Netflix, the online movie rental service, has surpassed one million subscribers, the company reported today. Netflix says it has nearly doubled its subscriber base each year since shifting to a subscription model in 1999.
Netflix offers 13,500 rental titles on DVD. Customers pay $19.95 a month and can have up to three movies checked out a time. When they return a movie, Netflix mails their next selection. Netflix provides free shipping and assesses no late fees. Netflix reports that 97% of titles were rented by customers in January. "We are excited and proud to have reached the one millionth subscriber level in record time while still early in the consumer adoption curve," said Reed Hastings, CEO and founder.
Netflix operates 16 shipping centers and plans to open more this year. Right now, 50% of Netflix customers get next-day service. By the end of the year, Netflix expects to increase that to 70%. Netflix pioneered the concept of monthly fee, unlimited movie rentals and its model is now being copied by other online movie providers.
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