Sure most everyone has heard of Netflix by now the purveyor of video DVDs by mail. As you pay one low price and keep them as long as you want which sent the old school king “Block Buster” to the bottom of the drink like a lead sinker on the end of a fishing line. As this start-up launched on the back of Amazons Cloud services using an unheard of business model only to rise to the top of the heap.
As a side bar it’s worth noting in reference to yesterday’s post on the need for business’s to look to the future for opportunities rather than attempting to become number one in the current business model. As if Netflix would have gone head to head with Block Buster in the old school space of brick and mortar rentals, it would be them at the bottom of the drink and it would be “Net-who”.
However this is just the point as our Friends at the venerable wannabe are making some new waves which are worth taking a look at. As the purveyors of the bright red package want to charge more for the same service, yet get this one, streaming customers stay the same [price]! Hint, hint the days of “hard media” are gone over said and done with! As anyone who is still clasping on to that paper back, DVD player or heavens forbid CD player get a life as the 90’s called and they want their stuff back!
As what the media and most everyone else is missing is not the fact that Netflix appears to be greedy taking people’s hard earned during tough economic times. Yet they want to shift the market away from “hard media” as it’s a thing of the past, and they are shooting for the next big business win leaving the past and those who cling to it in the dust.
As the portable device market is the new game changer as it will reshape the “media” market place in whole by providing a faster cheaper better connection between producers and consumers. Also as the market tips away from old school hard media, the cost of this (media) will rise removing the current economies increasing the cost which will change the adoption model from that of a “pull” where people want to adopt (current model). To that of a “push” model where people must adopt should they want to take part in the offering (future model).
With this move my feelings have changed from a transitory curve of 5 to 10 years down to one of five years maximum. As this is a telling story unfolding in front of us we need to watch as well as the sub 500 dollar Kindle Tab which Amazon is set to launch with a 250 dollar retail price point will be yet another nail in the coffin of many old school purveyors of information. As it ain’t your daddies media world any more…