Netflix Case: David becomes Goliath
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Transcript of Netflix Case: David becomes Goliath
Netflix Case:David becomes Goliath
By John Gallaugher
Case Study available at:http://gallaugher.com/chapters
&http://flatworldknowledge.com/pub/gallaugher
Topics Covered
• NetFlix– Startups vs. Established Firms– Virtual vs. Physical Storefronts– Long Tail Industries– Resources for Competitive Advantage– Value of Moving Early– Short & Long Term Vulnerabilities
• Brand
• Scale
– Distribution Centers
– Customers
– Selection
• Data / Switching Costs
Key Resources for Comp. Adv.
Distribution Centers
Economies of Scale
Subscribers:14 million
Subscribers:2.2 million
Cost to run the effort:$300 million
Cost to run the effort:$300 million
Vs.
Source: Wired
Long Tail: businesses that can profitably offer a great volume of less popular products
9
Crowdsourcing: Outsourcing a task to a large, and undefined population in the form of an open call.
“underwhelming”
• Not Enough Content
• No Way to Get Content to the Television
Windowing: content is available to a given distribution channel for a specified period of time (window).
Many Models