) - just $41.99 a month• 8 at-a-time (Unlimited) - just $47.99 a month

Cost Savings

• 2 at a time unlimited– Can rent up to 16 movies/month--$.93/movie– 4/mo at brick and mortar– Because of cost savings and recommendations,

members rent 2x as many movies than they did before subscribing

Sources

• http://www.netflix.com/Default