Netflix in 2011
Synopsis
Reed Hastings founded Netflix to provide a home movie service that would do a better job satisfying customers than the traditional retail rental model. But as it encountered challenges it underwent several major strategy shifts, ultimately developing a business model and an operational strategy that were highly disruptive to retail video rental chains. The combination of a large national inventory, a recommendation system that drove viewership across a broad catalog, and a large customer base made Netflix a force to be reckoned with, especially as a distribution channel for lower-profile and independent films. Blockbuster, the nation's largest retail video rental firm, was initially slow to respond, but ultimately rolled out a hybrid retail/online response in the form of Blockbuster Online. Aggressive pricing pulled in subscribers, but at a price to both it and Netflix. But a new challenge was on the horizon - the rapid growth of the company's online streaming service, which had a very different business model. Hastings' efforts to separate the activity into two separate companies met with strong pushback from consumers and the press. What was the best path forward?
- பதிப்புரிமை:
- 2014 HBS
Book Details
- Book Quality:
- ISBN-13:
- Publisher:
- Harvard Business Publishing
- Date of Addition:
- 2016-08-03T03:58:42Z
- மொழி:
- English
- Categories:
- Usage Restrictions:
- This is a copyrighted book.