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Luis B

Page history last edited by uismiguel@... 9 years, 4 months ago


Research Project: Netflix

Luis M. Bejines










The topic chosen for my Research Project is Netflix, which is a company of video rentals like Blockbuster, Red Box or Amazon. This project will introduce some history of Netflix, and how Netflix plays with people's data to reach them. It will also describe the adaptations that some companies like Sony, Apple, Xbox and a few others have made in order to fit and make some business. Finally, it will show some negative and positive things about the company, and the issues that have raised within society.




What is Netflix?



 According to Wikipedia (2011), Netflix is a " subscription-based movie and show rental service that provides movies through Internet by  streaming them or via mail. This service "offers Internet video streaming of selected titles to computers running Windows or Mac OS or X and to compatible devises." The responses given from an interview that I conducted were quite similar to this definition; some of the participants concurred that "Netflix is a service that provides to you with online videos and DVDs. It is like a place where you can go and rent your DVDs, and they usually have great movies."  






How did Netflix start?


There a few speculations about  how Netflix  was started, but there is only a real one. The CEO Reed Hastings found the Netflix Company in 1997 because he was charged late fees from a movie that he had rented. He believe that if he could find a way to avoid these issues people would not have any problems with renting movies at all. By paying only twenty bucks, customers can get as many as three movies (Mason, 2002).This is exactly what he has been doing consecutively for more than ten years already. This was the beginning of this now big empire of movie-rental company, and this reality is like a virus; it is disseminated all over the United States and soon to Canada. 






The Soul of Netflix



It is easy to get the movies mailed, but it seems to be harder to imgine how difficult people have to work in order to send these DVDs  to people's houses. However, inside the company, the work is done differently. Usually a worker must scan at least six hundred and fifty discs per hour and a maximum of eight hundred discs. Knowing now that the company has more than a hundred thousand titles, there must be a lot of work to be done (Mason, 2002). People have to have the skills and the agility to do this kind of job because otherwise they can get in trouble. According to Mason (2002),  people have to rotate different positions to be more efficient and fruitful.  After all, this company is working efficiently with its customers, and like every other business, customers have to be satisfied. 




The Good and Bad About Netflix


How to know what people want is one of the main questions that are asked, and Netflix has asked itself the same question. It is unimaginable what people want and what they expect, especially when talking about movies. however, thanks to technology the company has facilitated its work by using new methods.  Davenport and Harris (2009) explain that Netflix is using a method called "Collaborative Filtering, which is a software that produces movie recommendations by correlating a data set of more than a billion movie ratings from its customers " (p. 25).  Thanks to this system, the company has provided to its customers a better service and given to them more movies selections.  This same information is seen all over the web. For instance, Facebook has this strategy to attract new people to certain products. The portal tell people that one of their friends liked certain things, and possibly, this pattern will most likely follow by them. This is exactly what this new system does, and therefore, it will send information about movies that your friends have watched already (Davenport and Harris, 2009).



However, knowing too much about customers could be harmful because when some people may not share the same point of view than the company does.  This extra information may seem to be harmless, but when things go wrong, there is nothing but facing the reality. This is exactly what Netflix had to deal with just because customers' privacy was violated.  According to Singel (2009), a lesbian mother sued Netflix because she said that her privacy was deprived by the company. This was due to the fact that the company disseminated personal information by sending specific movies to one of the subscribers, BrokeBack Mountain.This movie was the determinant variant to sue Netflix. This databases is so determinant that "the  member's movie data exposes a Netflix's members  personal interest and/ or struggles with various high personal issues, including sexuality, mental illness, recovery from alcoholism and victimization from incest, physical abuse, domestic violence, adultery and rape" (p.1). Now, it is clear that when people give information about themselves, technology will be in charge of sending them what they need and want to see. 





With new technology, companies have been modifying their use and their capabilities to negotiate their products. Big corporations have been working in conjunction with others in order to make some profits.  For instance, Weber (2010) explains that one example is Apple products, which have helped Netflix accomplish its purpose: advertise. Although people who have apple products can get this application for free or cheaper, they cannot see all the movies they want. This is one of the advantages about collaborating with other companies because all parties are benefited by the use of their products. In the next video, there will be shown how to stream movies from Netflix through Apple TV, and we will see the amalgamation of these two products processed. 









Another important step taken by Netflix is working with other companies, and one of these other companies is XBox 360. According to Mastrapa (2009), Microsoft has implemented and extended its services by signing up a contract with Netflix which means that now both of the companies are benefiting from each other.  As it is seen, Netflix is expanding its horizons by working with other companies, and customers seem to like that idea. In the interview that i did, the majority of people that i asked about the advantages of Netflix, responded to me that "it was nice that you can stream movies from Netflix through your XBox by pushing just a button." 

