Netflix is a subscription service that provides streaming video over the Internet or delivers DVDs via mail.

Question:

Netflix is a subscription service that provides streaming video over the Internet or delivers DVDs via mail. Netflix changed the way people rent movies and TV shows by cutting out the “shop front.” For a monthly fee, consumers have increased selections, no late fees, the ability to rent as many times as they like, and no need to leave their homes. Headquartered in Silicon Valley, CA, Netflix maintains centers all over the country, including remote places like Hawaii and Alaska, in order to maintain the company’s business model of speedy delivery and catering to consumers’ convenience needs.
1. How has Netflix’s business model successfully tapped into consumer behavior?
2. How does Netflix use the consumer behavior and the Internet to avoid becoming obsolete as technology changes?
Distribution
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