Netflix: David Becomes Goliath
From Atoms to Bits: Opportunity or Threat?
Questions and Exercises
- What do you believe are the most significant
long-term threats to Netflix? How is Netflix trying to address these
threats? What obstacles does the firm face in dealing with these
threats?
- Who are the rivals to Netflix's "Watch Now" effort?
Do any of these firms have advantages that Netflix lacks? What are these
advantages?
- Why would a manufacturer of DVD players be motivated to offer the Netflix "Watch Now" feature in its products?
- Describe various revenue models available as video
content shifts from atoms to bits. What are the advantages and
disadvantages to each - for consumers, for studios, for middlemen like
television networks and Netflix?
- Wal-Mart backed out of the DVD-by-mail industry. Why
does the firm continue to have so much influence with the major film
studios? What strategic asset is Wal-Mart leveraging?
- Investigate the firm Red Box. Do you think they are a legitimate threat to Netflix? Why or why not?