If you’re a subscriber you already know that convenient postal delivery and low cost rental prices are at the core of why you signed up. The subscription based Netflix business model makes renting at Blockbuster old school.
If Netflix continues to thrive despite the economic environment, Blockbuster could very well be a thing of the past.
Mail-order service sets Netflix apart from competitors like Blockbuster but that alone isn’t enough to survive the recession. Their ability to recognize current trends and opportunities such as the expanding broadband market is a huge contributing factor to their recent success.
Netflix is poised to take advantage of this market and deliver new streaming services over the Internet at a time when people are downloading more often than popping in a DVD.
The folks at Netflix saw an opportunity to expand despite the recession and they took it. Expanding your business to solve a problem created by the recession can render your model recession resistant. In the case of Netflix, expanding the business and introducing new products aligned with current consumer trends has done just that.
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