Review of the Great and All Powerful Netflix – Past, Present and Future

Netflix Inc, previously the David to Blockbuster’s Goliath, was nothing more than a crazy idea by two tech savvy friends back in 1997.  With DVD’s just introduced, the opportunity to rent movies from non-brick and mortar locations became a possibility, albeit a small one.  Somewhat surprisingly, Reed Hastings and Marc Randolph were able to put together close to $3M in capital and the dream of receiving movie rentals right at your door became a reality.

The initial idea was simply to charge a fee for each movie rental.  The total cost after shipping was $6 for each DVD rental and if you decided to buy the DVD you rented, Netflix would simply charge your credit card and the movie was yours.  Problem was, no one owned a DVD player pre-2000 and so the Netflix client base was extremely thin. Luckily for them, a few good partnerships and the success of the DVD turned the first quarterly profit for Netflix in 2003 and there’s been no stopping this red enveloped monster since.

So what makes Netflix so popular?  Convenience, Quality, Pricing.  Simple as that.

Convenience – One of the main reasons Netflix is trouncing Blockbuster right now lies in the simple click and rent ability Netflix has.  Even more convenient is that you can watch thousands of streaming movies online through your Netflix subscription.  No more driving, walking around and waiting in line to rent a movie, everything comes straight to your mailbox and FAST.  Netflix has distribution centers located all across the country so you can be assured that the wait is almost always two business days or less.

Quality- All DVD’s are in excellent condition and if anything ever happens to a DVD while it is shipped or even at your residence, all you have to do is file a quick form online and a replacement DVD will ship in the next business day.  The online movies you have available to you are also of excellent quality.  Back when they first became available, Mac’s could not use the function and the video was extremely choppy for PC users.  My, they've come a long way.

Pricing- In store rental charges from Blockbuster (Around $5 for a new rental) pale in comparison to the plans you have available for Netflix.  Below is a current pricing list for Netflix.  I think you'll find the 3 DVD's at a time to be the best bang for your buck but there are a wide variety of plans for all types of movie watchers.  I'm also pretty sure they have the 8 DVD plan listed just for humor.

In addition to the low pricing Netflix has to offer, they are famous for their Two Week Free Trial.  Sign up, select the 3 DVD’s at a time option, and watch six movies in two weeks.  (Or nine movies if you're fast!) If you don’t like what you see, make sure you cancel before the 15^th day and get out without paying a penny.

So where does Netflix go from here?  Well the future isn’t looking too bright, as the DVD will inevitably be phased out just like the videotape was.  I know Microsoft and Apple are going to be kicking their streaming movie apps into full gear at the turn of the decade but it’s tough to bet against a company that had 23 consecutive quarterly losses!  Look for Netflix to enhance their features, lengthen their Two Week Free Trial Offer and possibly create a way to rent DVD’s that filter straight to your brain.