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NetFlix, Netflix vs. Blockbuster (Platform vs Traditional Business in…

- - - - focuses on other opportunities
        (the rest of Asia, Europe, Latin America..)
      - Netflix has a China strategy
        
        spending more money on acquiring rights to Mandarin-language content and producing its own originals
        
        focusing on the millions of Mandarin speakers outside of China
        
        buying the copyrights of China's excellent films to launch on its plaform
        
        partnering with Chinese streaming platforms
        (Alibaba-owned Youku) - 2020
        (Baidu-owned iQiyi) - 2017 - ended by verification system and users’ tastes problems
      - 6 reasons
        
        China’s streaming sites are really strong
        (Baidu, Alibaba và Tencent)
        
        Prices are low
        
        Censorship and restrictions are crazy
        
        It’s a dumpster fire of cash
        
        Netflix is too late
        
        the local government in China would like the Chinese version of Netflix to be Chinese
- - - - The Global Financial Crisis of 2008-2009
        
        Digital copies of films was introduced
        
        A rise in customers buying on-demand
        
        The launch of streaming services
      - Framework
        
        Chapter 4: Disruption
        How Platform conquer and transform
        traditional industries
        
        Development of
        Internets
        Digital Technologies
        
        bigger reach
        higher speed
        better convinience
        
        reducing marginal costs of distribution
        serving larger markets with smaller investment
        
        Traditional Strategies
        
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        Electronic Marketplace
        
        an infrastructure/
        coordination mechanism
        
        digital interconnections
        
        access to more resources
        virtuous feedbacks
        
        1 more item...
        
        Physical Marketplace
        
        a pipeline
        
        physical connections
        
        limited connection space and time
        direct feedback
        
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  - - - opened a warehouse
        ($6 million)
        was sold to Wayne Huizenga
        ($18.5 million)
        
        (~2,800 stores)
        24h-stores was opened
        acquiring British video rental chain Ritz and U.S.-based Major Video and Erol’s
        
        was sold to Viacom Inc.
        ($8.4 billion)
        
        charged Reed Hasting $40 for being late in returning “Apollo 13.”
        
        (6,000 stores)
        DEJ productions was created
        to provide exclusive films
        
        Viacom took the Blockbuster public
        
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  - - - (239,000 subscribers)
        switched to a subscriber-based model
- - - - 1997
        
        1998
        
        1999
        
        2000
        
        2002
        
        2004
        
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