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Showing posts from September, 2011

Disrupt Yourself Before Others Disrupt You: DVD To Streaming Transition Is Same As On-Premise To Cloud

Recently, Netflix separated their streaming and DVD subscription plans. As per Netflix's forecast, they will lose about 1 million subscribers by the end of this quarter. The customers did not like what Netflix did. A few days back, Netflix's CEO, Reed Hastings, wrote a blog post explaining why Netflix separated their plans . He also announced their new brand, Qwikster, which will be a separate DVD service from Netflix's streaming website. These two services won't share the queues and movie recommendations even if you subscribe to both of them. A lot has been said and discussed about how poorly Netlflix communicated the overall situation and made wrong decisions. I have no insider information about these decisions. They might seem wrong in short term but I am on Netflix's side and agree with the co-founder Marc Randolph that Netflix didn't screw up . I believe it was the right thing to do, but they could have executed it a little better. Not only I am on their si

Freemium Is The New Piracy In The SaaS World

It is estimated that approximately 41% of revenue, close to $53 billion, is "lost" in software piracy . This number is totally misleading since it assumes that all the people who knowingly or unknowingly pirated software would have bought the software at the published price had they not pirated it. RIAA also applies the same nonsense logic to blow the music piracy number way out of proportion. The most people who pirate software are similar to the people who pirate music. They may not necessarily buy software at all. If they can't pirate your software, they will pirate something else. If they can't do that, they will find some other alternative to get the job done. Fortunately, some software companies understand this very well and they have a two-pronged approach to deal with this situation: prevent large scale piracy and leverage piracy when you can't prevent it. If an individual has access to free (pirated) software, as a vendor, you're essentially encouragi