marketing team discovered an undeniable correlation between one-day delivery in the San Francisco Bay Area and the rate of new customers signing up. One-day delivery seemed like magic, and people started telling their friends about it. To test the one-day theory in a new market, they created a “hub” in Sacramento, in 2000 by driving the mailers there and back each day from the San Jose distribution center, and the sign-up rate bounced up dramatically. The discovery fundamentally changed Netflix’s distribution and marketing plans. The costs of attracting new customers came down as people in the
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