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NFLX » Topics » Fulfillment Operations

These excerpts taken from the NFLX 10-K filed Feb 25, 2009.

Fulfillment Operations

We currently stock over 100,000 titles on more than 72 million DVDs. Not all titles are available in both standard definition DVD and Blu-ray formats. We have allocated substantial resources to developing, maintaining and testing the technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers. We ship and receive DVDs from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the customer experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal Service.

Fulfillment Operations

We currently stock over 100,000 titles on more than 72 million DVDs. Not all titles are available in both standard definition DVD and Blu-ray formats. We have allocated substantial resources to developing, maintaining and testing the technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers. We ship and receive DVDs from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the customer experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal Service.

Fulfillment Operations

SIZE="2">We currently stock over 100,000 titles on more than 72 million DVDs. Not all titles are available in both standard definition DVD and Blu-ray formats. We have allocated substantial resources to developing, maintaining and testing the
technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers. We ship and receive DVDs
from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the customer experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal
Service.

Fulfillment Operations

SIZE="2">We currently stock over 100,000 titles on more than 72 million DVDs. Not all titles are available in both standard definition DVD and Blu-ray formats. We have allocated substantial resources to developing, maintaining and testing the
technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers. We ship and receive DVDs
from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the customer experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal
Service.

Fulfillment Operations

SIZE="2">We currently stock over 100,000 titles on more than 72 million DVDs. Not all titles are available in both standard definition DVD and Blu-ray formats. We have allocated substantial resources to developing, maintaining and testing the
technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers. We ship and receive DVDs
from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the customer experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal
Service.

These excerpts taken from the NFLX 10-K filed Feb 28, 2008.

Fulfillment Operations

We currently stock approximately 90,000 titles on more than 69 million DVDs. We have allocated substantial resources to developing, maintaining and testing the proprietary technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers.

We ship and receive DVDs from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the subscription experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal Service. We currently do not ship on weekends or holidays.

Fulfillment Operations

FACE="Times New Roman" SIZE="2">We currently stock approximately 90,000 titles on more than 69 million DVDs. We have allocated substantial resources to developing, maintaining and testing the proprietary technology that helps us manage the
fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We ship and receive DVDs from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to
improve the subscription experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal Service. We currently do not ship on weekends or holidays.

FACE="Times New Roman" SIZE="2">Customer Service

We believe that our ability to establish and maintain long-term relationships with
subscribers depends, in part, on the strength of our customer support and service operations. Our customer service center is open seven days a week. In 2007, we substantially increased our investment in customer service in order to improve the
overall quality and level of service to our subscribers. In addition, we continue to focus on eliminating the causes of customer support calls and providing certain self-service features on our Web site, such as the ability to report and correct
most shipping problems. We continue to explore new avenues to deliver efficient problem resolution and feedback channels. Our customer service center is located in Hillsboro, Oregon.

FACE="Times New Roman" SIZE="2">Competition

The market for in-home filmed entertainment is intensely competitive and subject to
rapid change. Many consumers maintain simultaneous relationships with multiple in-home filmed entertainment providers and can easily shift spending from one provider to another. For example, consumers may subscribe to HBO, rent a DVD from
Blockbuster, buy a DVD from Wal-Mart or Amazon, download a movie from Apple, and subscribe to Netflix, or some combination thereof, all in the same month.

FACE="Times New Roman" SIZE="2">Video rental outlets, retailers and kiosk services with whom we compete include Blockbuster, Movie Gallery, Amazon.com, Wal-Mart Stores, Best Buy and Redbox. We believe that we compete with these video rental outlets
and movie retailers primarily on the basis of title selection, convenience and price. We believe that our scalable business model, our subscription service with home delivery and access to our comprehensive library of approximately 90,000 DVD titles
compete favorably against traditional video rental outlets and retailers.

We also compete against other online and store-based DVD
subscription services, such as Blockbuster’s Total Access, subscription entertainment services, such as HBO, Showtime and Starz, pay-per-view and VOD providers and cable and satellite providers.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">VOD and delivery of movies over the Internet may also emerge as a competitive distribution channel. Apple’s video iPod and Apple TV, Amazon’s
Unbox and other companies ranging from Google and Yahoo! to Microsoft and Intel are active in Internet delivery of content. Progress in digital delivery, although slow and scattered, continues to be made. VOD for example, is now widely available to
digital cable subscribers in major metropolitan areas, such as New York, Boston, Los Angeles and San Francisco. Internet delivery of movies to a computer is currently available from providers, such as iTunes, Hulu, Vongo, Movielink and CinemaNow.

While we anticipate that new devices and services for delivery of content will proliferate over the coming years, we believe that DVD, and
its high definition successors, including Blu-ray, will continue to dominate the home entertainment experience in the near term. At some point in the future, digital delivery directly to the home will surpass DVD. Our ability to personalize our
library to each subscriber by leveraging our extensive database of user preferences and our strategy of developing a large and growing subscriber base for DVD rentals positions

 


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us favorably to further develop our digital distribution offering as that market develops. The downloading market is segmented into rental of Internet
delivered content, the download-to-own segment and the advertising-supported online delivery segment, and we believe we will lead the rental segment with our instant-watching feature as it develops.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">In late 2006, Blockbuster launched its integrated store-based and online program, Total Access, whereby Blockbuster online subscribers may return DVDs
delivered to them from Blockbuster Online to Blockbuster stores in exchange for an in-store rental. Total Access was aggressively priced and experienced rapid subscriber growth and large operating losses in the first half of 2007. In the second
half of 2007, Blockbuster adopted a new competitive strategy which emphasized profitable growth. As part of this new strategy, Blockbuster reduced their marketing spending and raised prices on Total Access, which we believe contributed to an
acceleration in our subscriber growth.

We believe we are able to provide greater satisfaction for consumers who subscribe to our service
due to our focused attention to the business of online subscription rental and the broad and deep selection of DVD titles we offer subscribers. In addition, we have the ability to personalize our library to each subscriber based on their selection
history, personal ratings and the tastes and preferences of similar users through our recommendation service and extensive database of user preferences, as well as the ease and speed with which subscribers are able to select, receive and return
DVDs.

This excerpt taken from the NFLX 10-K filed Feb 28, 2007.

Fulfillment Operations

We currently stock more than 70,000 titles on more than 55 million DVDs. We have allocated substantial resources to developing, maintaining and testing the proprietary technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers.

We ship and receive DVDs from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the subscription experience for subscribers by shortening the transit time for our DVDs through the U.S. Postal Service. We currently do not ship on weekends or holidays.

This excerpt taken from the NFLX 10-K filed Mar 16, 2006.

Fulfillment Operations

 

We currently stock more than 55,000 titles on more than 25 million DVDs. We have allocated substantial resources to developing, maintaining and testing the proprietary technology that helps us manage the fulfillment of individual orders and the integration of our Web site, transaction processing systems, fulfillment operations, inventory levels and coordination of our shipping centers.

 

We ship and receive DVDs from a nationwide network of shipping centers located throughout the United States. We believe our shipping centers allow us to improve the subscription experience for subscribers by

 

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shortening the transit time for our DVDs through the U.S. Postal Service. We currently do not ship on weekends or holidays.

 

EXCERPTS ON THIS PAGE:

10-K (5 sections)
Feb 25, 2009
10-K (2 sections)
Feb 28, 2008
10-K
Feb 28, 2007
10-K
Mar 16, 2006

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