| Summary: | By 2009 Netflix had all but trounced its traditional bricks-and-mortar competitors in the video rental industry. Since its founding in the late 1990s, the company had changed the face of the industry and threatened the existence of such entrenched giants as Blockbuster, in large part because of its easy-to-understand subscription model, policy of no late fees, and use of analytics to leverage customer data to provide a superior customer experience and grow its e-commerce media platform. Netflix's investment in data collection, IT systems, and advanced analytics such as proprietary data mining techniques and algorithms for customer and product matching played a crucial role in both its strategy and success. However, the explosive growth of the digital media market presents a serious challenge for Netflix's business.
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| Item Description: | Originally Published in: Walker, R., Jeffery, M., So, L., Sriram, S., Nathanson, J., Ferreira, J., & Feldmeier, J. (2010). Netflix Leading with Data: The Emergence of Data-Driven Video. 5-110-006. Evanston, IL: Kellogg School of Management, Northwestern University. |
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