Netflix Opens Two New Distrib Centers12 Feb, 2003 By: Hive News
Online DVD rental service Netflix has opened two shipping centers to serve the greater Philadelphia, Penn., and Newark, N.J., areas, the company announced today.
Netflix plans to open one or two facilities each month this year as part of its strategy to provide one-day movie delivery to members. By year-end 2003, Netflix expects to be able to reach more than 70 percent of its subscribers with next-day service.
"Netflix shipping centers are the engines that drive one-day delivery for our members," said CEO Reed Hastings. "Our customers love seeing the Netflix envelope in their mailbox and seeing it the day after it's been shipped makes them even happier."
The shipping centers strive to replicate regionally the company's success and experience in the San Francisco Bay Area.
Netflix opened its first facility five years ago in the Bay Area, and today 3.8 percent of all households in the Bay Area are Netflix subscribers. The region has received “generally next-day service for four years.
The two new facilities bring” to 15 the total number of regional centers the company has opened in recent months. In addition to Philadelphia and Newark, Netflix runs shipping centers in Atlanta, Boston, Dallas, Denver, Detroit, Houston, Los Angeles, Minneapolis, New York, San Jose, Stamford, Seattle, and Washington, D.C., metropolitan areas.