Monday, November 15, 2004

Netflix streamlines fulfillment to help boost subscriber base

via InternetRetailer.com - Daily News for Thursday, November 11, 2004
"Growth in its market depends on the ease subscribers have of receiving the movies they want through the mail. But to maintain an efficient inventory and fulfillment process, Netflix only promises to ship out whatever is available in its inventory among a subscriber’s top three movie choices. Subscribers can change the order of their choices at any time on Netflix.com, where they can see real-time updates of how long it will take Netflix to deliver any particular movie title. "
"By analyzing subscriber activity and improving the way it fulfills orders, Netflix now is able to ship the top choice on someone’s list nearly all the time, Hastings says.

“In the past, there were more times when we would have to send the No. 2 or 3 movie,” a spokeswoman says. “Now we’re delivering No. 1 movie on subscribers’ lists 95% of the time.”

“The more subscribers watch their favorite movies, they more they stay as customers and the more they tell their friends,” Hastings says.


5 comments:

  1. Netflix is slowing down, going from 2 days to 4 days to geting and reciving my discs.

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  2. Please be aware that shipping times do increase the closer we move towards the holidays and postal volume quadruples. Certain titles may take longer to get to you if they have to come to you from a distribution center which is farther away. Titles arriving back at Netflix on Tuesdays may not get checked in until Wednesday, due to the large volume of returns after weekends.

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  3. Mr. Hastings is ridicilous because of slow service I received a bonus DVD which said "shipping the next day" and then the next day said, "shipping today" for two days. I guess since they didn't ship yet it is still considered next day service.

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  4. Maybe you're in the other 5%.

    ReplyDelete
  5. ...of undesirable "devil customers" which cost Netflix money.

    ReplyDelete