1.
THE TUDUM
STORY
HOW NETFLIX HAS
DISRUPTED LINEAR TV
AND VoD MARKET

2.
THE NETFLIX STORY:
WORLD’s LARGEST MOVIE
HOUSE THAT OWNS NO
CINEMAS

3.
HISTORY OF
NETFLIX
• Founded in 1997 as DVD mail-by-rental firm and competed for the first five
years with Blockbuster LLC.
• Used many strategies and technological advancements
• Blockbuster dominated the industry then in the US market but it failed to deal
with dynamic changes of the market.
• Soon, it filed for bankruptcy in 2010 and the same year, Netflix was valued to be
at USD 13 billion.

4.
HISTORY (CONTD..)
• By 2007, Netflix began streaming TV shows and movies in US, and
internationally in 2010 and within six years, it was available in 190 countries.
• As of today, it is the most preferred OTT and SVoD platform in countries like US,
UK and Australia.
• While it became popular amongst Millennials, this shift in consumption from
linear to internet model started affecting MVPDs.

5.
HOW NETFLIX BECAME A DISRUPTOR IN
ENTERTAINMENT MARKET

6.
• Eliminated late fee charges.
• Expansion of internet ecosystem
• Ad-free content
• Flexibility
• Making own content
• High quality viewing experience
HOW NETFLIX BECAME THE
DISRUPTOR IN ENTERTAINMENT
MARKET

7.
• Early-adoption strategies for consumers (Innovators, early majority etc.)
• Targeting population segment overlooked by competitors
• Delivering a substandard but more custom-made alternative at a lower price
• Upmarket movement
HOW NETFLIX BECAME THE
DISRUPTOR IN ENTERTAINMENT
MARKET (CONTD.)

8.
WHY NETFLIX BECAME THE TOP
DISRUPTOR
Photo source: Bloomberg

9.
• Staying ahead in competition
• Being opportunistic
• Wise expansion
• Set trends
WHY NETFLIX BECAME THE TOP
DISRUPTOR

10.
• Binge-watching concept brought an enhanced experience
• However, its novelty is fading away due to the overflow of compelling video
content from competitors.
• Decrease in customers due to no change in model
WILL NETFLIX be affected due to another
DISRUPTOR?

11.
• Make less but better original programming
• Start paying a back end to continue to attract the best content
• Stop ending series at the end of the second or third season
• Consider advertising as a way to keep costs down
• Lock down the uncommitted players
WHAT CAN BE DONE FOR A SOLUTION?

12.
WHAT COMPANY HAS TO SAY
“Over the following decades,
Internet TV will replace
linear, and we hope to keep
leading by offering an
amazing entertainment
experience saw a market
opportunity with the services
it could provide to

13.
• Netflix Disruptive Innovation by UK Diss
• Disruptive Innovation – What is It and How Does It Work?
• How Netflix Is Changing the TV Industry
• Disruptive Innovation: A case study on how Netflix is transforming the living
room
ACKNOWLEDGEMENTS

14.
THANK YOU