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This move is uncomfortable but necessary. The two businesses are different at every level (supply chain, cost structure, technology, user experience, etc.), an
by jfarmer 15y ago
This move is uncomfortable but necessary. The two businesses are different at every level (supply chain, cost structure, technology, user experience, etc.), and the DVD business is on its way out over the nest 3-5 years.
Better to disrupt yourself now than wait for some upstart to do it and react.
- waterlesscloud 15y agoAnd yet somehow Amazon manages to stream video and sell DVDs at the same time. Heck, they sell lingerie and organic tea at the same time.
- dangrossman 15y agoBut if Amazon's DVD business, or selling organic tea, doesn't perform well in the long run, they'll still be in business. If renting DVDs or streaming movies doesn't perform for Netflix, they're out of the game.
- CamperBob 15y agoThat is a reason to diversify, not to Balkanize the organization even further.
- philwelch 15y agoAmazon built the company around having a million services and products. Netflix built the company around having one service, and then around having two services.
- waterlesscloud 15y agoOr two methods of delivery for the same service.
- true_religion 15y agoThey're a generic store. Netflix doesn't want to be the equipment of an online department store. They're a boutique shop that has gradually realized they have two competing interests under the same house, and would rather have two shops side by side than one.
- deleted 15y ago[deleted]
- maaku 15y agoHow are they any different for the user? They both accomplish the same thing: a subscription service for watching movies.