This video shows how Netflix works with XBox 360.






Moreover, there are other companies that have done the same thing, and as a matter of fact, Nintendo Wii has also adhered to the Netflix-mania. This phenomenon, Chan (2010) explains, has been very important because not only Play Station 3, XBox 360, Apple, but Nintendo Wii has joined "Netflix's video-streaming service." This is how important and influential Netflix has been for all these companies. This is a win/win situation for everybody because users and providers get to achieve what they want: entertainment. As a matter of fact, Microsoft, Nintendo, and Sony have open online stores to get compatible products to enjoy Netflix services (Chan, 2010). 








Furthermore, not only video-game companies have been adapting to new changes, but important filmmakers too. New technology has been transforming  media in all its facets.  Netflix  and Video On Demand (VOD) or streaming  movies have made everything possible for companies like Magnolia pictures, IFC films, HBO, and a myriad of  other companies because these companies will stop releasing DVDs. If they do so, they can make more profits by just streaming movies. The extra money that these companies will spend in making the DVDs  can be saved now (Hilderbrand, 2010).  The change is already here, and it is eminent. Eventually, as Hilderbrand states, "streaming rather than actual DVD releases it is probably the future of home video" (p.28).





Like any other product or service, there are always good and bad things about it.  Netflix is not perfect at all, and it has its flaws. This is something that Corliss (2009) noted since he has been using Netflix.  He says that there are times that he had to wait even months in order to get the next movie that he wants, and that would not happen if he goes to Blockbuster. According to HackingNetflix.com (2011), there have been issues with streaming videos, especially from 7:00 pm to 11:00 pm.  Another issue with Netflix is that when people stream movies, the sound is not unclear or mute (HackingNetflix.com, 2011).  There would be always pros and cons about any product, and people have to get used to to those kinds of issues. Since people do have to opportunity to try Netflix for a month, they can be assured that the service they are using works perfectly.


As technology keeps on improving and human beings make their lives more dependable to technology, studies have been conducted to see how our lives would change. A study done by Anderson and Rainie (2010) shows in a way the concept of Neflix, and the use of the internet. They say that online participation can create a better society. This is what is happening right now, we have connected in one way or another with the world by using  Apple products,Sony products, businesses, government, and some many other companies. Since we are  navigating in the internet for the most part, i believe that  the study done will accomplish its goal, which is that by 2020 most people will have an active participation online. This means that we will be creating an online participative society. This is how communication is, so is the internet. We live in the "Internet Galaxy," however,  we are connected through Netflix and the internet to go anywhere around the city, around the state, around the country, and even around the world.  







* Chen, B.X.(2010). Nintendo wii gains netflix. Wired.com.

  Retrieved from http://www.wired.com/gadgetlab/2010/01/nintendo-wii-gains-netflix-streaming/




* Corliss, R. (2009). Why netflix stinks: a critic's review. Time.com. Retrived      from http://www.time.com/time/magazine/article/0,9171,1913745,00.html




*Davenport, T. H., & Harris, J. G. (2009). What people want (and how to predict it). MIT Sloan Management Review, 50(2), 23-31.




Hilderbrand, L. (2010). The art of distribution: [V]video on demand. Film Quarterly, 64(2), 24-28.




* Mastrapa, G.(2009). Netflix streaming exclusive to xbox 360, for now. Wired.com.

  Retrived from http://www.wired.com/gamelife/2009/08/netflix-exclusive-to-xbox-360/




Mason, S. (2002). Movies on demand. Industrial Management, 44(5), 24.




Singel, R. (2009). Netflix spilled your brokeback mountain secret, lawsuit claim. Wired.com.

   Retrived from http://www.wired.com/threatlevel/2009/12/netflix-privacy-lawsuit/




Weber, R. M. (2010). Game Changer. Journal of financial service professionals, 64(4), 39-41.



Pew Study



* Arderson, J. & Rainie L. (2010, March 31). Impact of the internet on the institutions in the future. Pew Research Center’s Internet & American Project Life. Retrieved from







* Hacking neflix. (2011). Netflix news and info. Retrieved from http://www.hackingnetflix.com/


* Wikipedia Foundation. Inc, Initials. (2011, April 27).Netflix. Retrieved from http://en.wikipedia.org/wiki/Netflix


* youtube.com, (2009). Netflix [Web]. Available from http://www.youtube.com/user/NetflixNowPlaying








Comments (30)

jt_thizzle@... said

at 8:44 am on Apr 21, 2011

Luis good job, very detailed orientated, good information and credible. I was starting to think no one was going to post there wikis but everyone did. Keep up the good work, and I'm looking forward to seeing any videos you have on your topic, and your final wiki.

