Disruptive strategy in disruption era: Does Netflix disrupt the existing market?
List of Authors
  • Vinesha Anindita

Keyword
  • Netflix, Disruptive Innovation, Business Model, SVOD

Abstract
  • The purpose of this paper is to examine whether Netflix has a disruptive effect on the results of innovation and is included in the category of disruptive innovation. This paper uses a disruptive innovation approach as the main analysis tool and to capture a broad view of Netflix innovation using disruptive innovation as a grand strategy. Netflix is becoming a huge phenomenon with the innovation of the streaming-based video business and offering the watching experience in a new way. This is not only a paradox in the development of digital media but also shifts the definition of television. The author argues that at least Netflix's innovation meets the two main requirements to be categorized as disruptive innovation namely low-end market entry and new market footholds Netflix at least qualifies for the requirements of both a low-end market entry and new market footholds. From the low-end market entry point of view, Netflix has in the past been a serious disruption for Blockbuster and recently television (especially cable-based television) by offering low prices with "all-you-can-watch and when-ever-you-want" facilities. Netflix uses a subscription-based video on demand (SVOD) business model and is a major player in streaming platform services. Through these two approaches, Netflix can qualify to be categorized as disruptive innovation and Netflix's existence itself is a distraction for the incumbent.

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