Topic > Netflix Case Analysis - 1535

Munarriza said that "Netflix may have seen demand for discs decline... but its DVD-by-mail business was still good for a contribution profit of 77.9 million of dollars in its latest quarter." This means that even if they no longer give out DVD rentals like they used to, there is no need to eliminate the feature because it continues to generate profits and help the company in its growth. On the other hand, there are still some families who don't have the fastest internet services yet. Then there are some who prefer to simply pop in a disc and watch a movie on their TV, rather than wait for the movie to buffer in their laptop. After the decline in DVD shipments, Netflix has decided to make some cuts at some of its warehouses. Munarriza said in the Daily Finance that "reducing the number of distribution centers from a maximum of 50 to 33 has helped reduce costs," with fewer people renting DVDs it is no longer necessary to have as many shipping warehouses as they once did . years