With nearly 25 million customers using Netflix, it's clear that everyone will have an opinion on Reed Hasting's decision to split DVD and streaming businesses. And many short-termists think it's a bad idea. Here's why it's actually a great strategic decision.
Every company we invest in aspires to lead whatever market segment it is in. In many cases, they want to create entirely new markets. Regardless, they always have competition, whether from other startups, existing companies, large incumbents, or companies they don't even know about yet.
Strategy+Business magazine offers an interesting article that expands on the current work and thinking of Clay Christensen. What I found most interesting was the distinction between top-down disruptive innovations and grassroots innovations.