Netflix Inc.: Streaming Away from DVDs Harvard Case Solution & Analysis

This case deals with two major video rental service, Blockbuster U.S. and Netflix, and how each adapt to changing technologies and market forces. At the end of the case, Blockbuster filed for bankruptcy and Netflix saw its first decline in the number of subscribers since its founding in 1997. Netflix also faces a number of new threats, including illegal file sharing, rental kiosks and new budget video-on-demand (VOD) services. Netflix responds to these threats, saying that it would split the company in two. Netflix will focus exclusively on streaming content, while the new subsidiary will be limited to the provision of Qwikster DVD-ROM by mail. The vast majority of customers react negatively to the announcement, and the stock in Netflix plunged by more than 50 percent. "Hide
by Luis Alfonso Dau, David T. Wesley Source: Richard Ivey School of Business Foundation 10 pages. Publication Date: April 5, 2012. Prod. #: W12850-PDF-ENG

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