Blockbuster Entertainment, Inc.

Blockbuster Entertainment, Inc. was once a highly successful and profitable brick and mortar home movie and video game rental store. At its peak in 2004, Blockbuster had up to 60,000 employees and more than 9,000 stores. The idea behind Netflix came from an unsatisfied, embarrassed customer of Blockbuster, Mr. Reed Hastings, now CEO of Netflix, paid a $40 late fee because he returned the movie Apollo 13 six weeks later (Zarafshar, 2013). He began to contemplate ingeniously about a notion to change the movie-leasing pattern into a more pioneering industry. In 1997 Netflix was started as a DVD rental-by-mail business without subscriptions. In 1999, taking a stride additional in the direction of evolving the industry, Hastings began the subscription-based business mode based on renting DVDs by mail with plans reliant on the quantity of titles taken at a time. Netflix put forward 120,000 titles for limitless monthly DVD rental with free shipping no late and per title fees. Since that time Netflix has become one of the most popular subscription services in the world, and is now valued at over $28 billion and steadily increasing. What factors contributed to the success and failure of these two companies?

The always changing world of technology creates a challenge for many older businesses that once thrived years ago. Americans along with many other countries are becoming centered around immediate gratification and in a way, lazy. Fast is better and right now wins. When Netflix came into the homes of millions, it almost seemed like the end of all other movie rental providers. A change in leadership from a recent buyout has saved Blockbuster and has placed them as a leader once again in the entertainment business. Blockbuster has a new strategic plan that seems to be working, but a look into a

Additionally these changes propelled the difficulties Blockbuster experienced which made it difficult for them to successfully grow within those situation. Blockbuster was further restricted with mounting debt they acquired over time, and with new competitors on the rise other strategies were required to meet the demands of their customers (Kuzyk, 2010). Not neglecting the fact that Blockbuster made relentless efforts to increase their networks a declining market share due to reduced customer demands within its customary store fronts was evident. Blockbuster also faced challenges with a gap between rentals and their availability for sale (Davis & Higgins, 2013). At this time competitors provided their customers with access to order movies

How could a company that was built into a multibillion dollar empire fail less than two decades later? Blockbuster Entertainment started with one store in Dallas in 1985 and rose up to become the dominant force in the movie rental industry. They were acquired by Viacom, at the pinnacle of their success, for $8.4 billion in 1994 and were in bankruptcy by 2010. A series of blunders by upper management, highlighted by a lack of strategic vision, led to Blockbuster’s rapid decline and ultimate failure.

If I could have helped Blockbuster I would have expanded in other types of companies like Family video bringing in a pizzeria, or real-estate- maybe an arcade or something something to generate other customers to keep the main business afloat. Maybe do video streaming like Netflix as well. But it didn’t seem like they wanted to adapt to change or innovation. That was their main downfall. So I would have pushed innovation on them to try new businesses and ideas for blockbuster

Blockbuster and Neflix are two companies that are in the home video rental market, which accomplished enormously contrasting effects. While, Neflix enormously heightened its company value, Blockbuster lost it’s powerful and influential market position, and in 2010 slipped into bankruptcy. With this paper I will attempt to discuss important insight into the many aspects of Blockbuster and Netflix, and other media entertainment industries, including each company’s success and failure. In this paper, you will find that on average Blockbuster’s did not have a substantial impact on it company value nor success, while Netflix’s, on the other hand, increased its company value and success. Furthermore, Netflix’s in the areas of service enhancement

When you have money no idea is truly dead. An investment group of billionaires could revitalize anything. They could easily afford to pump Blockbuster back up like a dead fish. The concept doesn't seem to far fetched when you think about it. Everyone loves a good comeback story and an iconic brand. Blockbuster is the perfect combination. Which is why it's is currently owned by someone.

With this paper I am proposing to discuss Blockbuster’s issues and/or problems, as far as, gaining and retaining profitability, and well needed success. Why in 2010 the company’s losses continued to rise? And the reason, they were eventually required to enter Chapter Eleven bankruptcy in Sept-10. In addition to, Netflix, which at the time had over 17 million subscribers in 2010, gaining profits, and a climbing stock price that exceeded $300 by June-2011, which was because of them introducing its own entertainment streaming service as a part of its DVD service for a low-cost of $10, charged monthly. However, this case study is

This case represents an analysis of the DVD rental business and specifically how Netflix positioned itself in the market and the direction of the industry as a whole. Several tools were utilized to help analyze Netflix. Case facts were considered in addition to possible future strategy in relation to market position.

