$NFLX spins off is very unique to IBM r MSFT r NOKIA r HP

Clayton Christensen talks about how companies continue to fail when they are required to disrupt and cannibalize their core businesses based on mkt conditions.

Netflix is trying to do the right thing – but many a companies have failed in the past.

In case of IBM they could not make the switch from mainframe to pc mkt place until new players established themselves. DEC, Wang Labs, etc are also part of that wave of failures. Their then sales teams were listening to their current customers that impacted their ability to go after newer customers and hence failed by the time their current customers are ready for the disruption.

In case of Microsoft they r are still struggling with open source movement and saas!

HP is another recent example …..

And the list goes on and on ..

But companies also learn from their mistakes! IBM after first failure they made a very successful shift from hardware to service. Apple is another stellar example ….

What’s unique about Netflix compared other examples is their suppliers and partners. They are trying to deal with disruption in the distribution of their product rather than actual market itself.
Another unique aspect of Netflix is their customer base for legacy n disruptive products has a huge overlap.

In summary, there is still demand for entertainment and on demand content consumption. The mode of distribution is getting disrupted.

I think Netflix is doing the right thing – but no cigar yet!

@vsistla