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What Was Netflix Attending To? Teaching the Behavioral Theory of the Firm

Learning objectives

The Question Under the Question

The Firm as a Coalition, Not a Calculator

Aspiration, the Kink, and the Scarce Resource of Attention

Worked Example: Qwikster, Reasoned Through

Drift Alert: The Misreadings

Expert Depth: The Attention-Based View as a Structural Theory

Practice: Script the Turns

Go Further

Quiz

Quiz: Core Concepts of Behavioral Theory

Quiz: Charting the Aspiration Kink

Quiz: Analyzing Qwikster through Attention Structure

Quiz: Identifying Hubris vs. Attention Framings

Quiz: Structural Theory and Expert Depth

Completion

Survey: Mastery of the Behavioral Theory Core Concepts

Survey: Application of the Aspiration Kink in Pedagogy

In 2011, Netflix announced 'Qwikster,' a highly controversial move to split its DVD and streaming services. It was widely panned as a massive strategic blunder driven by executive hubris.

In 2011, Netflix announced 'Qwikster,' a highly controversial move to split its DVD and streaming services. It was widely panned as a massive strategic blunder driven by executive hubris. But what if we're looking at it all wrong? Welcome to 'Reframing Netflix Qwikster: Behavioral Theory and the Attention Problem.' This course takes you beyond the superficial 'bad decision' narrative and dives deep into the Behavioral Theory of the Firm. You will learn to view organizations not as perfectly rational calculators, but as complex coalitions of individuals with bounded rationality and limited attention. By dissecting the Qwikster debacle through the lens of the Attention-Based View, you will uncover the structural and cognitive mechanisms that drive real-world corporate strategy. We will explore core concepts like the 'Aspiration Kink,' the scarcity of executive attention, and how structural theories explain organizational drift. Whether you are a business strategy instructor looking for a compelling pedagogical tool, a management student, or a corporate leader aiming to understand how attention shapes decision-making, this course offers a profound shift in perspective. Through worked examples, expert depth modules, and practical scripting exercises, you will master the art of analyzing corporate missteps and learn how to apply behavioral theory to modern strategic challenges. Join us to reframe one of tech's most infamous pivots and sharpen your strategic analytical skills.

Reframing Netflix Qwikster: Behavioral Theory and the Attention Problem

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            <p>The 2011 Netflix Qwikster decision is frequently mischaracterized in strategy classrooms as a mere symptom of executive hubris or a straightforward failure in market forecasting. However, for case-method instructors and scholars refreshing the doctoral strategy canon, this pivotal event offers a far more rigorous pedagogical opportunity. By examining the Qwikster case through the Behavioral Theory of the Firm, we can deconstruct the organization not as a monolithic, rational calculator, but as a complex coalition of competing interests. This course reframes the standard narrative, shifting the analytical focus toward the structural allocation of a critically scarce resource: managerial attention. Through this lens, the strategic misstep becomes a profound illustration of how organizational structures and shifting priorities dictate what a firm attends to—and what it systematically ignores.</p>

<p>Throughout this curriculum, participants will systematically unpack the underlying mechanics of organizational decision-making to elevate classroom discourse. The modules dissect core theoretical concepts, including the "aspiration kink" and the Attention-Based View as a structural theory, providing a robust framework for analyzing strategic drift. Instructors will acquire precise pedagogical tools to script classroom turns, guiding students past superficial misreadings of the case and toward a deeper understanding of behavioral strategy. By integrating these advanced theoretical constructs with practical case-method applications, this course equips strategy educators and advanced practitioners with the analytical depth required to teach the Qwikster case as a masterclass in organizational behavior and the limits of strategic attention.</p>
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