CASE STUDY ON NETFLIX Netflix was founded on August 29, 1997, in Scotts Valley, California when their founders Marc Randolph and Reed Hastings came up with the idea of starting the service of offering online movie rentals. The company began its operations of rental stores with only 30 employees and 925 titles available, which was almost the entire catalogue of DVDs in print at the time, through the pay-per- rent model with rates and due dates. Rentals were around $4 plus a $2 postage charge. After significant growth, Netflix decided to switch to a subscriber-based model. In 2000, Netflix introduced a personalized movie recommendation system. In this system, a user- based rating helps to accurately predict choices for Netflix members. By 2005, the number of Netflix subscribers rose to 4.2 million. On October 1, 2006, Netflix offered a $1,000,000 prize to the first developer of a video-recommendation algorithm that could beat its existing algorithm Cine match, at predicting customer ratings by more than 10%. By 2007 the company decided to move away from its original core business model of DVDs by introducing video on demand via the internet. As a part of the internet streaming strategy, they decided to stream their content on Xbox 360. Blu-Ray disc players and TV set-top boxes. The ventures also partnered with these companies to online streaming their content. With the introduction of the services in Canada in 2010, Netflix also made their services available on the range of Apple products, Nintendo Wii and other internet-connected devices