Home › Case studies › Netflix
ManagementBusiness Model PivotEntertainmentAdvanced2007
Netflix: DVD to Streaming Pivot
The challenge
In 2007, Netflix had 6.3 million DVD-by-mail subscribers and was profitable. But Reed Hastings saw that broadband internet was growing rapidly and would eventually make physical DVDs obsolete. The question was when to act.
The strategy
The strategy was to disrupt themselves before a competitor could. Netflix launched streaming in 2007 while DVDs still generated cash, essentially building a second business that would eventually cannibalize the first.
Want the full story, outcome and quiz?
Read how Netflix executed it, the results, key lessons and test yourself with a quiz. Free on CaseLearn.
Try the full case free →Key lessons (preview)
- Disrupt yourself before others do it to you.
- Use data to make creative and business decisions.
- Invest in the future while monetising the present.