Netflix, Inc. operates as an Internet television network. The company’s network has approximately 57 million streaming members in approximately 50 countries enjoying approximately 2 billion hours of TV shows and movies per month, including original series, documentaries, and feature films. The company has expanded its streaming content offering to include original programming, including various Emmy, Golden Globe, and Academy Award nominated original series and documentaries. Segments The company has three segments: Domestic Streaming, International Streaming, and Domestic DVD. The Domestic and International Streaming segments derive revenues from monthly membership fees for services consisting solely of streaming content. The Domestic DVD segment derives revenues from monthly membership fees for services consisting solely of DVD-by-mail. Strategy The company’s core strategy is to improve its streaming membership business worldwide. Seasonality The company’s domestic member growth is greatest in its fourth and first quarters (October through March), slowing in its second quarter (April through June), and then accelerating in its third quarter (July through September). Additionally, the variable expenses associated with shipments of DVDs are highest in the first quarter (year ending December 2014) due to the seasonal nature of DVD usage. History Netflix, Inc. was founded in 1997. The company was incorporated in Delaware in 1997 and began its operations in 1998.
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