Reed Hastings founded Netflix with a vision of a home video service, satisfy the customers a better job than traditional retail rental model would do. But as it challenges they encouraged themselves underwent several major strategy shifts, ultimately, the development of a business model and an operational strategy that retailers were very disturbing video rental chains. The combination of a large national inventory, a recommendation that drove viewers across the wide catalog, and a large c … Read more »

Reed Hastings founded Netflix with a vision of a home video service, satisfy the customers a better job than traditional retail rental model would do. But as it challenges they encouraged themselves underwent several major strategy shifts, ultimately, the development of a business model and an operational strategy that retailers were very disturbing video rental chains. The combination of a large national inventory, a recommendation that drove viewers across the wide catalog, and a large client 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 company has been slow to respond at first, but ultimately rolled out a hybrid retail / online response in the form of Blockbuster Online. Aggressive pricing pulled subscribers, but at a cost to IT and Netflix. But a new challenge was on the horizon: video-on-demand. How should Netflix react?
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from
Willy Shih,
Stephen P. Kaufman,
David Spinola
Source: HBS Premier Case Collection
15 pages.
Release Date: 31, May 2007. Prod #: 607138-PDF-ENG
Netflix HBR case solution