I came across this story a while back and faved it for later, which is now. Innovation is defined as a change in the thought process for doing something or “new stuff that is made useful” (from Wikipedia). The following example focuses on the change in the thought process of a company’s CEO, and the actions he’s taking to keep his company in the lead.
Netflix Strategy - The Future
Reed Hastings, Netflix Co-founder and CEO, uploaded a presentation last month, called Netflix Business Opportunity (RSS readers click here). In the 40-slide deck, Reed quickly reviews Netflix performances to date and shifts to the future – threats and opportunities, and what his company must do in order to continue the growth and lead the market.
Netflix - The Future
In a candid inside look into his own company, Reed is saying ‘Our main revenue stream is dying, we need to find and cultivate a new one’. That’s not an easy statement to read, yet alone write, for a CEO. The DVD-by-Mail service will grow for 3 more years, but streaming will eventually replace it. If Netflix wishes to grow, it must focus on ‘a single segment of the streaming market, where we can gain and maintain leadership’.
Netflix segment - to lead and maintain leadership
How Netflix intends to gain and maintain leadership? By Democratizing Innovation, meaning leveraging the company’s assets – its customers and employees. Reed explains the threats to the company’s new strategy (Pay-Per-View, Piracy, Cable/Sat/DVRs, Direct/Online/Free, etc), but also how to compete with them – providing superior customer service, improving subscribers’ satisfaction, creating amazing user experience, and keeping subscribers raving about Netflix (among others).
Democratizing Innovation
The complete deck is embedded here, definitely worth the reading time. I know that once Netflix launch in Israel (expanding international begins 2010) – they have my vote, and subscription.
