Netflix: David Becomes Goliath

Introduction

Questions and Exercises

  1. How does the Netflix business model work?
  2. Which firms are or have been Netflix most significant competitors? How do their financial results or performance of their efforts compare to Netflix's efforts?
  3. What recent appointment did Reed Hastings accept in addition to his job as Netflix CEO? Why is this appointment potentially important for Netflix?
  4. Why did Wal-Mart and Blockbuster managers, as well as Wall Street analysts, underestimate Netflix? What issues might you advise analysts and managers to consider so that they avoid making these sorts of mistakes in the future?