Посты с тэгом: Netflix

The Remaking of Netflix

Published date: November 28, 2011 в 3:00 am

Written by: boydadmin

Category: Uncategorized

Tags: big picture,business model innovation,innovation method,Netflix,RIM,SIT

Netflix needs urgent change to stop the bleeding and rebuild its business model. It is running out of cash and losing support from customers and shareholders. Management must re-establish its credibility with bold moves. Here is a series of steps and techniques to do that.

1. Reframing: Use the Subtraction Tool to reframe and see new possibilities. Make a list of the major components of the company (patents, products, brand, employees, customers, network, etc.). Now imagine Netflix will merge with a company from another industry. Create a phrase something like this: “Netflix cannot stream movies to customers, but it has all the other components. What company has the ideal set of products that would best fit the remaining resources of Netflix?” For example, would a company in the retail sector have products that would find new growth within the Netflix enterprise? Companies like Path Intelligence might be a good candidate. Perhaps Netflix could merge with a brick and mortar movie theater company like AMC Entertainment and leverage the strengths of each. Perhaps Netflix links up with Research in Motion to leverage its proprietary Blackberry network for streaming data. Use this same approach for all the components, one at a time, to envision new possibilities.

2. Reverse Assumption: This technique helps “break fixedness” about assumptions. List the key business assumptions about Netflix and its industry. For example:

Netflix streams content to customers
Consumers want more options
Netflix sends DVDs to customers

Reverse the assumptions one by one. “Customers stream content to Netflix.” Perhaps the new business model is to offer a service allowing customers to stream information to Netflix which is then re-streamed to others. Perhaps Netflix uses its streaming skills to enter the business-to-business market, servicing banks or other companies that need to move digital content in a unique way. Perhaps customers send DVDs to other customers instead of sending it back to Netflix, saving time and money.

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