Blockbuster opened in 1985 and in its “first 20 years of business, the movie rental giant opened 9.100 stores in 25 countries” (Laudon, 2007, p. 121).   Netflix launched in 1998 using a new business model and became Blockbusters biggest threat. The paradigm shift in the rental industry from having to travel to a store and rent a movie to being able to have a movie delivered to your mailbox changed the way people think about media entertainment. The next shift will be having the technology to download movies and shows directly to a television.

The case discusses the success of Netflix on revolutionizing the video rental business. It clearly shows the company’s ability on utilizing superior customer service, emerging technologies, strategic partnerships, empowerment of employees and creating an ever growing subscriber base to transform the traditional video rental in to a 21st century on-demand concept. Video-on-Demand is the recent video streaming technology where pay-per-view programming merges with Internet downloading. Netflix, an online subscription-based DVD rental company, entered the video industry with disruptive technology of offering online video rental while the incumbent competitors like Blockbuster were offering retail rentals. The

If everything works out perfectly, it would be nice to see the product of the combination of Blockbuster and Circuit City. However, in reality, things just would not work that way, especially in this modern era where everything in the market changes rapidly, and nobody can predict what is going to happen next. Even in this situation, Blockbuster still did a good job by analysing the market carefully and making their decision wisely. At the time when the offer is announced to the public, many opinions from analysts flooded in, with majority agreeing that the offer is bad (Jacobs and Paul, 2008). They are lucky enough to found the problems before it is too late. Although Keyes had a wonderful envision of the future of the affiliation, he decided to give up on the offer and take the safe route in order to prevent their company from falling into a black

From then on, Netflix seemed to be increasing while Blockbuster continued to decrease because Netflix was stealing Blockbuster’s consumer market. Figure 2 displays Netflix’s and Blockbuster’s revenue, where initially Blockbuster’s revenue was way greater than Netflix’s revenue. While Netflix made a steady rate of income, Blockbuster had steady losses and eventually a great drop in income, which lead to bankruptcy. Economically speaking, Blockbuster had to shut down because its marginal revenue was lower than its average total costs. Every time the business sold their product, it made losses because the revenue never covered its cost of operating and production costs. Among the five fundamental questions discussed in chapter two, how a product will be produced is vital. Firms want to minimize the cost of making an output. Thus, Blockbuster used efficient ways to produce its movies and games by outsourcing and reduced staffing (WordPress). However, a major expense for Blockbuster was rent for the location of its stores and wages for its employees, which Netflix did not have to worry about because it was an online service. Therefore,

Has e-marketing and the use of the internet hurt Blockbuster's dominance in the movie rental business and if it has what will they have to change in their business plan to regain their market shares? This case has studied the influence of new technologies for delivering movie rentals along with downloading movies directly to your television at home without a customer even getting off their couch. It also examines the impact DVD recorders are going to have on Blockbusters main products like DVD players and VCR's. The case talks about the threats these new innovations are going to have on Blockbusters business potential. Along with what Blockbuster has done to compete with their new competitors like Wal-Mart and Netflix. With the internet

In 1985, David Cook opened the first Blockbuster store in Dallas, Texas. Blockbuster initially began as a competitor to smaller mom-and-pop video stores, offering a larger selection of movie titles customized to each store’s local customer demographic along with better prices. In order for Blockbuster to dominate the home video rental market in the United States, there needed to be a substantial investment in retail stores and inventory so that customers could conveniently find a store and movies they desired to rent. Under CEO Wayne Huizenga, Blockbuster aggressively began to grow across the nation, both organically by franchising and through the acquisition of key competitors (Dyer, Godfrey, Jensen, & Bryce, Page C-93). By growing rapidly Blockbuster was quickly able to implement its business strategy, allowing customers a convenient way to find movie titles they wanted to rent. Blockbuster’s revenue model a quick