Lessons From Netflix

Rich Gordon draws some parallels between the Netflix online DVD subscription service and online content. “[N]etflix has done something that Blockbuster hasn’t– [it] turned video rental from an a la carte service (rent when you want, don’t pay if you don’t rent) into a subscription service (fixed $19.95 per month fee for three movies at a time). What makes a service so valuable to someone that they’re willing to sign up for service with a monthly charge? I’d love to have a better understanding of this.”