The Rise of Netflix

           Once upon a time, Blockbuster Video was the premier video rental service in the United States.  For decades the dominant video store sprawled all across the country forcing mom and pop video rental stores out of business.  Independent video stores were no match for the multimillion dollar corporation and for many years they operated their business with virtually no competition.  But with the recent rise of online video streaming, Blockbuster is now a thing of the past. 

Netflix, which originally started as a monthly service providing movies by mail order, began incorporating this idea of instant streaming into their monthly package as they foresaw a rise in demand for the service.  Today, they are the leading provider of subscription live stream movies and television on the internet.  In 2011, Netflix surpassed the mark of 20 million subscribers in Canada and the US making it the second leading video subscription service behind only Comcast.  A recent study has shown that during peak the hours of internet use, 8 to 10 pm, Netflix streaming represents over 20% of the downstream internet traffic.  Needless to say, Netflix has become an extremely popular and profitable organization.

            But how did Netflix accomplish so much, so quick?  In my opinion, they got to where they are now by a brilliant marketing scheme that directs their streaming service right to their target market; young adults.  Now when you buy a Sony Playstation 3, Microsoft Xbox 360 or Nintendo Wii, all platforms come with a built in program that allows easy access of Netflix streaming as long as you have an active subscription.  So what does this mean to the consumer?  No longer do you have to sit in front of a tiny computer screen to watch live stream of your favorite shows; now you can watch them right on your television.  I personally have a PS3 and love the service offered by Netflix; it is just too cheap to pass up at only $10 per month.  It has even caused us to cancel our cable television as we no longer see the need anymore for Netflix has satisfied that need. That being said, I must admit their marketing strategy worked on me.

            What are your opinions of this service?  How often do you stream video on your computer or game system?  Do you personally have a Netflix subscription or do you still rent movies from the video store?  Also, what do you think of the recent emergence of Redbox?  Do you think it will threaten Netflix?

Here is the article I found that inspired this blog.

http://dealbook.nytimes.com/2011/02/24/blockbusters-fall-and-netflixs-rise-in-pictures/?ref=netflixinc

In Response to Sylvie's Post on 2/6

While the iPad is undoubtedly one of the more popular technological products on the market today, I do not see there being any possible way they could take place of laptops.  For starters, I think laptops and iPads have very different purposes.  When I think of the iPad, I think of a device designed for leisure and enjoyment.  When I think of a laptop, a device designed for more practical business or school related work comes to mind. 

The iPad is more aesthetically pleasing, more portable, and has distinctive features such as a number of applications and a touch screen.  In terms of entertainment, the iPad reigns supreme above all others.  Along with this, it has standard programs found on a laptop such as Safari and iTunes.  But unlike the standard laptop, the iPad has less RAM and hard-drive memory, which makes it insufficient in comparison to the practicality of a laptop.  Because of this you can only run a limited amount of programs at once and hold a limited amount of information and documents.  But perhaps the biggest downfall of the iPad is that it doesn’t have a physical keyboard.  Yet, if it had a physical keyboard it would basically be a laptop.  In order for the iPad to replace the laptop, it needs to be capable of more practical use, and not just for entertainment.  This isn’t to say I could never see the iPad taking the laptops place in the future, but for now I think laptops are here to stay.  As long as there is still a need for practical computer programs such as word processors and spreadsheets, there will be a need for laptops.