Netflix's DVD operation fuelling transformation
It maintains profitability of its DVD-by-mail business as it grows its streaming service
Fremont, California
IT WAS just past sunrise on an early-spring morning at Netflix's DVD operations here, where metallic arms whirred in a giant glass box and rolling carts holding millions of DVDs lined the walls. The company's iconic red envelopes buzzed through an assembly line at the other end of the warehouse.
The machine sucked a returned Netflix mailer into the system, then proceeded to slice open the envelope, identify and clean the disc inside, check that the DVD worked and reinsert it into the original sleeve. That disc was then returned to the storage carts or shipped out to another customer who had requested the title.
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