The business and marketing world is a very risky and difficult career. You don’t know what decisions can drastically change your entire company. I will be talking about the fact that Gamestop can possibly go down the same hill as BlockBuster. Now a days, everyone is always talking about the new video games and how they are willing to wait outside of the store until the game gets released. The good thing is that with all of the new technology, they won’t have to suffer the long waits.
The availability of movie rentals has taken a huge leap after blockbuster went bankrupt in 2010 (Satell, 2014, p.1). The novelty “Netflix” became a hit after Blockbuster went under. But the huge hit that sparked the consumer’s attention was the creation of “Redbox” in 2002 when McDonalds added Redbox to their LLC to improve the convenience of their customers. The concept of convenience has taken a huge leap in the past decade because of the huge developments in technology. The advancements in technology has also made brick and mortar stores either start to go bankrupt, like blockbuster, or has made the company create an online branch to their business.
In Claire Atkinson’s article “Movie Theaters Fight Streaming by Assaulting the Senses,” Atkinson reveals how movie theaters would most likely be in the future. The article was mostly about how some movie theaters operate and a couple threats movie theaters could face. Atkinson states that “The summer of 2017 was Hollywood's worst in a decade.” When movies aren’t doing well, movie theaters have to figure out how to get their customers back. Without customers they make no money.
The reason Blockbuster failed to grow in this new economy is because they failed to rebrand themselves according to the rules of this new experience economy, which was first predicted by B. Joseph Pine II and James H. Gilmore in their book: The Experience Economy: Work is Theater & Every Business a Stage. Blockbuster Video failed because they failed to remain relevant. Yes, I am aware of Sling. But Dish Network bought Blockbuster Video, which means they bought the logo. They can use that logo to open a restaurant that competes with Denny's, but that doesn't make it the reincarnation of Blockbuster Video.
In 2002 a new innovation was spreading and it its wake was the death of every Blockbuster movie rental store (Spangler, 2016). Redbox machines first popped up at McDonald's locations with a lot of foot traffic (Pomerantz, 2009). Many people could not ignore the striking red and the new innovative, the convenience of the product that Redbox provided. The generation of children of today may not get the Blockbuster experience but for them but the joy of watching the movies are still the same Redbox in the simplest terms is a vending machine for movies. You pick, pay, watch and then return.
The transformation of music and movie retail and rental stores Technology has changed the way several businesses operate. This disrupted certain industries and changed business models. Thus, businesses had no choice but to adapt to the transformation in order to survive, which in turn changed customer preferences. For instance, since the introduction of mobile phones, pagers became obsolete. Likewise, DVDs and CDs rapidly faded away with the onset of torrents and digital streaming.
Netflix, a self-proclaimed “world’s leading internet TV service” has seen many ups and downs since its inception in 1997 (Fernández-Manzano, Neira, & Clares-Gavilán, 2016). Netflix has become a key gatekeeper for the distribution of movies (Frey, 2016). The foundation of the company was based on the innovative plan to allow movie lovers the opportunity to rent movies, have them delivered to their home with no associated due dates or late fees (Parnell, 2014). The very early years of the company brought some rough patches. Accroding to Parnell (2014), Netflix reported a staggering loss of $29.8 million dollars in 1999.
When Kyle first started high school Kyle remembered how easy it was to copyright. Why go to the movies on the release day, when he can get the movie for free a week later? Kyle’s not a movie lover, he barely watches movies, but if he did he would get them for free. It’s so easy these days to watch movies, there are websites all over the internet such as, freestreamingmovies.com, topmoviesonline.cc, and housemovie.cc. These don’t even require the person to download anything; they are sites anyone can stream.
Netflix has taken over the world. Everyone from children like the 7 year old girls I babysit, to my Grandma utilizes this website as a form of entertainment on a regular basis. Sidneyeve Matrix is a teacher at Queen’s University and teaches media, marketing and mass communication. She’s had digital media and pop culture research published by Critical Survey, Ethnologies, Topia, Storytelling, Animation, and CCL/LCJ. One of the articles she has written is titled The Netflix Effect: Teens, Binge Watching, and On-Demand Digital Media Trends and demonstrates some issues with the growing popularity of binge watching.
But then there were many changes in video rental market from which the biggest change was from store based rental to online video rental which was started by a California based company Netflix in 1999, blockbuster management ignored the competition and continued selling DVD rental in store and charging late fees for rental. Blockbuster decided to come into online DVD rental service in august 2004 by the time Netflix had already taken over the market in the past 7 years because online DVD rental was easy to access and return and on top of that Netflix did not charged customers late fees, because of which customers got attracted to Netflix then to blockbuster. Starting as early as 1990, Blockbuster should have started closing down its stores that were underperforming and should have set up kiosks in grocery stores and other public places which would have increased their profit margins. External Environment External environment is a set of conditions outside the firm that affect the firm’s performance(R, Duane, pg 6). The
Disney’s ability to change its focused demographics, create a substantial competitive advantage, manipulate the marketing mix to fit each franchise, and focus on specific strategic plans has allowed for Disney to become one of the top platforms in the world. Disney’s change from appealing to one segment of the market, which originally was focused on younger children, to focusing on appealing to many different demographics and marketing groups was achieved by using multiple marketing segments or strategies paired with implementing different marketing mixes. In Disney’s case, they changed their product or shows/movies in order to target different age groups as well as different sexes. The first change was that Disney moved the Disney Channel from premium to basic cable in order to allow for almost everyone with basic cable to have access to their shows, which Disney done by changing its place component of the
In this case, the company Blockbuster, which was known as the leading distributor for movies, became irrelevant due to the impacts. Instead the company Netflix had become the replacement and is taking full advantage of the disruptive
In addition, lower ticket costs for movies after a certain time period from release date to combat DVD competition also an opportunity to this industry. There will be more movie options and less selling out of blockbusters as its show a certain film on multiple screens at the same time, lower tickets costs could attract consumer to purchase those tickets. Moreover, introduce Customer Loyalty Programs also an opportunity to promote this industry. For instance, promote different programming such as sports, plays, musicals and more to different watchers. 3.4
Blockbuster was bought by Viacom in 1992 for $8.4 billion. Back in 2000, Netflix was just an emerging company, and offered to be sold to Blockbuster for only $50 million while Blockbuster’s worth then was $3.5 billion, but Blockbusters declined the offer to buy Netflix more than once then it reached its peak of power in 2004 with almost 9,000 global stores and 60,000 employees in the United States. By then Netflix started to grow enormously and blockbuster realized how successful Netflix is decided that Blockbuster wanted to buy Netflix now, on a conference call with Reed Hastings, Netflix CEO had mentioned Blockbuster more than 20 times, and also admitted that Blockbuster is stealing their costumers and they had not formed a plan to stop tem and also said " Blockbuster had thrown everything at us but the kitchen sink". Blockbuster responded by sending a large box the next day that contained a used kitchen sink at Hasting's office with a note from Nick shepherd , blockbuster's COO that says " Here’s your sink”. In 2008 Blockbusters launched their own by mail DVD service that Netflix has already dominating that market after that blockbusters started launching new products that were already launched before and not that attractive to costumers
The new company must know about the company that they want to compete. For the new company that want to joint in this industry must have big capital to build the cinemas with the latest of system technology of cinemas that can make the customers can choose the new company compare the others companies. They also get high of threats that can make the company cannot run stable in this industry. In this case, the customers don’t worried about the services of the MBO cinemas, because they always make the best for the customers that can make the customers feel great while watch their favourite movies.
