Netflix

Netflix

When Netflix entered the home DVD rental industry, they rightfully sought after an unmet market. Starters of this company wanted to provide lesser-known films including independent films to customers. Other stores and companies were reluctant to stock large numbers of lesser-known films since demand for those items was highly inconsistent. Chief content officer of the company backs this approach saying, "because the films outside the top twenty are not distributed widely. If you didn't see a movie within six months of when it was in theaters, it often disappears forever." While it is admirable to reach this unmet market, there was the question of how to get customers to watch less popular films.

As Netflix grew, it created a recommendation system for its customers based on a quick survey, movies previously watched, and customer's ratings on a five star scale. Recommendations were a simplified way of keeping larger quantities of new releases in stock and promoting smaller titles. Outgrowing their DVD by mail program, Netflix knew they had to offer even more to gain and retain customers. Online streaming was a major change that forced the company to reevaluate a strategy to reach development goals. Mailing DVDs to purchasers became slow and inefficient with new technology. The establishment now offers their entire catalog of flicks online, allowing users to watch from many different platforms even video game systems.

Through market development, Netflix was able to add an original series, House of Cards, which made history when it won three Emmys this September. The show is said to be partly responsible for three million new members in the first quarter of 2013. Similarly, Netflix created another online series that I personally viewed called Orange is the New Black. It is currently on track to become their new most watched TV series by the end of the year. When I learned, after watching both available seasons of Orange is the New Black¸ that it was a...