A decade before Airbnb persuaded homeowners to transform their homes into hotels, Netflix convinced its users to turn theirs into mini Netflix warehouses. Customers who held onto their DVDs for longer meant fewer shipping costs for Netflix, and fewer DVDs for the company to manage and store. Netflix tracked heavy users of its service — labeling them internally as “pigs” — and secretly throttled their deliveries. It didn’t matter if Netflix rented fewer DVDs than Blockbuster,...| n+1
About | Articles | Updates | Speaking | Consulting What is Aggregation Theory? Aggregation Theory is a completely new way to understand business in the Internet age. Business schools suggest that w…| Stratechery by Ben Thompson
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