Netflix’s surreal strategy

Fact: Margins at the DVD business are expected to be around 50 per cent next quarter, and account for four-fifths of domestic profit. Margins for streaming are at about 8 per cent.

Strategy: Heavier focus on streaming.

2 thoughts on “Netflix’s surreal strategy

  1. They just have not done a good job at explaining the whys and hows of this orientation.
    Much like the separation of services before that (which they never implemented after a revolt from customers) and the price hike before that.

  2. How is this surreal? Surely there are other factors involved, like the fact that DVDs are going the way of LPs, cassettes, and 8-tracks.

Comments are closed.