Netflix (B): The 2011 fiasco (Cartoon case)
In July 2011, after its share price had reached an all-time high, Netflix announced its intention to split the company’s DVD rental and online movie streaming services by creating two separate businesses, Qwikster.com and Netflix.com. The change in its business model would entail an important price increase. Following angry protests from customers, including a negative Twitter stream, Netflix’s CEO and founder Reed Hastings sent subscribers a personalized e-mail of apology which only served to make matters worse. The case describes the events that took place between July and October 2011.
Discuss the motivation behind a highly successful industry leader’s radical change of business model and the ensuing failure of its strategy.
Netflix, Media
2011
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
Bossard, a Swiss company founded in 1731, has successfully transitioned from a product-centric approach to one that offers services and solutions. ...
99designs.com is a global platform connecting freelance designers with potential clients. The case study examines the potential impact of generativ...
In this study, we analyze how the performance-aspiration gap influences strategic change in family firms, providing evidence of the moderating role...
The call by the former Italian prime minister and ECB president for massive investment in the EU is a wake-up call to Europe's economic stagnation....
The case highlights the significant role played by the International Olympic Committee (IOC) in reducing its environmental footprint and promoting ...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in Review of Managerial Science October 2024, vol. 18, pp. 2981-3005 https://doi.org/10.1007/s11846-023-00703-3
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications