Disruption at Netflix

I mentioned Netflix in the book as an example of a company that opened up some of its data to the outside world in order to improve the way that it recommends films to its customers. Recently it made a decision that shows the power that the computer has to disrupt.  Netflix’s business has been associated with DVD rentals for some time; however, the fact that Internet speeds are increasing has meant that it has increasingly offered streaming services.  This year they decided to split the businesses.  A decision that they later reversed. I was surprised by this in that I would have thought the best way to organise the transition from being a metal disk renting company to a streaming company would be to have a common entry point with offers and branch points for dedicated DVD customers to sample and, perhaps, be hooked on streaming.  Here’s an example of disruption being handled by a succesful company that is in the eye of the storm.


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