August 7, 2015

WINNING THE WAR ON WAGES:

The 'Netflix effect': an excellent example of 'creative destruction' (Mark J. Perry, 8/07/15, AEI)

Netflix is an amazing digital success story. Starting out almost 15 years ago as a predominantly DVD subscription service, Netflix was able to pivot along the way and take advantage of rapidly evolving mobile technology and ever-improving internet speeds to become one of the largest video distribution networks on the planet.

The success of Netflix is an excellent example of "creative destruction," a term originated in the 1940s by economist Joseph Schumpeter, who described it as the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new structure. This process of creative destruction is the essential fact about capitalism." In fact, Netflix has been so disruptive to existing industries, that its impact is now being referred by some as as the "Netflix effect." Here are a few examples of the "Netflix effect" and the industries that have been "Netflixed."


Posted by at August 7, 2015 7:54 AM
  

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