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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