Introduction Reed Hastings (co-founder) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. When Netflix went public in 2002, their subscription reached the one million mark just a year later (Netflix Management, 2011). Recently, Netflix was recognized as one of the 50 most innovative companies, ranking eighth for “becoming a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success demonstrates how Netflix embraced a business approach where the mission was to transform the problematic experience of everyday consumers into a business opportunity. Netflix's positioning in other categories is illustrated below.Number 1 Number 2 Number 3 Number 4Film Netflix Double Negative Real D DreamworksVideo YouTube Twitter Netflix FXWeb Companies Twitter Google Zynga NetflixLearning Team A will describe and evaluate Netflix's innovation strategy, specific products offered to its subscribers, and the benefits the company brings to its customers and employees. For starters, innovation goes beyond an invention. It captures the opportunity for change, growth, and market leadership that enables advancements within the industry in multiple ways (Pearce & Robinson, 2011, p. 376). Put simply on Merriam-Webster.com, innovation is “the introduction to something new; a new idea, method or device" Innovative Overview of NetflixThe outlook for Netflix has developed a trend of continued growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different groups of customers (Anthony, 2005) .Netflix's success is simply due to listening to consumer feedback about... middle of paper... a tremendous opportunity to grow in the industry and become an innovative provider Netflix has many opportunities to satisfy their customers and maintain their attention with their revolutionary business growth (Martala, 2009). Their success goes beyond their product. As stated, it is a combination of their culture of high-performance drivers and promotes the mentality of “ freedom and responsibility” (Elliott, 2010). Thanks to its innovation and gradual entry into the market, Netflix has the competitive advantage to add layers of products for growth in the years to come. Currently, Netflix has the competitive advantage of raising prices and maintaining its current customer base. Even more beneficial is the opportunity to attract additional subscribers with their new features. To put an end to this, the combination of products, price, culture and strategic plan makes Netflix innovative.