The initial services provided by the prominent streaming platform, as covered by The New York Times, centered on DVD rentals delivered through the mail. This business model allowed consumers to select movies and television shows online and receive physical copies directly at their residences, circumventing the need to visit brick-and-mortar rental stores. For example, subscribers could create queues of desired titles on the company website, which were then shipped sequentially upon return of the previous disc.
This early business strategy was significant for several reasons. It offered a convenient alternative to traditional video rental outlets, particularly for individuals with limited access or time. Furthermore, it disrupted the existing market by providing a broader selection of titles and eliminating late fees, a common pain point for consumers. The approach also created a wealth of user data that proved invaluable in the future. This user preference information was instrumental in paving the way for its transition to digital streaming.
