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GameFly – Profile

December 2, 2004

HQ: Los Angeles, CA
Founded: July 2002
Management: Co-founders Sean Spector and Jun Suh are ex-Creative Artist Agency, Ex-Disney guys. They hired CEO David Hodess who was also a Disney dude and more recently ran They have done a solid job of getting the business going and securing distribution without major funding.
Investors: Undisclosed angel funding.
Business Model: The Netflix model applied to video games – subscription-based rentals by mail. One advantage over DVDs is that gamers tend to keep games longer than Netflix subscribers tend to keep DVDs.
Competitors: RedOctane, GPlay, NumbThumb, GameznFlick, Blockbuster
Dirt: It’s hard to imagine that the company will be acquired by a bigger company like Netflix or Blockbuster. So Gamefly will have to succeed on its own. We can’t think of any reason why this won’t be as big a business as DVD rental, but so far the company has not posted any rapid growth numbers.

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