Diffusion Of Innovations Theory

Netflix has had a huge impact on our society and has been an innovation that has sparked the creation of many other's like it. It has also changed the way we watch television, as we are able to stream content directly from our homes. 

The diffusion of innovation theory, developed by E.M. Rogers, states that over time, an idea or product or product diffuses through a social system. Netflix started in California by Marc Randolph and Reed Hastings as a DVD rental website where people could go to search through the movies and they would be shipped to their houses. Netflix, throughout the years, continued to advance their technology and create innovative ways to stream TV and movies. 

Netflix figured out a way to let people stream movies and shows right from the comfort of their own homes. Although Netflix started out as a competitor to Blockbuster, it was able to evolve into a much larger industry and has set the precedent for streaming services to follow. 

The four elements of the diffusion of innovation theory are the innovation itself, communication channels, time, and the social system. Netflix was the innovation that started a big movement away from watching cable TV to streaming content online. Netflix wasn't an instant overnight success, it became well known and popular over time. The time in which Netflix was created was a very fortunate time for the founders as it was in between better TVs being created and at a time when rental movie stores was a very popular industry. Netflix was able to do what was popular and then take it to the next level.