What Would Netflix Do?

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Blockbuster or Blockbuster LLC an American based provider of home movies and video games rental was Netflix predecessor. At its peak, Blockbuster LL had over 9,000 stores however increased competition from Netflix and Redbox lead to its bankruptcy. Blockbuster filed for bankruptcy in September 23, 2010, and its remaining stores was bough over by satellite television Dish Network. Netflix or Netflix Inc started out 15 years ago as a company that predominantly provided DVD prescription and service however has evolved into a company that provides on demand Internet streaming media to viewers in all of North America. By taking advantage of the rapidly advancing technology and internet speed, Netflix has been able to make evolve with the growing technology and define itself as the largest video and online video distribution.

In my interviews with people regarding what they used before Netflix, a majority of the interviewees said Blockbuster. Often they would either walk, or drive to get movies, and also buy Nintendo games from blockbuster. When asked to compare their blockbuster use to five years ago a majority of them no longer used blockbuster, and have commented on the fact that they no longer see any blockbuster stores around. The use of blockbuster has been replaced by online streaming avenues such as Netflix, Hulu Plus and or Amazon Prime.

Netflix started out as a rent from home DVD service, and was able to provide a broad range of movie offerings about 75, 000 different movies in its first decade. After 10 years, recognizing the prominent increase and betterment of internet services and video streaming technology, Netflix started to offer online streaming content and Blu-ray discs.

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As part of improving its market, Netflix developed its envelope  with an extra-long flap, to make getting and shipping of DVD more effective. The envelope showcased Netflix distribution address and the individual’s one address in one setting making mailing and sending the DVD hassle free.

Netflix took another step in improving it’s to the website by using the recommendation algorithm from its database to determine the kind of movie the consumer enjoys.  The algorithm took the following considerations

  1. the films
  2. customers’ ratings
  3. rented movies
  4. and the combined ratings of all Netflix,

The first algorithm Netflix used was called CineMatch however Netflix launched a competition to find an algorithm that could do better than CineMatch. The team Belkor won first place with a software called Pragmatic Chaos while simonfunk was tied for third.

Pragmatic Chaos works by taking  into consideration the CineMatch database for people who have rated the same movie, determined  which of those people have also rated a second movie, calculates the statistical likelihood of  people who liked those movies and continues the process to establish a pattern of correlations between subscribers’ ratings of many different films. The change in the website and its movie recommendations made a significant difference in Netflix ability to provide amazing customer service.

By 2007, high-speed Internet access from home had become more affordable and more common. Netflix got a jump on that market by adding unlimited online streaming as one of its subscription starting in January 2008.When Netflix transitioned its Web site to Amazon’s cloud services in 2010it began by switching from Silverlight to HTML5 to deliver content to more devices with HTML5. Meaning Netflix could be streamed on more web browsers, consoles and mobile devices.

Netflix currently has about a total of 61.4 million subscribers worldwide. In order to keep its subscriber, Netflix has moved on to the next phase by launching its own original tv shows, such as House of Cards and Orange is the New Black. Finally the next step for Netflix in its evolution is to take over the cinema, and stream new movies directly to people as opposed to viewing new movies at the movie theater.

Netflix ability to evolve with the times, embrace new technology, create novel ideas and take advantage of the user’s innovation enabled Netflix to evolve by gaining  consumer attention , embracing new technology and consumer habits.

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