Online DVD rental service Netflix Inc. has opened two new shipping centers in Philadelphia and Newark. The openings are part of NetFlix’s aggressive nationwide expansion plans which will involve opening one or two new facilities every month this year. By the end of the year, NetFlix plans to be able serve 70% of its subscriber base with next-day service. Today, it is serving half of its subscribers with next-day delivery.
"Netflix shipping centers are the engines that drive one-day delivery for our members," said Reed Hastings, Netflix CEO and co-founder.
The two new facilities bring the number of NetFlix’s regional centers to 15. It operates shipping centers in Atlanta, Boston, Dallas, Denver, Detroit, Houston, Los Angeles, Minneapolis, New York, San Jose, Stamford, Seattle and Washington, DC.
In 5 years, NetFlix has signed 3.8% of households in the San Francisco area, its home base, to its service. NetFlix has 850,000 subscribers. For $19.95 a month, they can rent as many DVDs as they want, with three movies out at a time, and keep them for as long as they like.
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