How NetFlix Works

By Kim S. Nash  |  Posted 2004-01-16 Print this article Print

DVD renter Netflix uses customer-tracking software and elbow grease to keep the crowds coming.

How NetFlix Works

Headquarters: 970 University Ave., Los Gatos, CA 95032

Phone: (408) 399-3700

Business: Online DVD rentals

Vice President, Information Technology: Mike Osier

Financials, trailing 12 months: $153 million in sales; $2 million in profits as of Sept. 30.

Challenge: Outrun Walmart.com, which recently started a similar but less expensive DVD-by-mail rental service.

Baseline Goals:

  • 5 million subscribers by 2007, up from 1.5 million now.

  • $1 billion in annual sales by 2007, up from $153 million.

  • 13.2 million trial subscribers by 2007, up from 3.1 million to date.

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    Senior Writer
    Kim has covered the business of technology for 14 years, doing investigative work and writing about legal issues in the industry, including Microsoft Corp.'s antitrust trial. She has won numerous awards and has a B.S. degree in journalism from Boston University.

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