Netflix was created in 1997 by Reed Hastings and fellow software executive Marc Randolph and offered only online movie rentals. Netflix shortly introduced the subscription service for a low monthly fee, which could predict choices for members. Netflix continued to grow and was able to offer streaming in which members could instantly watch movies and television shows on their computers. Shortly after streaming was introduced, Netflix partnered with various electronic companies which allowed them to stream on the Xbox 360, blu-ray players, television boxes and Apple computers. A couple of years later, Netflix was also streamable on the Play Station 3 as well as devices that were connected to the internet including the television. As technology advanced, so did Netflix. They can now stream on the iPad, iPhone, and iPods as well as the Nintendo Wii. Netflix has made it possible for users to access movies and televison shows in virtually any way they prefer. Netflix claims to be the world'd leading internet television network. They have over 33 million members residing in 40 different countries. Each member is able to access their favorite movies and television shows for one low monthly price.
Due to the success Netflix and other pioneering companies, we have slowly seen video stores become virtually nonexistent. Netflix has not only a continuing success, but also continues to grow as technology advances as well as expands to reach more viewers. This has led to Netflix to possess sustained competitive advantage which means that it has a long-lasting competitive advantage in that Netflix has created more value than its rival form. Consumers view Netflix has having a high economic value, meaning the benefits they gain by purchasing Netflix are greater than the economic cost.
The ultimate priority of a company is to insure that its shareholders' wealth is maximized. Netflix has a shocking growth of 13 cents per share on Wednesday. Netflix's financial profile including shareholder information an be found here.
Sources: Netflix.com and Jay B. Barney's Gaining and Sustaining Competitive Advantage
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