Netflix is rebranding its DVD-by-mail service as “Qwikster” and keeping the Netflix brand only for streaming.
This is an audacious move that further highlights that Netflix sees its future in streaming, not DVDs.
And it’s the right one. It comes after the markets overreacted to Netflix’s new subscriber guidance: while DVD customers are shrinking, streaming subscribers, who are the future, are still growing.
Netflix is tackling the innovator’s dilemma head-on by being ruthless about its legacy business and focusing everything on the future.
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