THE DIGITAL REVOLUTION: What Net ix Teaches Us About Digitization and Automation
THE NETFLIX SUCCESS STORY
Before 2007, Net ix – now a global provider of streaming movies and TV series – mailed DVDs to its customers. Net ix made their DVDs available through an industry-startling monthly subscription fee, and processed every single DVD manually.
At the height of the DVD-by-Mail trend, Net ix received roughly 190,000 returns per day. Employees opened and examined every DVD they received, one by one. They were also expected to stuff DVDs into envelopes at a rate of 1,000 per hour, with mandatory exercise breaks to ward off carpal tunnel syndrome.
In February 2007, Net ix manually processed and delivered its 1 billionth DVD.
As a company, Net ix struggled with growth and a plateauing stock price. But new technology allowed them to scale the business in a big way – by going digital. They released a new online streaming service which
became an instant success. Their streaming success led to funding their creative vision for original entertainment series. And now Net ix is an even bigger threat to television, cable TV and movies. Net ix serves more than 81 million subscribers worldwide, and it’s not slowing down. All because Net ix led where others did not - it embraced the digital revolution.
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