It is the story of how Netflix started from DVDs to showing videos on their platform

1. The success story of a company, name Netflix. In order to get
started, we need to go way back. I am sure we all must have
remembered video road stores, right? Basically, in US video stores
were stores where people rent a DVD of a movies they like. It used to
be lengthy process. So, if I needed to get a copy of Friends. I must
drive to the store, look for the series ‘Friends’ by going through every
single aisle until I find it. Bring it back home. Watch it, back it in time
so that the other customers could watch the same movie. Yeah, but
what if I could not return it back on time. This is where it all started.
Started by one guy. His name was Reed Hasting. It all started when
he could not return the rented DVD back in time and ended up
paying $40 in store. So, he wanted to fill up that could simplify this
whole process and save time and $40 for you. So, all these viral
stores had this business model that was totally making profit out of
this So-called late fee. So, he decided to join them with a new
business model known is DVD by mail. So, clients would ask for
movies and he would just send it to the address and users will mail
back and after watching it. But later, he thought “are not we making
customers pay lot of money. Every time they went to CD or DVD, we
are making them paid 2 or $3. That is that is not good. Let us try
something new. Let us move to this new model called subscription-
based model. What is that you say? Let me have every single movie I
want for only $20 a month, but one by one.” After few years keeping
the same model, he decided to try this new technology of video
streaming. The name of this model is subscription-based video on
demand. Again, as name suggested he were allowing users to play
the video whenever they want. Then why would he even bother is
moving to a new business model. So, the thing is if 5 customers
rented the same movie then I must buy 5 DVD. First, by moving to
this model I would not need to buy multiple DVDs and store all this
DVDs separately. Throwing old ones, making space for the new ones,
all these hassles were completely gone out of window. So, he knew
what that means, right? Going online means going global. He would

2. have white customer reach from all over the world. That is an
advantage for them. Why would Someone even bother paying them
for Something align? First, if I am customer someone would bring me
a movie without me having to go to the store, I would do that. It
helps me save my time, you know? Again, $20 for a month. I could
just watch them in all range of devices like TV, computer, mobile
phones, tablet, Consoles. I would even get a recommendation based
on movies what I watched before. I do not even need to bother
searching for the movies that I might like. And finally, I have this legal
access to reach movie database. So, instead of going through Isles.
Video searching would be lot faster. So, I want to give a basic
overview of the technology. So, first these movies have got this
license to be stored in server but for this exact work they have used
Amazon’s elastic compute cloud server also known as EC. It is
basically a cloud technology in form of platform as a service. So, the
files are stored in server but when user access it using mobile apple
with web browsers that connected via application interface which
then connects to content delivery networks often known CDN which
usually browse the replica of real movie stored in network known as
cash and try to display it to the users. It helps to load files quickly
with less bandwidth consumption. When user is provided with
recommendation or video search the user’s algorithm of their own
from Netflix Prize contest which is based on Neuro Prediction
Network. It displays movie recommendation based on this algorithm.
Whenever they select the movies, they want to play it locates to use
location CDN, determine speed of their network, shows the video
files via HTML 5 technology and streaming services for codecs. So,
this was Some basic overview of technologies. In simple words. Let
us talk about what kind of innovation it is. It might look like an
incremental innovation because we know it all started with one
concept of movie rental and then it was further enhanced to turn
into innovation, but it is a disruptive innovation. Because disruptive
innovation usually starts at the bottom of the market and then

3. harshly move to the top, displacing the established companies,
Netflix did something similar setup approaching every movie loving
customer event for those who are left unattended or unapproached
by their competitor Block watch LLC in Hollywood video. Since Netflix
was not interfering. with their business blockbuster. The movie giant
did not care much about the Netflix which Netflix took as an
advantage for innovation. And it has been able to shutdown
blockbuster LLC. There is no doubt that it is a disruptive innovation.
But what about the source of innovation? Remember, have it all
started? Yeah, with just an idea of single Person branched out with 2
or 3 individuals working on the same idea they believed to be a
solution. The source and origin of an innovation which is
entrepreneurial, but Netflix has been here since God knows how
long? But why now? Why is not able to shut down the blockbuster
just now. Why not 3 years ago? Why not at the beginning? Well, with
the rise of increasing technologies in gadgets be cheaper and people
being people you know normally looking for easy way to do things. It
is time people that fed up with Blockbuster and its link the process
allowing us watch movie without moving in computer is the main
reason of Netflix being a success and blockbusters demise. So, as a
result of innovation the market growth has been massive for Netflix.
After the introduction of video demand service, Netflix currently is
providing its services in more than 190 countries in 17 different
languages, it has round 83 million paid subscribers worldwide with
more than 6.78 billion dollars of revenue. Even though the use of
Netflix has been massive in other countries such US and Canada, it
has not been able to get subscribers of the Indian market. This might
be because of the bandwidth issue or limited shows compared to US.
Currently strong version of Netflix has 1500 stars where is the US
version has about 9000 shows.