Why study Netflix? Netflix - the long tail in action. Leveraging the data asset. How does Netflix work - DVD operations. From atoms to bits. Disruptive Innovation. Qwikster. By Adam Richardson | 7:24 AM September 20, 2011 Every now and then, the business world presents us with a lab experiment that we can observe in realtime.
Netflix’s announcement that it is splitting off its DVD-by-mail business from its streaming business is just such an experiment. The DVD business will now go by the name Qwikster, and the streaming business will stay under the Netflix brand. It is Clayton Christensen‘s innovator’s dilemma incarnate, and Netflix is very publicly trying to solve it. In his blog post about the split, Hastings says: “For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Hastings goes on to acknowledge, “It is possible we are moving too fast — it is hard to say.” About five years ago I did this somewhat tongue-in-cheek “timeline” of pivot points for a client in the TV business: Several things are worth pointing out from this lengthy document: 1. 2. 3. Next time - the current and future state of Netflix and the industry.