2007年，Netflix推出了公司的在线流媒体服务。用户仍然可以继续邮购DVD租赁，但也可以流有限的时间在线-所有的固定每月订阅价格(赫芬顿邮报，2015年)。这是由于现有技术和消费者需求的变化造成的结果。就像十年前从VHS转换到DVD一样，接下来的变化也随之而来。这是高速互联网和可携式电脑流媒体的采用和可用性。2010年，Netflix开始向全球市场扩张。公司首先扩张到加拿大，然后在2011年进入世界各地的其他国家(Lotz, 2017)。竞争很快随之而来,不仅其他在线蒸服务成为可用的和更广泛的利用,如Hulu和Amazon Prime视频,但电视网络也开始提供在线订阅服务,由于流媒体服务使消费者取消或减少他们的电缆包同时还享受媒体娱乐,只是以更低的成本。为了保持和扩大他们的市场份额和客户群，Netflix开始制作原创和独家的内容，包括电视剧、热门演员主演的电影和纪录片。Netflix可以为客户制作热播剧，因为他们根据用户的喜好制作节目。通过使用他们自己的网站分析他们的成员在看什么，看了多长时间，当他们停止看一个系列或电影，以及更多。例如，Netflix上70%的用户流媒体是电视剧(Fortune.com, 2009)。这些观察帮助他们制作了高收视率、获奖的独家剧集，帮助Netflix留住了现有的会员，并获得了新的订户。由于在线流媒体订阅用户的切换成本非常低，Netflix认识到这一潜在威胁并根据其做法进行调整至关重要。
In 2007, Netflix launched the company’s online streaming service. Subscribers were still able to continue mail order DVD rentals, but could also stream a limited number of hours online – all for the fixed monthly subscription price (Huffington Post, 2015). This was the result due to the change of available technology and consumer wants. Just like ten years before when the switch was made from VHS to DVD, the next change was ensuing. This was the adoption and availability of high speed internet and portable computers capable of streaming media. In 2010, Netflix began expanding into the global markets. The company first expanded into Canada, then in 2011 moved into various other countries around the world (Lotz, 2017). Competition quickly ensued, not only were other online steaming services becoming available and more widely utilized, such as Hulu and Amazon Prime Video, but television networks were also beginning to offer online streaming subscription services, as streaming services had enabled consumers to cancel or decrease their cable packages while still enjoying media entertainment, just at a lower cost. To maintain and grow their market share and customer base, Netflix began to produce original and exclusive content in the form of series, movies featuring popular actors, and documentaries. Netflix could produce smash hits for their customers because they created shows based on what their users preferred to watch. By using their own website’s analytics of what their members were watching, for how long, when they stopped watching a series or movie, and more. For example, 70% of media being streamed on Netflix by its’ users are television series (Fortune.com, 2009). These observations helped them to produce highly rated, award winning exclusive series, which helped Netflix to keep their existing members and gain new subscribers. Since online streaming subscriptions have a very low switching cost for users, it was vital that Netflix recognized this potential threat and adapted their practices in accordance.