The Netflix Financial System

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About NetFlix
History Netflix
Netflix was founded by Reed Hastings and Marc Randolph. They also known as Veteran “New Technology” entrepreneurs that founded Netflix in 1997 in Scotts Valley, California. They and Mitch Lowe came up with idea for rent by mail video business. Netflix came up with idea for rent by mail video business. So, they make website and released on April 14, 1998 and they take advantages of the DVD system that the company believe DVD system will replace VHS. In early year they several company with same system so the company do some marketing with do collaborate with Toshiba and Sony the pioneer of DVD system, do widely publicized in the media , and do early truce with amazon to boots DVD sales and the amazon give promotion …show more content…

So, Netflix give some guaranteed to customer that all DVD titles would be in stock and delivered quickly and directly to customer door house via USPS. in early year system of Netflix is offered 7 day pay per rental model at a cost $4 per DVD and $2 for applicable late fees. In 1999, Netflix introduced its monthly subscribes plan with changing $15.95 per month and allowing four DVD rental per shipment and no due dates or late fee. This system make Netflix become dominant in rent by mail business. In 2000, Netflix shifted their goal from DVD rental to steaming video. The company do this with Hastings stating and foreseeing that “DVD is not a hundred year format”. So Hastings introduced online content format so the costumer can watch the video and TV episode in their computer without additional cost. But this system have some problem with their movies stock. So, to increase their movies stock they collaborate with Movie Producer like 20th Century, Warner Brother or Sony Pictures. And in 2009 The company have offered titles in HD 720 progressive video format and compatibility with games …show more content…

It happen to keep them work in maximal condition and they have stock to make some fast decision without ask permission from other shareholder. Share that they have can be traded but for the first trade they must do insider trading system where the director, employee and related individual in Netflix can buy stock or warranty. They do it to not increase amounts of stock at outside of company.
Board Of Director Contribution and International Environmental
Board director have many contribution based on his background knowledge, skill, and connection. One of contribution that board of director is represent their shareholder desire and interest.
The board range must have people with high class skilled individual base in sector he will work. It happen to make a good combination to get maximize of company works. The board in Netflix must have background in Operation, Marketing, Human Resources, Financial, Technology, and Investing based what board is they work.
Netflix is an international-wide business. Make board of director must have international background in work in international pressure. Board of Director have good background in experience and education in management of international company
Board Of Director Serving

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