new trand in business model

May 29th, 2015
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Academy of Art University
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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.

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Running Head: NetFlixNetFlixs Business ModelCustomer Insert His/Her NameUniversity NameHistoryIn 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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