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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.

By Richard Brisebois

I help companies develop their leaders. I help managers develop themselves and their teams.
Richard Brisebois is a leadership development professional who has worked with 7,000+ managers, leaders, and business owners in 40+ countries, from Fortune50 executives to SME business owners and tribal leaders. He specializes in designing and facilitating leadership development programs as well in team coaching.

2 replies on “Netflix’s surreal strategy”

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.

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.

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