Netflix Inc. Essay -- essays research papers

Netflix Inc.Company BackgroundNetflix Inc. incorporated in 1997 and made its archetypal public offering in 2002. Netflix is an online image rental service which provides its 3,000,000 subscribers portal to over 40,000 videodisk titles. Although Netflix stocks nearly every title available on videodisk, it does not stock titles containing adult content. The Netflix program allows subscribers to rent as numerous DVDs as they want, and keep them for as great as they want. Three DVDs can be out at a time, as soon as one is returned the next DVD on the subscriber generated movie list is shipped out. The DVDs be delivered for free by the United States Postal Service from regional dissemination centers located throughout the United States. Netflix can have most titles delivered to 90% of its subscribers within one business day of the shipping date. The troupe provides a personalized movie recommendation service that creates customized recommendations for the subscriber. This system is based on customer rental history and the ranges the customers provide to Netflix. The ratings system is a plain 5 star system where 1 star is equal to a bad movie and 5 stars is equal to an excellent movie. Netflix also provides last making information to the subscriber approximately each movie the confederation provides. This information includes the length, rating, cast and crew, special features, screen formats, and plot synopses. Netflix also provides movie reviews written by Netflix editors, subscribers, and movie critics. In addition Netflix provides the average rating that other subscribers gave the title, and displays other titles that the subscriber might enjoy.Netflix has revenue sharing agreements with more than than 67 studios and distributors, and also purchases titles directly from studios, distributors, and independent producers. The major competitors for Netflix are picture show Gallery, Trans World Entertainment, Blockbuster, and Intermix Media.Industry Tr endsSince 1999 the development of spending on DVD purchases and rentals has been incredible. According to Alexander & Associates, Rapidly growing consumer activity and spending has make this industry into a major market phenomenon. The DVD format for enjoying pre-recorded sport at home is extraordinarily popular and consumers are changing their fashion to accommodate it.The VHS market totaled nearly $20 billion... ...ble debt management by having the ability to pay its interest obligations easily. All four of these ratios show us that Netflix is in a good position to service both their long and short term debt obligations, and that they have kept their debt load low and chthonic control.We have found that the gross, operating, and net profit margins are showing us that the company is beginning to post some gains and are improving their profitability. In addition the ROI has increased nearly 4% and the ROE has increased 7%. We see this as a responsible rate of growth which allo ws gross revenue and sales revenues to keep pace with the growth of the company. By controlling their growth Netflix has been able to expand its operations and control their debt.RecommendationsAlthough Netflix has been extremely efficient about the way they are controlling their debt load we believe that they may be missing some opportunities to expand their services. Netflix could possibly free up some cash to explore the market opportunities for service to the video game enthusiast. different than that we really think that if Netflix keeps improving at the steady pace its going, the company will have a bright future.