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DVD rentals' mail model: from its roots in a dark closet, Netflix has grown by putting a premium on customer satisfaction. (Netflix 5th Anniversary). Laura Dunphy.
Full Text: COPYRIGHT 2003 Reed Business Information
For anyone who has returned to the video store 10 times looking for a film that's never in stock or discovered in his DVD player a rental that should have been brought back days before, Netflix is a wish come true.
CEO Reed Hastings first envisaged subscription rentals years ago after finding a long-overdue copy of Apollo 13 in his closet. About $40 in late fees later, he was mulling plans to turn the traditional rental model--pay per title, for a set time, with late fees--into a system in which customers pay a flat fee to use the service as much as they want each month. DVD made the idea a reality, because the weight and durability of discs made it feasible to send titles via the mail.
After its 1998 founding and launching its subscription service in 1999,...

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Title: Netflix
Approximate word count: 1717
Approximate pages: 7 (250 words per double-spaced page)

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