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Netflix's DVD operation fuelling transformation

It maintains profitability of its DVD-by-mail business as it grows its streaming service

Netflix's evolution has become an example of how companies can adapt, tapping their legacy businesses to fuel growth in new areas as the ground underneath them shifts.

Fremont, California

IT WAS just past sunrise on an early-spring morning at Netflix's DVD operations here, where metallic arms whirred in a giant glass box and rolling carts holding millions of DVDs lined the walls. The company's iconic red envelopes buzzed through an assembly line at the