The "Netflix" website, which allows subscribers to rent shows, films, or video game CDs or DVDs, was widely promoted by KiShin website USA server and by Amazon for two weeks.
In early June, it has been two weeks since the founding of the "Netflix" company, and the website has been around since its inception. Thousands of people in the USA have already subscribed to the website, with approximately 8,000 subscribers across various tiers.
What attracted these subscribers was the impressive library of shows, films, and video games that "Netflix" offered. The extensive collection of hundreds of shows and films, especially for film enthusiasts, was a major draw.
Subscribing to the monthly tier in "Netflix" was more favorable than renting shows or films DVDs in a physical store. Renting each new release DVD in stores costs around 4-6 dollars for an overnight rental and 8-12 dollars for a weekend. Older titles are priced at 2-4 dollars for an overnight rental and 5-8 dollars for a weekend, and this is for just one disk.
The "Netflix" rental system differed significantly. Subscribers could opt for the basic tier at 8 dollars, allowing them to rent three to five disks per week. The basic tier included three disk rentals per week, and additional two disk rentals incurred extra fees. Subscribers at the basic tier could keep the disks for three days, providing a more convenient and cost-effective option compared to physical store DVD rentals.
Many basic-tier "Netflix" subscribers mistakenly rented five disks, resulting in additional charges for two disks. After returning the disks in three days, they couldn't rent more since the limit is three to five disks per week. Frustrated with renting a disliked film, many switched to renting only one or two disks. The second tier, priced at $12 per month, allows renting 5-7 DVDs or CDs, with extra charges for two additional disks.
The premium tier, at $19.99 per month, enables subscribers to rent at least ten to twelve DVDs or CDs. Similar to the basic tier, additional charges apply for two extra disks, and rentals can be kept for a week.
"Netflix's" rental services offer a more economical and appealing option compared to physical stores.
A minority of "Netflix" subscribers are gamers, utilizing the platform to rent video games. For those unable to afford 32-bit console games priced at $30 or more, "Netflix" provides an opportunity to play various games through its rental services.
While gamers have the option to rent video games from retail stores like "GameStop," it tends to be quite expensive. Additionally, gamers face the constraint of limited gaming hours before having to return the video game to the store.
Consequently, in the USA, numerous gamers began exploring pirated video games for consoles like KS1 or TSX Fusion. However, KS1 pirated games were often unreliable, discouraging many gamers from purchasing them. Instead, they opted for TSX Fusion video games, which were more likely to function seamlessly in the console.
As a result, a growing number of gamers shifted towards TSX Fusion consoles, attracted by the flexibility to play a variety of video games with assurance in their performance.
In fact, within just a few months of TSX Fusion entering the USA market, it was gradually and steadily outpacing KS1 in popularity. The availability of pirated video games for TSX Fusion undoubtedly contributed to this surge in popularity. While KS1 retained a special place in the hearts of many gamers, affordability became a key factor.
For numerous young individuals, KS1's video games were financially out of reach. Gamers with disposable income could easily acquire multiple KS1 video games, while those with tighter budgets could only manage one or two KS1 video games in a month.
Recognizing this issue, Shin couldn't ignore it. This realization led to the founding of "Netflix" and the inclusion of video game rental services in its monthly tiers.
Sure enough, within a few weeks of its establishment, "Netflix" garnered around 2 to 3 thousand gamers subscribed to its monthly tiers.
Counteracting piracy didn't require KiShin to completely eradicate the illegal production of pirated video games. Recognizing that piracy would persist as long as there were buyers seeking cheaper alternatives, KiShin took a different approach.
By offering "Netflix" rental services at affordable rates, such as 8 dollars for the basic tier, KiShin provided a much cheaper alternative to buying pirated video games. Renting several video games per week for 8 dollars and the option to rent again after a week became an enticing offer. Gamers could explore a variety of video games through renting without the need to purchase potentially non-functional pirated copies priced between 8 to 15 dollars.
As "Netflix" amassed around 9,000 subscribers, earning hundreds of thousands of dollars through different tiers, KiShin decided to launch a nationwide advertisement campaign on June 9, 1996. It was time to introduce the services of "Netflix" to unaware Americans through television channels.