MIS 301 Chapter Notes - Chapter 4: Reed Hastings, Netflix, Substitute Good

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 301
• Professor: Joshua Rock

Document Summary

Netflix in two acts: the making of an e-commerce giant and the uncertain future of atoms. Market shifts w/ internet streaming threatened netflix dvd model. Netflix operates via a dvd subscription and video-streaming model. These started as a single subscription, but are now viewed as two separate services. Although sometimes referred to as rental, the model is really a substitute good for conventional use-based media rental. Many firms are forced to deal with technology-fueled disruption that can challenge the current way they do business. However, successfully transitioning to a new business model is often extremely difficult, even for firms that were dominant under a prior operating model. During his time as ceo of netflix, hastings has also served roles for other firms. Board positions of other multimedia companies, good relationships are key, 4. 2 act i: david becomes goliath: crafting killer assets for dvd-by-mail dominance. Reed hastings once said his biggest strategic regret was taking his firm public too early.