Case Solution for Netflix Inc.: Streaming Away from DVDs

Complete Case details are given below :
Case Name :      Netflix Inc.: Streaming Away from DVDs
Authors :           Luis Alfonso Dau, David T.A. Wesley
Source :             Ivey Publishing
Case ID :            W12850
Discipline :        General Management
Case Length :    10 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
This case examines two of the leading video rental services in the United States, Blockbuster and Netflix, and how each adapted to changing technology and market forces. At the end of the case, Blockbuster has declared bankruptcy and Netflix has seen its first decline in subscribers since its founding in 1997. Netflix also faces a number of new threats, including illegal file sharing, rental kiosks and new low cost video-on-demand (VOD) services. Netflix responds to these threats by announcing that it will split the company in two. Netflix will focus exclusively on streaming content, while a new subsidiary called Qwikster will be restricted to providing DVDs by mail. Customers overwhelmingly react negatively to the announcement, and Netflix’s stock price plunges by more than 50 per cent.
 
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