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Netflix Inc.: The Second Act - Moving into Streaming
Sayan Chatterjee; Wayne Barry; Alexander HopkinsCase IVEY-9B16M080-EEntrepreneurship, Marketing, StrategyIn late 2011, Netflix was migrating from its highly successful business model of delivering DVDs by mail to streaming movies and other media content directly to subscribers' televisions. To be profitable, Netflix decided to charge more for receiving DVDs by mail—a service that its existing customers had come to expect as a minor add-on to their original subscription arrangement. This charge led to a huge backlash: subscribers defected and Netflix...Starting at €8.20
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Netflix Inc.: Proving the Skeptics Wrong
Sayan Chatterjee; Wayne Barry; Alexander HopkinsCase IVEY-9B16M081-EEntrepreneurship, Marketing, StrategyNetflix, a subscription-based movie and television show rental service, offered content to subscribers either via DVDs delivered by mail, or through Internet-based streaming. After splitting the two services, the company lost subscribers, and its stock price plummeted. Most observers were skeptical that Netflix could maintain its profit margins, given the increased cost of acquiring streamable content. However, Netflix not only reduced its cost p...Starting at €8.20