But Hastings had his eye on the bigger prize: delivering video over the Internet. He stressed that the company was named Netflix from the start and not DVD-by-mail.
2/15 Finding value where no one is looking
According to the HBR, only 30% of the $NFLX's DVD rentals were new releases compared to 75% at Blockbuster outlets.
By targeting under-valued titles, Netflix is able to carve out a profitable DVD rental business.