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DVD-by-Mail

Netflix's initial business model that allowed customers to receive DVDs directly at home.

Long Tail Strategy

A concept that allows companies like Netflix to offer a vast array of niche products, making money from less popular titles.

Streaming

The transition from DVDs to online content delivery, giving users instant access to movies and shows.

Netflix Originals

Content produced by Netflix to differentiate from competitors and reduce reliance on external studios.

Global Expansion

The strategy of entering international markets to grow the subscriber base beyond the U.S.

Data + Technology

Utilizing algorithms and customer data for personalized recommendations and to enhance user experience.

Switching Costs

Factors that make it difficult for customers to change to a competing service, such as personalized data.

Churn Rate

The rate at which customers leave Netflix, with low churn signifying high customer retention.

Atoms to Bits

The shift from physical media products (like DVDs) to digital streaming services.

Qwikster

The failed attempt to separate Netflix’s DVD rental service into a separate entity, leading to customer backlash.

Cinematch

Netflix’s recommendation system that personalizes viewing suggestions based on user data.

Fixed Costs

Costs that do not vary based on the volume of production, such as infrastructure costs for streaming.

Marginal Costs

The cost associated with producing one additional unit; for digital products, this is often low.

Coopetition

A business strategy where companies cooperate and compete simultaneously, like Netflix and Amazon.

First Sale Doctrine

Legal principle allowing the distribution of physical copies of copyrighted products, but not for digital content.

Windowing

The strategy of making content available through different distribution channels over time.

Supplier Power

The influence held by content studios over Netflix regarding pricing and availability of content.

Decision Fatigue

When customers become overwhelmed by too many choices, leading to indecision.

Congestion Effect

A phenomenon where an increase in users diminishes the value of a service or product.

Disintermediation

The process of removing intermediaries from a distribution channel, allowing direct access to customers.

Channel Conflict

Tension between businesses and their partners when one is perceived as a competitor.

Streaming + Scale Advantage

The benefits derived from having a larger content library and a larger customer base.

Netflix’s Technology Infrastructure

The systems and platforms (including AWS) that support Netflix's streaming capabilities.

ISPs + Bandwidth Caps

Restrictions imposed by internet service providers on the amount of data consumers can use.