You go to our Web site, NetFlix.com and choose as many movies as you want. Then we send you them right away. You get them in two to three days and the wonderful thing is you get to keep each movie as long as you want. There are no late fees and no due dates. And when you finish with a move, you put it back in a pre-paid return envelope that we give you and drop it in any mailbox. When we get it back, we send you the next one from the list that you've created."
NetFlix CEO Reed Hastings. You get unlimited rentals ... up to three at a time... for about 20 dollars a month. While the local video rental shop may be more convenient for renting on impulse, Hastings says the online rental business is winning lots of fans...
"Blockbuster's great if you live real near it and if you never get any late fees. But if you're like most people, then you get the late fees and you go to the video store and it's hard to figure out what you want to watch. And the power of the Internet is you've got all these tools to choose movies, all of these suggestions, all the rich editorial. And for people who like Internet ordering and the convenience of free home delivery, then NetFlix is a great choice for them."
Subscribers can cancel at any time. NetFlix isn't turning a profit yet... but hopes to reach that threshold by the end of this year. Bootcamp, I'm Fred Fishkin, Bloomberg Radio.