In a business landscape where change is the only constant, companies that refuse to evolve risk extinction. History is littered with once-great brands—Blockbuster, Kodak, Nokia—that are failing to adapt. On the other hand, businesses like Netflix and Adobe have successfully navigated massive shifts, proving that strategic pivots can drive sustained growth, innovation, and profitability.
How did they do it? And what can businesses—big or small—learn from their ability to pivot?
Table of Contents
Netflix: From DVD Rentals to Streaming Giant
Netflix, now synonymous with streaming, wasn’t always the powerhouse it is today. Founded in 1997 as a DVD rental-by-mail service, the company faced a turning point when digital streaming disrupted traditional media consumption. The company shifted to a streaming and subscription model, and in 2007, the company launched its on-demand streaming service, fundamentally changing how people consumed content. It helped Netflix to ensure recurring revenue and eliminate the need for late fees.
By 2013, Netflix pivoted again—this time into original content production. The success of House of Cards and Orange is the New Black proved that producing exclusive content attracted and retained subscribers. As of Match 2024, Netflix’s content spending was estimated to be around $17 billion annually. As per Statista, Netflix recorded over 300 million paid subscribers worldwide as of the fourth quarter of 2024.
Lessons for Businesses
Anticipate disruption – Netflix didn’t wait for streaming to destroy DVD rentals; it embraced the future early.
Leverage data for decision-making – Viewer analytics shaped Netflix’s content strategy, reducing reliance on traditional market research.
Be bold with transformation – Moving from a DVD rental model to content production was risky but visionary.
Adobe: From Software Sales to Cloud Subscription
Adobe, the company behind Photoshop and Illustrator, was once known for selling expensive, one-time-purchase software. However, as digital businesses grew and piracy threatened software revenue, Adobe took a bold step—moving to a subscription-based model. In 2013, Adobe discontinued boxed software (like Photoshop CS6) and launched Adobe Creative Cloud, offering a subscription-based SaaS (Software as a Service) model. This pivot provided users with regular updates, cloud storage, and collaboration features.
Adobe’s annual revenue skyrocketed from $4.05 billion in 2013 to $21.51 billion in 2024, and its subscriber count surged, with over 37 million paid Creative Cloud subscribers worldwide as of 2024. The recurring revenue ensured financial stability for the company, reducing reliance on one-time software sales.
Lesson for Businesses
Shift from product sales to service-based models – Subscriptions create predictable revenue.
Enhance value through continuous innovation – Frequent updates kept users engaged and prevented them from switching to alternatives.
Adapt to customer behaviour – Adobe saw users shifting towards cloud-based collaboration and moved accordingly.
What Every Business Can Learn About Pivoting?
The ability to pivot successfully isn’t reserved for billion-dollar companies. Startups, SMEs, and traditional businesses can all take inspiration from Netflix and Adobe. Here’s how:
Listen to the Market
Both Netflix and Adobe identified shifts in consumer behaviour before they became widespread trends. Businesses must stay agile by monitoring customer preferences, industry trends, and technological advancements.
Don’t Fear Disruption—Embrace It
Rather than resisting change, companies should lead the change. Whether it’s moving from physical stores to e-commerce or adapting AI-powered tools, being proactive beats being reactive.
Test & Iterate
Before Netflix went all-in on streaming, it offered a hybrid DVD-streaming model. Adobe, too, introduced Creative Cloud alongside traditional software before fully transitioning. Businesses should experiment with changes in small, controlled phases before full-scale implementation.
Shift Business Models When Necessary
Companies should be open to rethinking how they generate revenue. Subscription models, digital services, and direct-to-consumer sales are replacing outdated models. Pivoting doesn’t mean abandoning your business—it means evolving it.
The Future Belongs to the Bold
Netflix and Adobe prove that staying relevant requires foresight, adaptability, and bold decision-making. In a rapidly evolving business environment, those who embrace change—not fight it—will lead the future. So, the next time your industry faces disruption, ask yourself: Is it time to pivot?
