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NetFlix is looking to grow its internet based DVD rental business. The long-run objective for NetFlix is growth and increase market share in a billion dollar market. The company is trying to go public with an initial public offering. NetFlix has been increasing their market share with a promotion that offers their customers the chance to use NetFlix’s service for a period of one month at no cost. It is the hope that the new customers will continue their service into a paying status. NetFlix has seen opportunity in revenue sharing with Motion Picture Association of America studies. NetFlix would like to start a division called Personal Movie Finder Service, which would allow their customers to evaluate movies. The benefit to NetFLix would be increased revenue and market share. The movie studios would gain great insight into what movies people like and want to see. In addition, NetFlix is trying to start a video-on-demand service for its internet based customers. The video-on-demand service would provide their customers the opportunity to view videos over the internet. Customers would just a select a movie and watch it in matter of seconds and anywhere there is internet.
NetFlix’s performance has been good in the sense of continued revenue growth and increased market share. Even though NetFlix has incurred net losses in their first couple years, their outlook is positive for future growth into profits. The company is planning for future growth, which shows their commitment to production. This will be crucial if they expect to go public with an IPO. The increased market share will be an effective way to get out of the net losses and into net gains. It could be foreseen that a start-up company would inc ...