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