1 single-space page paper

This is a one page case note:

1. Why did investors bid up Netflix’s shares so dramatically in early 2011?

2. How did Netflix’s cost structure change as the company moved from movies on disk-through-the-mail to streaming?

3. What were the strategic uncertainties facing Netflix as they experimented with streaming video?

4. Customers had a bad reaction to the announcement of monthly fees for streaming video; compared to previous prices for movies on disk, (which are necessarily constrained by the time to mail back and get new disks) the price seems fair – why was there a backlash?

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