Netflix and the Use of Ecommerce Essay

3050 Words Jul 31st, 2010 13 Pages
TO: Bus 311, Summer I, 2010

FROM: Group 6.3

SUBJECT: Report on NETFLIX

This report was written under the assumption of complete satisfaction of requirements for Business 311, Information Systems in Global Business Environment, Summer I, 2010, University of Hawaii at Manoa. An analysis of Netflix in Information Systems indicates that the company has been able to use technology and ecommerce in a method that has created a billion dollar entity. Netflix has been successful by improving the movie rental business with the embracing of changing technology and consumer preferences that has revolutionized the way people view movies. Netflix is a company that has shown the power of ecommerce and the success it can bring to
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The price is determined on the age of the movie along with the predicted popularity. As of recently different companies, beginning with FOX have made a deal with Netflix to sell the movie rights at a lower price, but they must wait one month after the movie has been released, to help DVD sales for multiple production companies. Netflix is only allowed a certain amount of each movie upon its release. It is often that over advertising of a movie leads to stock outs, where not enough of the movie is available and customers are left waiting for their movies. Regular intervals also occur where Netflix will have to order another shipment to replace damaged DVDs. Netflix assures it users on its website that all their information is held confidentially, especially the credit card information and mailing addresses that are used in each transaction. Information that is registered on the site becomes the customer’s responsibility to keep private. Netflix keeps track of this information, like age and location to better advertise, although this has caused some customers to be unhappy. Other things like payment dates, movie titles, ratings and addresses are all kept for each user account. Users must also be 18 to have an account. Netflix has a high priority in making sure the information stays safe.
Social/Cultural:
Netflix has become part of people’s day to

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