Originally published in Hoffman, A. N. (2013). Netflix, Inc.: Rebranding and price increase debacle. Rotterdam, Netherlands: Rotterdam School of Management, Erasmus University.

Includes bibliographical references and index.

In 2011 Netflix was the world's largest online movie rental service. Its subscribers paid to have DVDs delivered to their homes through the U.S. mail, or to access and watch unlimited TV shows and movies streamed over the Internet to their TVs, mobile devices, or computers. The company was founded by Marc Randolph and Reed Hastings in August, 1997 in Scotts Valley, California, after they had left Pure Software. Hastings was inspired to start Netflix after being charged {dollar}40 for an overdue video. Initially, Netflix provided movies at {dollar}6 per rental, but moved to a monthly subscription rate in 1999, dropping the single-rental model soon after. From then on, the company built its reputation on the business model of flat fee unlimited rentals per month without any late fees, or shipping and handling fees.

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