Introduction
Movies rental industry has changes rapidly, due to the new introduction of new
technologies. Before 2000, people usually go to place such as Blockbuster or other local
retail stores to rent movies, but now people can easily stay at home using laptop login to a
website such as Netflix to watch movies on line.
Currently people has many different options to view movies, DVDs and TV episodes
through a wide distribution channels and providers. Those options are watching movies
from TV by traditional cable providers; subscribing movie channel only; purchasing DVDs
from retailers; Renting from local retailer stores; renting or downloading DVDs on-line;
and using other illegal file-sharing software.
Netflix now has two services, one is Qwikster- DVD rental through mail, the other is
Netflix- streaming service for TV shows and movies. In the renting DVD discs, the
competitor is Redbox. Unlike Netflix through mail, Redbox self-services DVD kiosks are
place in a lot of retailers and restaurants; it is the leading DVD rental company right now.
In the Internet stream segment, Netflix no doubt is the leading, the main competitors are
Hulu plus and Amazon Prime Instant Video. It is a very competitive industry.
Key factors and strategy for Netflix
DVD by mails option and streaming option
Netflix has more than 120,000 titles for the DVDs on-line, the customers will get the
movies that they choose in one day, and will have no late fee and free return. In order to
deliver DVD on time to customers, Netflix has add more distribution centers to 50 the
