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. 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.

  2. 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.

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