Netflix Case: David becomes Goliath

1. Netflix Case:David becomes Goliath By John Gallaugher Case Study available at: http://gallaugher.com/chapters & http://flatworldknowledge.com/pub/gallaugher

2. 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

5. Key Resources for Comp. Adv. • Brand • Scale • Distribution Centers • Customers • Selection • Data / Switching Costs

6. Distribution Centers

7. Economies of Scale Subscribers: 14 million Subscribers: 2.2 million Vs. Cost to run the effort: $300 million Cost to run the effort: $300 million

8. Long Tail: businesses that can profitably offer a great volume of less popular products Source: Wired

10. Crowdsourcing: Outsourcing a task to a large, and undefined population in the form of an open call.

11. “underwhelming” • Not Enough Content • No Way to Get Content to the Television

12. Windowing: content is available to a given distribution channel for a specified period of time (window).

13. Many Models