How would you measure the success of Netflix DVD Service (Legacy)?

Introduction

Measuring the success of Netflix's DVD Service requires a comprehensive approach that considers its unique position as a legacy product in an increasingly digital landscape. To effectively evaluate this service, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context (5 minutes)

Netflix's DVD Service, launched in 1997, allows subscribers to rent DVDs and Blu-ray discs by mail. Despite the company's shift towards streaming, this service continues to operate, catering to a niche market.

Key stakeholders include:

• Subscribers: Seeking access to a wide range of titles, including older or less mainstream content
• Netflix: Maintaining a legacy service while focusing on streaming growth
• Content providers: Licensing physical media rights
• Postal services: Crucial for delivery and returns

User flow:

1. Subscribers browse and select titles online
2. Netflix mails the DVDs to subscribers
3. Subscribers watch and return DVDs using pre-paid envelopes
4. Netflix receives returns and updates the subscriber's queue

This service fits into Netflix's broader strategy by:

• Serving customers in areas with limited broadband access
• Offering titles not available on streaming platforms
• Maintaining relationships with traditional studios

Competitors like Redbox offer physical rentals through kiosks, but Netflix's mail-based model provides a wider selection and convenience.

Product Lifecycle Stage: Mature/Decline - The service has been operating for over two decades and is facing declining subscriber numbers as streaming becomes more prevalent.