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Streaming Service Value Curve - Netflix vs Traditional Cable TV
How Netflix disrupted the entertainment industry by eliminating schedules and creating on-demand viewing.
Value Curves
Reference Company (dashed line)
Strategy Overview
Netflix eliminated scheduled programming, advertisements, and installation requirements while creating on-demand access, binge-watching, and device flexibility.
Netflix (shown in #EF4444) represents the innovative approach, while Comcast Cable (⭐ reference) represents the traditional industry standard.
Key Differentiators
- Eliminated fixed schedules and commercial breaks
- Removed installation and equipment requirements
- Created anytime, anywhere viewing
- Introduced binge-watching with full season releases
- Personalized recommendations using algorithms
ERRC Framework Applied
🚫 Eliminated
- Scheduled Programming
- Advertisements
- Installation Required
📉 Reduced
📈 Raised
- Monthly Price
- On-Demand Access
- Binge-Watching
- Personalization
- Device Flexibility
- Original Content
✨ Created
- Monthly Price
- Binge-Watching
- Personalization
- Device Flexibility
- Original Content
Blue Ocean Insights
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Shifted from appointment viewing to on-demand consumption
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Made premium content affordable and accessible
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Created a new viewing behavior: binge-watching
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Turned TV from shared to personalized experience