Netflix is an industry changing business. I remember how excited I was at going to Blockbuster on the weekend. Now I am amazed at how easy and efficient Netflix is. For those that have wondered how they get and return your movies so quickly this article is for you.
(HT/ Marginal Revolution)
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What a neat article. For journalism majors, it says, "to get and stay employed and to leap ahead of the competition of bloggers, tweeters, and other less-intelligent life forms, the key is to use your 'press pass' and actually go to the places you have access to and wish to write about."
ReplyDeleteThis was an article of experience. You could spend three months browsing the Internet and doing trans-telephonic interviews, but nothing gets words on a page like being there.
What's that stupid archaic quote? 90% of success is just showing up? Something like that. I'm sure I could find it on Wikipedia.
Notice the photo accompanying the article. Again, you gotta be there to get the results.
To be there, you gotta have credentials. Netflix wouldn't let any old schmoe in. That's apparent in the tone of the article. You have to work for the Chicago Tribune if you want access, and even then it's limited access.
Q. What's the future of journalism?
A. Don't worry about it.
I didn't mean to focus so much on journalism. Netflix really runs a tight scheme. I would commend them if I was in the mood. Sounds like they hire retirees. That brings to mind the old minimum wage argument...
I remember when my family made the transition to Netflix. At first I do admit I missed going to Blockbuster. I did hold some sort of value in making that trip to the movie store, browsing through all the movies and begging my dad for two instead of one (I usually one the argument). It was obvious however that Netflix was a better investment. We got three movies at once and the choices online were far more vast than in a store. And in reality the movies really did come back within three days. My new routine turned into the excitement I got when I would see the little red envelope and that thrill of excitement would run through my veins, wondering what I had gotten today (I know my life was sad). Another positive about the business I did not foresee when I was younger is how it markets to college students as well. My roommate now has her own Netflix account which is only about ten dollars a month, something a college student can definitely afford and comes by mail right to the dorm. Overall I think this switch to an online source was a step into the next generation and I am just waiting until they take it to the next level.
ReplyDeleteBecca Keener
ReplyDeleteThe American Economy 10-10:50
I think it is crazy how the movie rental market has changed. It used to be my family occasionally stopping into a rental store a few weekends, and now you can get them mailed straight to your door. It's quite convenient, especially with a large family like mine. Netflix has pattented a great system.
Since Netflix came up with movies through the mail, they have control of the market. Suing Blockbuster for using their idea sealed the deal for this monopoly. Blockbuster cannot compete with Netflix because of this. They can sure try to, but the chances are slim.
One thing I never thought about before was the warehouse of movies behind the Netflix system. I know the movies have to come from some where, but I never though about these great big warehouses full of movies. It must take a lot to keep them organized and running smoothly, especially when you have to deal with scratched DVDs and mismatched cases. It is kind of funny how the location is a secret. I never thought people would try to find it anyways, but I guess people do.
The transformation of the movie rental industry has been incredible. It started with the move from VHS to DVD, and that has made it easier to distribute movie's particularly in the way Netflix does it now.
ReplyDeletePersonally, I would rather go to a movie store, like blockbuster, and browse for movies. However, there is no argument that the Netflix business model has made quicker, easier, and overall more convenient to rent movies.
Another source of movie rental is RedBox. Which is like a vending machine you can find at most grocery stores these days. You just go and scan your credit card, choose the movie you want, and it will charge you $1 for each day you have it out. To return it you just stick it back in the machine.
RedBox is probably cheaper than Netflix and almost as easy, but you also do not get the wide range of movies to select from as you do with Netflix. There is no doubt that has made advancements in its industry that have not only made Netflix the gold standard, but have essentially changed the face of the entire industry.
This article was very surprising to me even though I knew that they must be fast in their process. While my roommates and I are subscribers of Netflix, I never imagined that they do business quite this extensively. The statistics are astounding. Sorting a minimum of 650 envelopes an hour? Impressive if you ask me.
ReplyDeleteOn the Blockbuster subject, I feel like Netflix wouldn't have had to sue. They seem so far advanced and organized in their process that it would take a long time for Blockbuster to catch up.
In response to Sean's comment, Redbox may not actually be cheaper. Depending on how many movies you rent a week, paying a dollar per movie can add up when you can pay a minimum of 9 or so dollars a month to get countless movies, of a larger selection as he mentioned.
Both Netflix and Redbox are very good options though and I think they're much better and easier than paying for Blockbuster!
This was a very fascinating article. I personally am not a big movie watcher so I do not have a subscription to Netflix, but I know plenty of people that do. They all say that Netflix is so quick and easy to use and I guess this article explains why. It seems like the man in charge really knows what he is doing. I found it strange, but very smart that they keep the warehouse locations top secret.
ReplyDeleteAs a journalism major the whole time I was reading this article I just kept thinking about how cool of an experience this journalist must have had when researching this story.
The great thing about Netflix is that you don't have to leave your home. This is what really makes this business, for sure a genius idea. Redbox is also convenient but you have to take the time to travel in order to Redbox a movie, but Redbox is very cheap. With businesses like Netflix and Redbox I think it is fair to say the Blockbuster needs to step it up. I can see businesses like these slowly putting Blockbuster out of business.
I do not miss going to the movie store. For those that are indecisive when it comes to everything, I feel as though the ability to log on line read captions, see pictures, and real reviews all at the same time before a purchase is a much more productive use of time. Being able to compare and contrast a good before a making a decision makes for a more knowledgeable consumer and less regretted choices in the long run.
ReplyDeleteI never thought about the warehouse aspect behind all of this. When I began reading the article, I of course thought secrecy for a movie company was silly, but soon read on to discover that it is indeed necessary to control and effectively manage their business. They seem to be a very efficient company- no pricy logos or fancy décor, a decent receiving and departing model, a locally hired workforce with full benefits, and very organized procedures. Their business model seems to be working very well for them since they seem to be one of the companies in today’s world that are recession proof.
However, looking into the future, I do see a downfall of companies that do not offer immediate over-the-web-to-screen rentals. We are living in a fast pace world where everyone wants everything more quickly. Soon dvds will become obsolete and people will be able to buy and rent digital movies as easily as they do with such programs as iTunes. In this case, it is a good thing that Netflix has not invested a lot into their décor or atmosphere because the building itself and its workers will soon become outdated. Netflix’s immediate over-the-web rentals will skyrocket and their 89 million discs will be recycled and turned into goods that are less perishable.