Analysing NetFlix Performance Essay Example | Topics and Well Written Essays - 500 words

Analysing NetFlix Performance - Essay Example This increased their expenditure on streaming from the US $33 million to the US $200 million per year.On July 12, 2011, they increased their monthly subscription from the US $ 9 to the US $ 15. It takes off after 2003 when the company makes a profit for the first time. Between 2003 and 2009 the growth is steady but slow. The year 2010 find’s the stock taking off in a big way. The reason may be the sudden increase in subscription base or due to the tie-up with Starz Entertainment. The company becomes a dot-com success story. Video rentals are a technology-driven industry. At the time NetFlix entered the market DVD’s were a novelty and were costlier.Internet was also in its infancy. Video Cassettes were the popular medium and it was mostly retail renting. NetFlix made use of the compactness of the DVD and the accessibility of the internet to start online renting, sending the DVDs by mail. Monthly Subscription was another attraction. When the business prospered they tied up with Cable TV operators and Movie producing companies to get new movies at the earliest time. They also made use of the Improvement in the internet speed by offering Movies over the internet by streaming.This meant that no physical media was to be transported and that the user can make his choice online. The Web Portal of the Company also has facilities for registering viewer preferences. Right decisions at the right time and adapting to changing technologies and keeping track of the user preferences are the reason behind NetFlix’s success.The recent dip in stock prices and the negative comments of the customers on the increase in subscription rates are only temporary hiccups.