Spurred by the explosive growth of the DVD market and the widespread acceptance of e-commerce among consumers, NetFlix.com enters a new phase of growth as the leading pioneer of e-rentals. The company has just received a $30 million injection by renowned luxury product leader, Group Arnault, which will allow Netflix.com to expand on their promotional activities. As a result of the arrangement, Netflix.com will also add new high-level executives to the company to compliment the current, established executive team.
With the installed base of DVD players expected to reach beyond 3.3 million by the end of 1999, DVD continues to reign as the fastest selling home entertainment platform in history. As such, NetFlix.com is continuing to solidify its strategic relationships with leading DVD hardware and home theater equipment manufactures including Sony, Toshiba, RCA/Thomson Consumer Electronics, Pioneer, Panasonic and others. NetFlix.com’s aggressive marketing tactics have proven to be tremendously successful — NetFlix.com in-box coupons and promotional offers reach virtually all DVD hardware consumers.
One such promotion will start immediately and includes an offer for free DVD rentals with DVD player and Home Theater product purchases from notable consumer electronics brands Panasonic, Philips, Sharp, JVC, Kenwood, Mitsubishi, Marantz, Sony, Toshiba, RCA/Thomson Consumer Electronics and Pioneer. With this promotion, Netflix.com will be represented industry-wide in all key DVD player boxes shipped this year.
Both current and previous purchasers (prior to promotion start date) of any above-listed DVD player brand are eligible to obtain free DVD rentals from NetFlix.com when they place their first order with the online rental
store. By using the code supplied on the box insert and point-of-sale material, customers simply log onto the store’s website, redeem their coupons, and choose from NetFlix.com’s unsurpassed inventory of DVD titles.