In a year when DVD sales are falling and studios are facing major shakeups in their executive ranks the movie industry has at least one success story to cheer about: Netflix. Despite the recession the Los Gatos Calif.-based company continues to thrive and is now in a race to transition to a business model focused on streaming content online while continuing to exploit its current model based on physical DVD distribution. According to Wharton faculty Netflix has managed this balancing act deftly so far but growing competition in digital distribution means that it may not have an advantage for long.
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