Acta Scientific Computer Sciences (ASCS)

Review Article Volume 2 Issue 4

Netflix - An Example of a Disruptive Innovation Business Model

Kiril Kiroski and Smilka Janeska-Sarkanjac*

Faculty of Computer Science and Engineering, University Ss Cyril and Methodius Skopje, Macedonia

*Corresponding Author: Smilka Janeska-Sarkanjac, Faculty of Computer Science and Engineering, University Ss Cyril and Methodius Skopje, Macedonia.

Received: March 14, 2020; Published: March 23, 2020



  Internet and its continuous advancement is changing the way we work, communicate, and purchase goods and services. It has great impact on our lives and changes traditional approaches to number of human activities. It destroys obsolete businesses, and promotes new and innovative ones. This paper tries to analyze the business model of Netflix, and the ways it introduces disruptive innovation into the world of television. In this paper, we provide an overview of how Netflix entered already established market, and how they managed, through an innovative use of ICT, to disrupt major players, ultimately creating a completely new market and becoming a major player in it. We will also describe how they are use modern ICT technologies to innovate the ways they create company products and services, work with clients, compete on the market, and create promotional activities.

Keywords: Netflix; Disruptive Innovation; Internet Marketing



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  3. Financial overview. 
  4. Philip Kotler and Gary Armstrong. “Principles of Marketing”. 14th edition, Prentice Hall (2012). 
  5. Oslo Manual. “Guidelines for collecting and interpreting innovation data”.
  6. Netflix company culture.
  7. Patty McCord. “How Netflix reinvented HR”.
  8. Megan O’Neill. “How Netflix bankrupted and destroyed Blockbuster”.
  9. Chunka Mui. “How Netflix innovates and wins”.
  10. Clayton M., et al. “What is disruptive innovation”. Harward Business Review (2015). 
  11. Toke Kruse. “Disruptive innovation: how Netflix revolutionised the video market”.
  12. “Why Netflix is one of the most innovative companies of 2017”.
  13. Ken Auletta. “How Netflix killed Blockbuster”.
  14. Dan Moskowitz. “Who are Netflix’s main competitors?”.
  17. Robert S. “Netflix’s uncertain future”. Harvard Business School. 
  18. Daniel Newman. “Improving customer experience through customer data”.
  19. Phil Simon. “Big data lessons from Netflix”. 
  20. Tom Vanderbilt. “The science behind the Netflix algorithms that decide what You’ll watch next”.
  22. Amanda Lotz. “The unique strategy Netflix deployed to reach 90 million worldwide subscribers”.
  23. “Netflix's view: internet entertainment is replacing linear TV”. 
  24. Dennis Williams. “4 content marketing lessons to learn from Netflix”. 
  26. Ryan Lawler. “How Netflix will use big data to push House of Cards”.
  27. Chris Kerns. “Streaming social: What marketers can learn from Netflix’s social strategy”.


Citation: Kiril Kiroski and Smilka Janeska-Sarkanjac. “Netflix - An Example of a Disruptive Innovation Business Model”. Acta Scientific Computer Sciences 2.4 (2020): 09-15.

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