Netflix: official logo

Adding to fellow classmate Wesley Wen’s blog post on Netflix and their success in recent years, I would like to go further in depth into HOW exactly Netflix made their way to the top of the movie/video industry. During the class on innovation we were asked to brainstorm companies that were disruptive innovators and the first company that came to my mind was indeed, Netflix. While other companies such as Blockbuster and Video Express were trying to offer their customers a better product at a higher price, such as the move from VCR’s to DVD’s to Blue Ray discs, Netflix came in to the industry as a disruptive innovator and targeted a whole new market as well as the already current market. Netflix discovered that there was a customer segment that was unable to afford the pricey video rentals from Blockbuster and other chains and created their product to be much cheaper, simpler, and easier to access than that of their competitors.

I also noticed that Wesley talked about how streaming online for free was an option. Unlike Wesley, I disagree that Netflix has a big advantage over online free streaming. As technology gets better, it is getting easier and easier to find movies and TV shows available for free as online streaming. I believe that Netflix will soon need to make a strategic move before online streaming websites take the company out as they disrupt the industry just like Netflix once did.

Sources:

Wesley Wen’s blog : https://blogs.ubc.ca/wesleywen/2014/10/12/netflix-takeover/