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

This case analyzes two of the leading video rental services in America, Blockbuster and Netflix, and each adapted to changing market and technology forces. At the end of the case, bankruptcy has been declared by Blockbuster and Netflix has found its first decline in subscribers since its founding in 1997.

Netflix also faces several new dangers, including illegal file sharing, rental kiosks and new low cost video on demand (VOD) services. Netflix reacts to these threats by declaring that it will divide the company in two. Netflix will focus exclusively on streaming content, while a brand new subsidiary company called Qwikster is going to be limited to supplying DVDs by mail. Customers irresistibly respond negatively to the announcement, and Netflix's stock price dives by more than 50 per cent.

PUBLICATION DATE: April 05, 2012 PRODUCT #: W12850-HCB-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION

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Netflix Inc.: Streaming Away from DVDs

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