Netflix Splits Itself In Two To Avoid The Innovator's Dilemma

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. 

nflx

Photo: Netflix

Netflix is tackling the innovator’s dilemma head-on by being ruthless about its legacy business and focusing everything on the future. 

This post was published as part of BI Research, a new industry intelligence service from Business Insider. BI Research provides real-time research and analysis on the technology industry. The service is currently in beta and is free. To learn more and sign up, please click here.

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