Delivery
Netflix’s delivery time for DVD titles is about one business day. Over 97% of Netflix’s customers receive their DVDs within one business day, compared to only 90% of Blockbuster’s customers receiving their DVDs in one business day (Blockbuster By Mail: 2010). With its streaming video option, consumers can view titles instantly on their computers or on streamed onto their televisions through a “Netflix ready device”, such as a Xbox or a PS3 system. Being the first in the industry to offer streaming video, Netflix has been able to achieve its strategic position. Consumers appreciate the ability to save costs in regard to time and transportation. The problem with traditional video rental was the fact that it took time out of busy consumers’ lives to go to the store, browse through the titles, and rent them. Netflix’s service allows these consumers to save time, which is possibly what people value the most.