Juleane said

at 9:36 am on Apr 21, 2011

NETFLIX RULES!!!! Sorry, but it's so true. Really enjoyed what you have here so far! It is so fascinating to see how something so "familiar" as Netflix can have so many different applications and ties: the commercial application of the internet I think is a huge point in your presentation and sorry cable you're history....so true! There's so much you can tackle here.

Jenna Saenz said

at 5:35 pm on Apr 26, 2011

Luis I like your topic. I am super new to netflix, all my friends have it and I have no idea what it even was, well I know you can watch movies and stuff on it but other than that, Im lost about it. So, with that said, stoked to see your presentation.

Jay Barton said

at 10:31 am on Apr 27, 2011

Looks great Luis! I recently signed up and have instantly become a fan of Netflix. It has turned my PS3 into my families' entertainment mecca for sure. All the movies you want for $8 a month...heck ya! I like how you listed some of the problems associated with this service. Although I haven't encountered any of them myself yet, I now know what to look out for. Well put together so far, can't wait to see the finished product.

gre_89@hotmail.it said

at 11:56 am on Apr 27, 2011

Luis, yours is a really good topic! Very interesting to know that Netflix uses a method called Collaborative Filtering. I watch Netflix almost every night, and I think it is a very good service. I have always wondered how they know what movies to recommend.

ericadeguzman@yahoo.com said

at 6:11 pm on Apr 27, 2011

Hey Luis! It's great to see how much you have done on your wiki already. Looks great! What I found most interesting on your page was the section on the soul of netflix... being a user of netflix myself, it was cool to see the behind the scenes of the company. :)

jt_thizzle@... said

at 10:22 pm on Apr 27, 2011

Luis I am using your page and the example as a guide for my page! yours looks great! just check it over for grammar errors and such! but other than that good job! and leave me any comments for improvement as well plz! thnks

jt_thizzle@... said

at 11:54 pm on May 16, 2011

Luis good job on the presentation. Before your creation of the wiki page, I never really thought about trying out Netflix. I never knew they had so much to offer as far as entertainment. They have changes so much over the past few year, So many more capabilities. I tried Netflix in the past, I ended up canceling after a month because I found all their movies outdated or non interesting too me. I think your wiki page was very informative, I am glad I got the opportunity to hear your presentation. Recently, I just purchased another Netflix account, Thanks Luis!

Daniel Preston said

at 12:59 pm on Apr 28, 2011

good job Luis! I think you might have been one of the first people to finish

victorngo85@... said

at 2:04 pm on Apr 28, 2011

excellent job luis. I really liked your wiki page

kyleportal@... said

at 3:55 pm on Apr 28, 2011

Great topic. I love netflix. Not only is netflix taking over rental companies but it is taking over me.

Aubrey Lee said

at 1:18 am on Apr 29, 2011

Kyle, you are ridiculous haha

Justine Cranford said

at 10:40 pm on Apr 28, 2011

Great topic Luis. I don't really know too much about Netflix for I'm exited to learn more in class. Very nice job.

Justine Cranford said

at 11:17 am on May 12, 2011

You did a very nice job on your presentation. I really am thinking of getting a netflix account but not sure if I want to pay. But I appreciate the hard work and effort to looking into this topic. Great job. :)

Bobby Menbari said

at 11:05 pm on Apr 28, 2011

Looks good luis. Your wiki makes mine look like a miniature version.

Serena Sharma said

at 11:13 pm on Apr 28, 2011

I think you found really good info! Good Job!

Nicole Givens said

at 11:39 pm on Apr 28, 2011

I never knew that much about Netflix until reading this. This is a great topic. You have a lot of great information and pictures to go along with it.

Adrian Aujero said

at 12:01 am on Apr 29, 2011

i found netflix on video game consoles to the most interesting.

dbooth said

at 12:13 am on Apr 29, 2011

I just recently became obsessed with Netflix and all their documentaries. I just got a DVD player that has a Netflix application- so I can now stream it live from my DVD player. Reading your page was really neat because I was able to tap into a different side of this company.

Aubrey Lee said

at 1:20 am on Apr 29, 2011

Hey I did my page on Hulu! very similar :) I like what you did and I love Netflix but the only reason I use it is because my mom has an account haha. Looks good Luis!

reilingss2b7@... said

at 6:57 pm on May 2, 2011

netflix is a crazy good at marketing! its everywhere! good job!

