Netflix Inc.: Streaming Away from DVDs Case Solution

This case study examines two major video rental service in the United States, Blockbuster and Netflix, and how each adapted to technological changes and market forces. At the end of the case, Blockbuster declared bankruptcy and Netflix had 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 services at a low cost of video on demand (VOD). Netflix responds to these threats by announcing it will divide the company into two. Will focus exclusively on Netflix streaming content, while a new subsidiary called Qwikster will be limited to providing DVD by mail. Customers react negatively to the announcement of a massive scale, and the price of Netflix shares fell more than 50 percent.
Luis Alfonso Dau,
David T. A. Wesley
Source: Ivey Publishing
10 pages.
Release date: April 5, 2012. Prod #: W12850-PDF-ENG
Netflix Inc.: Cash Flow Solution DVD

Netflix Inc.: Streaming Away from DVDs Case Solution
Share This