Question: Netflix was founded in 1998 as a Web-based DVD mail service with a flat monthly fee and unlimited rentals without due dates or late fees.

Netflix was founded in 1998 as a Web-based DVD mail service with a flat monthly fee and

unlimited rentals without due dates or late fees. The company is credited with disrupting the

movie rental marketplace and putting established competitors like Blockbuster Video out of

business. Although Netflix lost money rapidly in their early years, the company continued to

refine their business model and grow their subscriber base, focusing on site features like their

personalized recommendation system. Netflix became profitable in 2003, at which point it

had approximately 1 million subscribers.

However, Netflix started to become the juggernaut it is today in 2007, when it launched its

content streaming service. Netflix felt the coming shift away from DVDs and towards on

demand streaming video earlier than most, and they quickly refocused their business model to capitalize. In a matter of months, Netflix went from the fastest-growing customer of the

United States Postal Service to the biggest source of Internet traffic in the evening. Netflix

streams both TV and movies. In 2013, Netflix launched their first original show, House of

Cards. The company now has approximately forty original shows and has renewed many

other shows that were canceled by their original networks. These offerings help Netflix

distinguish themselves from competing streaming services like Hulu and Mazon Prime and

lure former cable subscribers who have cut the cord in favor of streaming services. Today,

Netflix has 81 million subscribers and has revenue well upwards of $6 billion.

However, the transition from DVD mailing service to content streaming giant wasnt without

challenges. Streaming video services accounted for approximately 78 percent of all Internet

traffic in 2015, and Netflix towered over its competitors with a whopping 37 percent of all

Internet traffic (YouTube was next at almost 18 percent, less than half of Netflix). One day

of Netflix traffic today is greater than the amount of daily traffic on the entire Internet in its

early years.

After years of struggling to keep pace with user demand, Netflix now relies on mazon

Web Services (AWS) for its streaming capability. Known first and foremost as the giant of

online retailing, mazon launched its AWS service when it realized that the computing

infrastructure it had built to support its site could be useful to other companies as well.

AWS is the leading cloud services provider, with hundreds of thousands of customers in 190

countries across the world. AWS provides a full set of cloud computing and storage services

for companies of all sizes, from small businesses to the literal biggest streaming site on earth

in Netflix. AWS allows clients to pay for only the computing power that they use, allowing

them to both save money and scale with demand.

In 2009, Netflix began its transition to AWS to support its streaming business, and in 2010

the company launched its iPhone app, its first service powered entirely by AWS. Netflix

continues to grow rapidly today as they ramp up their expansion into other markets across

the globe, and mazon is ready to grow along with it. Netflix can continue to focus on

content, personalization, customer service, user interface, and offerings across multiple

devices and platforms, and leave the worrying about data storage and streaming demands

to AWS.

1. What event convinced Netflix to switch to a cloud-based service? (350 Word)

2. What is Chaos Monkey and why is it importance for Netflix and its use of AWS? (350 Word)

** I have the answers which are available online so copying from other sources will ensure you gain Downvote and report your answer. So be careful!

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