Netflix’s model as a rent-at-home DVD service is the prime example of a disruptive innovator. Its DVD-by-mail model devastated the video rental business and pioneered the push of an industry juggernaut, Blockbuster, into bankruptcy. Therefore I found myself agreeing to a lot of the points made in Stella Cho’s entry regarding Netflix as a disruptive innovator.

By paying a monthly fee of $7.99, the consumer has access to a catalog that consists of thousands of television shows and movies. Netflix is a disruptive innovator to video rental businesses and a major threat to the cable television industry. Alongside the ever-growing YouTube, Netflix has effectively disrupted the cable television industry. As what Stella said in her post, “Owning a television does not automatically correspond with having cable subscription.”

However, as successful as Netflix has been, the growing online video streaming industry threatens to disrupt Netflix’s business model. Netflix itself is a rent-at-home DVD, DVD-by-mail streaming service whereas online media streaming allows its consumers to enjoy cable television through streaming. As an avid sports fan myself, I find myself contemplating paying the subscription fees for a streaming sports network like NBA Gametime rather than succumbing to the popularity of Netflix. Other companies such as ABC and CBS have already provided its consumers with an online streaming service. Netflix is aware of this therefore they are attempting to establish a separate streaming business of their own. Whether or not they’ll succeed, it will be interesting to see how it pans out as it will be ironic how Netflix, as a disruptive innovator, could possibly disrupt itself with its new separate business model.

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