Lena Zubaid said

at 9:53 pm on May 2, 2011

Luis, I think you did a good job of putting this project together. Netflix is a good topic, because it is very relevant. Nice job with the subheadings and the organization. I liked how you addressed many sides of the topic. Your information looks like you did a very good job of researching this topic. I also liked how you included specific examples of people’s encounters with Netflix. I think that you could have spent a little more time looking at the format just for little changes, nothing major, but other than that I think you did a very good job.

dbooth said

at 11:53 am on May 3, 2011

Luis, good job of organizing and presenting your project. Streaming video and online videos are the new thing. I remember 10-15 years ago saying wow it's crazy blockbuster is destroying the local movie rental business. Then ten years after that saying "wow Netflix and Redbox have destroyed Blockbuster" Makes me wonder what will- if at all, will be the next thing to destroy Netflix. I do the instant stream, and DVD because the DVD selection is wider and sometimes its easier to focus on the DVD player rather than the screen which has distractions like facebook, and what not.

ericadeguzman@yahoo.com said

at 6:39 pm on May 3, 2011


Luis, good job on your presentation today. Your wiki page is extremely organized. I think the most interesting thing that I’ve learned from your Wiki is how Netflix has teamed up with different companies like Microsoft, Nintendo, and Sony to spread… definitely a smart investment on both ends! I know I go on my brothers Xbox 360 all the time to watch Netflix videos.

Serena Sharma said

at 1:43 pm on May 9, 2011

Good job and the wiki as well as the presentation. I think you hit all the basic parts of Netflix and chose really good areas to talk about. I wasn’t really too interested in Netflix before because I really did not think the deals were legit but after seeing that so many people are subscribers and are satisfied I think I might give it a chance. There is limitless amount of tv shows and movies as well as their other collaborations with other companies it seems like Netflix is going to be a giant hurdle for other movie rental competitors.

Bobby Menbari said

at 4:48 pm on May 9, 2011


Good job luis. You summed up netflix fairly well but I am a bit confused as to how this topic ties into communication. It would have been interesting to address how the movie rental store dynamic no longer exists...since these purchases are occuring online. There are a wide array of other interactions that you could have discussed as well. All in all good job though.

Jay Barton said

at 9:50 am on May 11, 2011

*In addition to my comments above*
You did nice job on your presentation and this assignment as a whole. I am experiencing some problems with Netflix now, nothing major. I think it has more to do with PSN being down for so long than anything Netflix can control. But you did a great job organizing and presenting a very cool topic.
I applaud your ability to break through the language barrier so well you fit right into our Californian classroom and added to the richness of it with your energy and comments all semester long. Have a great summer, Luis.

gre_89@hotmail.it said

at 11:30 pm on May 11, 2011

Luis, as I wrote in my previous comment, I think your topic is a great! I think it is really interesting to know that Netflix uses a method called Collaborative Filtering. It's amazing that through technology, Netflix can figure out which movies people want to watch. The Collaborative Filtering method is not an easy concept. But if I understood well, it produces movies recommended by correlating a set of data on more than one billion movie ratings from its customers. It is a really interesting, and I did not know that Facebook would use this strategy to attract new people. Although, there is always another side of the coin. Knowing as much information can be dangerous. In fact, as you wrote Netflix has addressed issues relating to privacy. However, if we give some of our information technology can send us what we want to see.

sekashiwa@gmail.com said

at 12:18 am on May 12, 2011

I was very much interested in this wiki since I've been considering signing up for Netflix. It was great finding out how it all started; I didn't realize the company was so old. I kind of just thought it was a recent thing. I also didn't realize how many devices can play netflix since I have a wii. I didn't get a chance to ask during your presentation, but do you think DVDs are going to become obsolete because of netflix? I personally have a huge collection of DVDs because it seemed so convenient to keep movies that are older or not as popular, but if Netflix really has such a wide library it would free up a lot of room. I also liked your videos because they were very informative and made things easy to understand.

Juleane said

at 10:26 pm on May 12, 2011

Good topic and good page!
I have to admit that if I could afford it netflix would probably be the company that would get most of my money, but thankfully I have none to speak of. It's different hearing about the company from the ground up and not solely as a customer so I appreciate the netflix wikis for that! I think it's a really great company and it amazes me how something that's so obvious, that no one thought of before and if they did somehow didn't think it would be profitable could be such a thriving and lucrative business!

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