Netflix Back Online25 Mar, 2008 By: Erik Gruenwedel
A day after an “unanticipated outage” rendered its Web site unusable for 11 hours, Netflix Inc.'s site was back online while employees played catch-up, shipping Monday and Tuesday's DVD rentals in one day.
Netflix announced Wednesday that it would apply a 5% credit to the accounts of those customers whose orders were delayed.
“It was a rare anomaly for the company that has pretty much run 24/7 since the beginning,” said spokesperson Steve Swasey.
He said the disruption, which ironically occurred the day Netflix's stock hit an all-time high, affected the online DVD rental pioneer's 52 national distribution centers, in addition to the Web site.
Shares were up nearly 2% at the end of trading March 26 to $37.86.
Swasey wouldn't comment on the company's stock but said Netflix continues to deliver what it said it would deliver: growing subscribers (7.5 million and counting) and movie streams.
The company will soon conclude its first quarter, which is expected to be stellar.
“The company's growing and it's a good story,” Swasey said.