Sunday, August 5, 2007

A disruptive model for NetFlix and BlockBuster

Videos are mailed to millions of customers, who specifically have asked for a specific video.

The mailer knows the demographics and interest of the customer.

NetFlix, for example, can enclose a disney video with a 20 second introduction and 20 second conclusion.

This could thank the customer for choosing netflix, and in parallel show an ad.
This can generate enough revenue to make the model so disruptive that customers can be mailed DVDs for free for life :)

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