It is hard to know for sure, but it is possible the recent bankruptcy of Borders bookstore might have played some role in convincing Netflix CEO Reed Hastings to move up the speed of the Netflix transition from DVD rental to streaming.
Netflix long has planned for such a move, but it is conceivable that the Borders bankruptcy, and clear sluggishness at Best Buy, could have convinced Netflix to move faster.
Add new fourth generation wireless networks, tablet demand and faster uptake of smart phones and one can argue the business background for streaming is changing.
One also might note that creating a separate Qwikster business makes it easier to sell the whole DVD business, if desired.
Netflix steps up streaming effort
Monday, September 19, 2011
Netflix Separates DVD, Streaming Businesses
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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