Netflix Inc
Business Description
Netflix Inc. is the world’s leading Internet subscription service for
enjoying TV shows and movies. Our subscribers can instantly watch unlimited
TV shows and movies streamed over the Internet to their TVs, computers and mobile
devices and, in the United States, subscribers can also receive standard definition
DVDs, and their high definition successor, Blu-ray discs, delivered quickly
to their homes.
Company obtains content from various studios and other content providers through
fixed-fee licenses, revenue sharing agreements and direct purchases. Netflix
Inc. markets its service through various channels, including online advertising,
broad-based media, such as television and radio, as well as various strategic
partnerships. In connection with marketing the service, company offers free-trial
memberships to new and certain rejoining members. Rejoining members are an important
source of subscriber additions.
Netflix Inc. is a pioneer in the Internet delivery of TV shows and movies,
launching its streaming service in 2007. Since this launch, company has developed
an ecosystem of Internet-connected devices and has licensed increasing amounts
of content that enable consumers to enjoy TV shows and movies directly on their
TVs, computers and mobile devices. As a result of these efforts, Netflix Inc.
has experienced growing consumer acceptance of and interest in the delivery
of TV shows and movies directly over the Internet.
Competition
The market for entertainment video is intensely competitive and subject to rapid
change. New competitors may be able to launch new businesses at relatively low
cost. Many consumers maintain simultaneous relationships with multiple entertainment
video providers and can easily shift spending from one provider to another.
Our principal competitors include:
• Multichannel video programming distributors (MVPDs) with free TV Everywhere
and VOD (video-on-demand) content including cable providers, such as Time Warner
and Comcast; direct broadcast satellite providers, such as DIRECTV and Echostar;
and telecommunication providers such as AT&T and Verizon;
• Internet movie and TV content providers, such as Apple’s iTunes,
Amazon.com, Hulu.com and Google’s YouTube;
• DVD rental outlets and kiosk services, such as Blockbuster and Redbox;
• Entertainment video retailers, such as Best Buy, Wal-Mart and Amazon.com.
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