Since the publishing of this case, Netflix has entered the video on demand (VOD) market. What is your analysis of how Netflix has attempted to update their business model with VOD?
Netflix understands the level of competition within the DVD rental market. The company has looked to develop online movie viewing with the ability to link with a television. Additionally, the company is considering exclusively serving the VOD market, which will likely require long-term commitments from new customers. The company will also view its current customer base as the initial market for the VOD offerings. I believe this is a smart strategy as it utilizes Netflix’s strengths and provides an advantageous clarity in this emerging market.
Also CBS News “60 Minutes” did a piece on Netflix in 2006. Check it out: http://www.cbsnews.com/stories/2006/12/01/60minutes/main2222059.shtml
