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Netflix and Apple Lead Disruption of Entertainment Industry
29 Apr 2011 EDT - CNBC.com
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The entertainment industry doesn't always handle disruption well.

When digital storage and distribution hit the music industry, labels ferociously resisted the move, suffering tremendous losses as a result.

Now, the film, television and videogame industries are all facing seismic shifts in their fields — and are trying to find ways to avoid the same fate while using very similar tactics.

For Hollywood studios, there is no more disruptive force these days than Netflix . What started as an online movie rental service has completely changed the way people view home entertainment.

Blockbuster basically ignored the company when it launched and began to grow. As a result, it is now a shadow of its former self. (Once 4,000 locations strong, the chain was sold recently in a bankruptcy auction to Dish Network for a mere $320 million.)

Netflix, of course, has shifted focus away from movies-by-mail to a streaming model , and it's growing fast. The NPD Group reports that 61 percent of all movies distributed over the Internet are viewed via Netflix. That's nearly eight times the number boasted by Comcast , the number two provider and majority owner of NBCUniversal, publisher of this website.

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