Netflix Digitally Disrupts Itself!

In its first incarnation, Netflix simply provided a better way to rent DVDs. Going head to head with the then giant Blockbuster Video, a company that charged high late fees for DVD returns, Netflix allowed its customers to rent DVDs by mail with no late fees! Although the Netflix model didn't offer the instant gratification of taking home a DVD from a local store, it was simpler to rent from Netflix, and customers preferred the affordability Netflix offered. In this way, Netflix had seriously disrupted Blockbuster's business. The subsequent introduction of Netflix's subscription streaming service also seriously disrupted major television networks such as ABC, CBS, and NBC. Until a few years ago, viewers could only watch TV shows on their television sets. As a result, TV moguls ABC, CBS, and NBC were able to charge high advertisement rates and high subscription rates. When Netflix came on the scene, traditional TV broadcasting companies had to completely reshape how they delivered their offerings. In doing so, their business operations were significantly disrupted. They no longer had the bulk of the market, their advertisement revenues dropped substantially, and their costs have increased to provide Webcasting services such as video-on-demand and Web delivery of content. However, Netflix didn't stop at disrupting other competitorsit went on to disrupt itself! With the entry of more and more digital Webcast services such as HULU, ROKU, Sling TV, and Netflix were facing increasingly stiff competition. To survive and prosper, Netflix separated its first-run movie rental offerings from its Web streaming services and runs two business models simultaneously. In its latest incarnation, Netflix is focusing on edging out its competition with original programming. At the 2018 Emmy Awards, Netflix had more Emmy nominations than premium cable giant HBO and took home 23 prestigious awards! In creating a new market, Netflix has avoided being displaced by its competitors and is one of the rare companies that has successfully disrupted itself.

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