Netflix Adds Two Distribution Centers19 Dec, 2002 By: Hive News
Netflix has opened two new distribution centers in Dallas, Texas, and Stamford, Conn., the online rentailer announced today.
The centers are the most recent of 11 regional distribution centers the company has opened as part of its plan to reach 70 percent of subscribers with generally overnight delivery by the end of 2003.
"Our ability to deliver DVDs faster is having an extremely positive impact on the overall customer experience, particularly among new customers, and gives Netflix a major competitive advantage," said Netflix CEO Reed Hastings. "We are thrilled with the success of our regional expansion efforts and so are our customers."
Local distribution facilities will reinforce Netflix's leadership position in online rentals and will replicate regionally the success the company has experienced in the San Francisco Bay Area where the company's first distribution facility was opened. More than 3.5 percent of households in the Bay Area are Netflix subscribers and have experienced generally next-day service for the last four years.
"As competition heats up over the coming year, our ability to deliver the movies our customers want in a fast and efficient manner will become increasingly important," said Hastings. "We have set a high bar for the competition in terms of our value, selection and convenience. By aggressively opening more regional facilities we are pushing that bar even higher."
In addition to the Dallas and Stamford facilities, the company operates regional distribution centers in the Atlanta, Boston, Denver, Detroit, Houston, Los Angeles, Minneapolis, New York, San Jose, Seattle and Washington, D.C., metropolitan areas.