Netflix: From DVDs to “Streaming Entertainment”
Netflix didn’t just kill Blockbuster; they created the Streaming & SVOD category that changed how the world consumes media.
The Strategy
They shifted the consumer’s “Point of View” from “owning/renting a physical disk” to “subscribing to a library of content.” By focusing on the “missing” problem of late fees and limited shelf space, they made the old business model of physical stores look antiquated.
Strategic Insights
- Content as a Service: Moving from a transactional model to a recurring one.
- Personalization Engines: Using data to define what the category looks like for every individual user.