MI021/CS021Computers in Management
Sept. 15, 2006
Startups vs. Giants:
Netflix & the Video Rental Industry
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
The Long Tail
Source: Wired
Revenue sharing for DVDs
Source: Video Rental Developments & the Supply Chain: Netflix Inc., WUSTL.EDU casehttp://www.olin.wustl.edu/workingpapers/pdf/2004-03-225.pdf
