First Move and First Pivot

Netflix started as a substitute for renting from a video store. As seen above, one could rent DVDs by mail. When VHS gave way to DVDs then shipping made more sense. However, customers wanted to get movies almost immediately and waiting on a show to be mailed seemed strange. Netflix overcame this obstacle by having the necessary supply (the stores were often out of the new hits) and pricing far below the brick and mortar. Yet, just as people began to become comfortable with the entire mail process for renting movies, Netflix pivoted.

The emerging technology of streaming videos was nothing new. I’d been doing it (possibly illegally) ever since my college years. No one had been able to do it in a mainstream way though. Enter Netflix with streaming videos on Demand. As TVs became smart TVs the trend took off. Netflix was an established brand that seized upon an emerging industry to be the first mover in an already established subscription service. Why would I switch to someone else? I’m already paying my Netflix subscription but now I don’t even have to mess with the mail. Netflix once again hit on multiple fronts when evaluating environmental opportunities.