Creative destruction is a concept of capitalism, where the business innovations of today, destroy the innovations of yesterday. Netflix is finding out that those red envelopes aren’t enough to keep the lights on forever and is investing heavily in video streaming technologies, lest they become like Kodak.
Kodak just misjudged how fast consumers would give up on film and start snapping up digital cameras. And it misjudged its ability to outrun both trends.
Plus, they had the foresight to get their company name right:
But Reed Hastings, the founder and chief executive, and early employees, recognized that delivery of movies over the Internet would replace the mail carrier soon. They named the company Netflix, not Mailflix or DVDs by Mail.