For the first time, over the holidays, Netflix will pay more to stream its movies over the internet than to send discs through the mail. Once again, a company has survived and perhaps even prospered by being able to quickly change its business model. It has adapted to changing consumer habits.
Its’ old competitor, Blockbuster, didn’t catch on until it was too late.
Netflix was able to use two of the most public and most used networks, the postal service and the internet, as the basis for their distribution business. In both cases, they didn’t have to build anything except a strong marketing machine.
Excellent story by David Carr in the NY Times today.