Blockbuster was the pioneer, the giant company that was established in 1985 and made the walk to the cinema superfluous. Finally you could relax in the living room, put a video chubby electrical device and watch a new movie of your choice. It cost money, and the fine imposed on the viewer not responsible he forgot to return the movie at the time was high, but Blockbuster released an entire generation tyranny of Theater Owners and introduced a new format - independence. It's not that there were independent video stores before, but the network, known to its customers the latest films, and manage inventory more efficiently and cheaper, sheep every street corner and every piece Disposable average American mall. She had good days no less than 5,000 …show more content…
From a personal interest he started looking for a replacement Blockbuster, but quickly realized that the idea of shipment problematic. The traditional tape was big and heavy , and shipping was expensive ". About that time (mid-90s) came into being a new technology - DVD Hastings, who was not afraid of adopting new technology, sent his home movie DVDs and pleased to discover that he came quickly, easily and cheaply (in the United States, mail within 24 hours is highly developed service). There was only one problem - DVDs Room only approximately 5% of homes in the United States. Relatively low demand accelerated the film studios, use technology, so that very few movies were published in the new format. Blockbuster were not concerned: "The technology is expensive, and because it has no demand - also there is no content," they said, and continued to open stores. Also fine for latecomers - increased. In 2002 came the fines to about $ 600 million, a sum which was a significant part of the revenues of the network. "Fines angered customers but the business model of the network dictated them," says Stadtnr, "They promised to have new movies because good agreements with major studios, but 70% of customers want to see them, so it takes time limited time-per-view, and fine those …show more content…
In 2003, they also begin to rent DVDs, and even offer mailing, but unlike Netflix, they are trapped physical stores. Their business model is revealed as outdated and expensive. While Netflix serves one place all the United States, supported Blockbuster stores, each of which serves a limited geographical area. Stadtnr: "The model of Netflix was web-based from the start, you could see the catalog online, choose it and get home. But there was something even more important: the model allowed to recommend the movies. Netflix has begun to recommend old movies and loved ones, the lowest cost . they do not push the newest movies like Blockbuster, but also raised the Hmodot pleasure of watching old movies. this method greatly increase profits.