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Their deep movie selection, personalized recommendations, and quick delivery have made Netflix the top-ranked Internet company in customer satisfaction, which has driven rapid growth in subscribers, revenue and earnings (Netflix, 2008).
Netflix started out as a regionally based online movie store in 1998, servicing the San Francisco Bay Area. Their initial model was similar to ground based movie rental companies, such as Blockbuster and Hollywood Video, offering movie rental for a per-unit fee and charging late fees when necessary. The companies first year of operation resulted in a loss; expenses were far greater than revenue and it was clearly time for change...
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