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Netflix: Strategic change Streaming/DVD

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Summarize the strategic change that Netflix made when they changed how customers rent and pay for DVDs vs. Streaming. What changes did Netflix make, and what was the result? Why?

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This solution discusses the strategic change Netflix made when they changed how customers rent and pay for DVDs vs. Streaming. Includes APA formatted references.

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Netflix wanted to encourage more subscribers to stream movies because this offers a cheaper delivery system for the company (they save the cost of processing and mailing DVDs). To this end, they decided to increase the mail and online combination plan from $10 to $16 per month (a 60 percent increase). They offered subscribers an opportunity to pay $8/month ...

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