Osborne effect

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Binge Times: Inside Hollywood's Furious Billion-Dollar Battle to Take Down Netflix by Dade Hayes, Dawn Chmielewski

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The tech industry generally is obsessed with avoiding the “Osborne effect,” in which customers postpone buying a current product as they wait for a new, better model to arrive. It’s a term that was coined after the bankruptcy of the Osborne Computer Corporation, a pioneering maker of a briefcase-sized personal computer, which saw its sales collapse as word leaked of a next-generation device with a bigger screen and enhanced capabilities. That 1983 bankruptcy serves as an enduring cautionary tale for Silicon Valley tech companies to remain mum about a new device until it’s ready to hit store shelves. At Apple, the Osborne effect is gospel. Hollywood, by contrast, relies on a series of teases building in a crescendo toward launch.

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