During the 80s and 90s, Blockbuster dominated the US home video rental market. However, the emergence of Netflix in 1997 with its ‘rental by mail’ model challenged Blockbuster’s business model (and market dominance). Blockbuster’s market position was further weakened when Netflix began to stream video content directly to consumers’ computers.
You should specifically address the role of technological diffusion, first movers and followers, and innovation.
In addition, please consider whether Netflix will continue to remain as the dominant online streaming provider in the US?