Choosing the Baby or the Bathwater

By • Jun 24th, 2009 • Category: 26th Story, Big Ideas, Business, Technology

netflixThe Wall Street Journal had a fascinating article about Netflix on Tuesday (“Netflix Boss Plots Life After the DVD“). It’s instructive to anyone trying to adapt to changing technology, including book publishers. Netflix’s ceo, Reed Hastings, has great business lending out DVDs, but it’s a business he predicts will begin to die off as early as four years from now. How should he make the move to online distribution without hastening his own core business’s demise? And what does this imply for book publishers who want to build an e-book business without destroying their print revenues any sooner than they have to?

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  • Laura

    I’d agree with Netflix’s CEO about the pending diminution of the DVD rental side of his business, except that cable companies are experimenting with charging more for bandwidth usage, which could keep people renting the media longer rather than pay exorbitant rates for streaming movies.