Netflix – A Disruptive Innovation : (Video on demand for movie rentals)



hello guys today I'm going to tell you a success story of a company known as Netflix in order to get started we need to go way back were it not no go on yeah let's that's good enough so you guys must have remembered video stores right basically video stores were stores where you'd rent a DVD of the movies you like it was lengthy process wasn't it so if I needed to get myself a copy of Star Wars and I'd have to drive all the way to the store look for the DVDs of Star Wars by going to every single aisle until I find them bring it back home watch it and rigidly back in time so that the other customers could watch the same movie yeah but what if you couldn't return it back in time right this is where it all started yeah it all started with this guy his name is really hassling by the way but yeah it all started when he couldn't return the DVD he rented back in time and ended up paying $40 in a video store so he wanted to build a platform that could simplify this whole video rental process and also save his $40 late fee oh yes so all these video stores had this business model that was totally making profit out of his so-called late fees so he decided to join them with a new business model known as dvd-by-mail so Klein should ask for movies and then these guys they just send it to the address using a US mail and after watching it climbed to a mail it back but later on they thought hey aren't we making our customers pay a lot of money I mean every time they rented a CD or dvd we're making them pay two or three dollars that's that's not good let's let's try something new let's move to this new model called as subscription-based model or all-you-can-eat model what's that you say let them have every single movie they want for only $20 a month but one by one after a few years keeping the same model they decided to try this new technology known as video streaming in the name of this model was subscription-based video on-demand again as name suggests that it was allowing users to play the video whenever they want then why would they even bother move into something that was different from what they were doing so the thing is if five customers rented the same movie then they have to buy five DVD first of all by moving to this model they wouldn't need to buy multiple DVDs and store all these DVDs separately throw in our old ones making space for new ones all these hassles were completely gone out a window and he was online so you know what that means right going online means going global they would have white customer reads from all over the world but that's an advantage for them why would someone even bother paying them for something online first of all if I was customer and someone would bring me a movie without me having to go to the store I would definitely do that it helps me save my time you know again $20 only minute movies for a month the car surveillance I could just watch them in all brands of devices like TV computers mobile phones tablet console stereo oh wait not long on this theory anyway and I would even get a recommendation based on movies what I've watched before I don't even need to bother searching for the movies that I might like and finally I'd have this legal access to reach movie database so instead of going to aisles video searching would be a lot easier and faster so I want to give you a basic overview of the technology because I don't want to over complicate things right so the first of all these movies they've got this license for you it's basically stolen server but for this exact work they've used Amazon's elastic compute cloud server also known as EC it's basically a cloud technology in form of platform-as-a-service so the files are stored in server but when user access it using mobile apple with web browsers that connected via an application interface which then connects to content delivery networks often known as CDN which usually browse the replicas of real movies sorting Network known as cache and try to display it to the users it helps to load files quickly with less bandwidth consumption when users provided with recommendation or video search they use this algorithm of their own from Netflix prize contest which is based on neuron prediction Network it displays movie recommendations based on these algorithms and whenever you select the movies you want to play it locates the user location CDN determines the speed of your network fetch the video files via html5 technology and stream it using streaming services or codecs so those are some basic overview of technologies in simple words let's talk about what kind of innovation it is it might look like an incremental innovation because you know it's all started with one concept of movie rental and it was further enhanced to turn it into innovation but it actually is a disruptive innovation because the sort of innovation usually starts at the bottom of the market and then harshly moved to the top displacing the established companies Netflix actually did something similar instead of approaching every movie loving customers a way for those who are left unattended or approached by their competitor block watch LLC in a Hollywood video since Netflix wasn't interfering with their business blockbuster the movie giant didn't care much about in Netflix which Netflix took as an advantage for the innovation and it has been able to shut down blockbuster LLC there's no doubt that it's a disruptive innovation but what about the source of innovation remember how it all started yeah with just an idea of single-person and branched out with two or three individuals working on the same idea they believed to be a solution the source and origin of an innovation was entrepreneurial but Netflix has been here since God knows how long but why now why was it able to shut down the blockbuster just now why not three years ago why not at the beginning well with the rise of increasing technologies and gadgets being cheaper and people being people you know normally looking for an easy way to do things it was time people that fed up with Blockbuster and its lengthy process allowing you to watch movie without moving an inch from the computer was a main reason of Netflix being a success and blockbusters demise so the result of innovation the market growth has been massive for Netflix after the introduction of video on-demand service Netflix currently is providing its service in more than 190 countries and 17 different languages it has around 83 million paid subscribers worldwide with more than six point seventy eight billion dollars of revenue even though the use of Netflix has been massive in other countries such as Hughes in Canada it hasn't been able to get what subscribers or the users win the Australian market this might be because of the bandwidth issue or limited sells compared to us currently a strong version of Netflix has 1500 stars whereas the US version has about 9000 sighs well it kind of helped on discouraging the privacy to some extent one could easily get many movies as they want for just around 7.99 dollars per month you would cheap ops onion and there's no need to download illegally well that's another presentation hope you guys enjoyed it you

10 Comments

  1. Mikey Anthonisz said:

    Sadly Disney, will copy their business model, so unless if Netflix comes up with their own superheroes like Marvel, Netflix will be in trouble…

    June 30, 2019
    Reply
  2. Bambee xo said:

    Actaully it was s many movies as they want as long as they had no more than 4 at any given time not one by one

    June 30, 2019
    Reply
  3. G Dogg said:

    i actualy thought about video on demand back in the early ninties.. however the technology wasnt there.

    June 30, 2019
    Reply
  4. C A said:

    Too long, Too slow but great information.

    June 30, 2019
    Reply
  5. Marcus Bodington said:

    Great video!

    June 30, 2019
    Reply
  6. XY H said:

    Hey~Sagoon~how you made it? I'm really curious the process how to combine concept interpretation with quick drawings~what kind of technology had you used? If you don't mind, could you plz give me a hint?

    June 30, 2019
    Reply
  7. Pooja Purohit said:

    Hello! I need some more info on the topic. If u could assist me in some way, please

    June 30, 2019
    Reply
  8. IllusionaryRooster said:

    Informative, but that fake hand is really weird…
    why not just use simple graphics instead of the fake drawing board presentation?
    as is, it feels disingenuous

    June 30, 2019
    Reply
  9. krishna yadav said:

    are u nepali. proud of u. keep doing good.

    June 30, 2019
    Reply
  10. rishal24 said:

    Hi what programme did you use to create this video? thank you!

    June 30, 2019
    Reply

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