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new trand in business model

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NetFlix
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Running Head: NetFlix
NetFlix’s Business Model
Customer Insert His/Her Name
University Name

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NetFlix
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History
In august 1997, Reed Hasting, Marc Randolph along with Mitch Lowe of Scotts Valley
founded the NetFlix. This business is involved in selling and renting out DVDs over the internet.
The need for such kind of business arises when video stores who mainly rented out DVDs to
different customers were involve in charging extra amount of money as a late fees of renting
DVDs.
The main purpose of NetFlix existence was to no charging late fees on renting DVDs.
The extra benefit that the firm got on involving in such a business was low shipping rates due to
light weights of DVDs. The firm started to operate in April of 1998 and hired total of 30
employees. They created a catalogue of around 925 movies for renting purpose, which include
all kind of movies except those which have potential for some legal issues in certain states.
With the passage of time the started to give rental offers to those whose renting amount
was $15.95 for a month, to select for DVDs of heir choice in advance and further this offer was
modified by giving unlimited rental on that particular amount and they started to charge rents on
monthly basis at that time.
During mid 2000 NetFlix decided to float their common stock of net worth of $86.25
million to public. They backed off from this in July of the same year because for many investors
e-commerce business was a bit new and NetFlix was also new to the market and their initial
profits were not very impressive.
Further more the firm involved themselves in video streaming and downloading movies
and other TV serials directly to their PC of computer devices. This created convenience for
customer as well as firm because shipping charges were eliminated from this method.

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 Running Head: NetFlix NetFlix’s Business Model Customer Insert His/Her Name University Name History In august 1997, Reed Hasting, Marc Randolph along with Mitch Lowe of Scotts Valley founded the NetFlix. This business is involved in selling and renting out DVDs over the internet. The need for such kind of business arises when video stores who mainly rented out DVDs to different customers were involve in charging extra amount of money as a late fees of renting DVDs. The main purpose of NetFlix existence was to no charging late fees on renting DVDs. The extra benefit that the firm got on involving in such a business was low shipping rates due to light weights of DVDs. The firm started to operate in April of 1998 and hired total of 30 employees. They created a catalogue of around 925 movies for renting purpose, which include all kind of movies except those which have potential for some legal issues in certain states. With the passage of time the started to give rental offers to those whose renting amount was $15.95 for a month, to select for DVDs of heir choice in advance and further this offer was modified by giving unlimited rental on that particular amount and they started to charge rents on monthly basis at that time. During mid 2000 NetFlix decided to float their common stock of net worth of $86.25 million to public. They backed off from this in July of the same year because for many investors e-commerce business was a bit new and NetFlix was also new ...
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