Monday, August 8, 2011

Netflix is Moving Some Operations to San Jose

Netflix is dividing up operations into two different divisions, one that will focus on streaming video and another that will focus on their traditional DVD and Bluray mail-based rentals. Well, it just so turns out that DVD operations are moving to San Jose in North First Street. 225 engineers are expected to make the move, along with a substantial amount of sales tax dollars. 

Netflix is a company that is expanding very quickly and desperately needs more space. Los Gatos has been a difficult partner in accommodating their growth needs, and I have a feeling that they are testing the waters in San Jose. If they continue to grow at their existing rate and things work out well in the San Jose office, perhaps they will choose to also relocate their streaming operations at some point.

For more info on the Netflix move, click here.


  1. it's pretty clear they are staying in los gatos after their recent successful fight to expand their headquarters there.

    as usual, our san jose city leadership was silent, passive on this. i'm pretty sure there is some vacant land or a damn parking lot they could have offered netflix at no cost - or at least play a part in negotiations for them to consider moving to downtown san jose.

    this city just doesn't get it and probably never will.

  2. Do you know for a fact that the city of San Jose did nothing? If so, I'm surprised...I'd almost bet they worked feverishly behind the scenes to offer some incentive(s). Getting the DVD business unit is still good. And come on, they were never seriously going to leave LG for their HQ anyways. That would be like Google leaving MV, Apple leaving Cupertino...not gonna happen IMO.

  3. I don't know that they didn't try, but if they did, why would it be feverishly behind the scenes and not right out in public, in the media?

    There's just no good vibe here and none of our elected officials do the bare minimum in the way of talking things up. They are rarely in the news and when they are it's a budget issue or some other depressing topic.

    Does the mayor even live downtown? I mean, would it be so crazy for him to live at the 88 or be seen during happy hour downtown somewhere at least once in a whil? Call me crazy.

  4. You are not crazy and your points are all good. I don't know where the mayor lives but he doesn't strike me as a downtown urban dweller. That's Jerry Brown and he's in Sacramento! I guess my point was that often these deals are done behind the scenes. e.g. Brocade. That was a chance meeting (involving the mayor) if the story as reported is true.