If you don’t design your own obsolescence, someone else will. It would be logical to guess that cable companies and satellite operators like Comcast and DirecTV dominate the VOD (Video on Demand) market, but according to a recent review by The NPD Group
, a leading market research company, Netflix has grabbed 61% of the market, combining streaming and downloading movies. This happened very, very fast. Netflix didn’t take market share from Blockbuster in DVD rental business and then rest on their laurels. They went after the big boys that presumably controlled the streaming market with cable and satellite modems in homes across America.
Sales of DVD’s and Blue Ray discs still capture most of the home video dollars, but the instant access to movies through streaming is taking a large bite out of those sales. What’s next? How will your competitors use technology to take market share from you? Beat your competitors by designing your own obsolescence.
Blockbuster photo courtesy of Dave Dugdale.