ITM 707 Lecture Notes - Lecture 2: Reed Hastings, Google Tv, Redbox

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 707
• Professor: Nuru Huda

Document Summary

Netflix was co-founded in 1997 by reed hastings and marc randolph to provide dvds rental online. The company was immediately recognized as a major competitor of blockbuster, who at the time was the leader in dvd rentals. During those times, in regards to streaming services. many competitors were offering comparable services with more features including. Apple itunes, amazon vod, hulu and google tv. To make matters worse, the united states postal services announced its plan to terminate its one-day delivery services, thus, giving netflix any chance of bouncing back and attracting new customers. As a result of the given situations, netflix lost nearly 1 million subscribers, customer demands was at all-time low, investors have lost faith in the company and their stock price tumbled dramatically forcing the. Ceo to write an apology e-mail to its subscribers. Netflix"s primary strategy is focused on the subscription model which allows them to stay in business and remain competitive.