Innovation Strategy
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Innovation Strategy
STR/581
April 6, 2015
Innovation Strategy
Since 1997, niche company Netflix has built on to its origin in DVD rentals (Netflix, 2015). The firm grew to hold a superior position in the on-demand market. With over 57 million viewing members globally, the company has developed from renting blocks of two hour movies. The Netflix service now provides over two billion hours of viewing per month. The offerings include original series, feature films, and documentaries. From Netflix beginning as a subscription based service, the firm is renting out over 100,000 DVD titles and owns a subscriber base over 10 million members strong. Reed Hasting, a former business owner, developed Netflix after a successful acquisition of his former company, Pure Software. The idea developed after the Hastings failed to return a rented DVD to a traditional video chain. Upon assessing forty dollars in late fees, Reed joined forced with co -founder Marc Randolph to create the now-popular Netflix, built around a no late-fee policy. Now offering the advantage of anytime commercial free viewing, Netflix has become a significant and growing innovator for media fans (Netflix, 2015).
Model One Technology to Another
Video rental was initially dominated by the traditional business model where customers would travel to their nearest Video store to rent movies. Customers would rent VHS videos for a limited time and if they returned the video late a late fee was charged. This traditional business model was captured by three companies, Blockbusters, Hollywood, and Movie Gallery (Hunt, 2005). The technology was changing, and movies were being put on a flat disc known as a DVD. Netflix entered the video market during this time. The decision was made to use the same business model. However, delivering the DVD's to the users home using the postal service, and at no time would late fees would be incurred. Traditional video renting became a past preference as Netflix found...
STR/581
April 6, 2015
Innovation Strategy
Since 1997, niche company Netflix has built on to its origin in DVD rentals (Netflix, 2015). The firm grew to hold a superior position in the on-demand market. With over 57 million viewing members globally, the company has developed from renting blocks of two hour movies. The Netflix service now provides over two billion hours of viewing per month. The offerings include original series, feature films, and documentaries. From Netflix beginning as a subscription based service, the firm is renting out over 100,000 DVD titles and owns a subscriber base over 10 million members strong. Reed Hasting, a former business owner, developed Netflix after a successful acquisition of his former company, Pure Software. The idea developed after the Hastings failed to return a rented DVD to a traditional video chain. Upon assessing forty dollars in late fees, Reed joined forced with co -founder Marc Randolph to create the now-popular Netflix, built around a no late-fee policy. Now offering the advantage of anytime commercial free viewing, Netflix has become a significant and growing innovator for media fans (Netflix, 2015).
Model One Technology to Another
Video rental was initially dominated by the traditional business model where customers would travel to their nearest Video store to rent movies. Customers would rent VHS videos for a limited time and if they returned the video late a late fee was charged. This traditional business model was captured by three companies, Blockbusters, Hollywood, and Movie Gallery (Hunt, 2005). The technology was changing, and movies were being put on a flat disc known as a DVD. Netflix entered the video market during this time. The decision was made to use the same business model. However, delivering the DVD's to the users home using the postal service, and at no time would late fees would be incurred. Traditional video renting became a past preference as Netflix found...