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. There was a time a decade ago when the movie and music stores were crowded with music lovers. But presently such music stores have faded away. While theatrical, subscription streaming and video on demand gained a significant share in the past 5 years. The DVD …show more content…
This is because consumers have moved to digital subscriptions. If a kiosk is closer, a customer would still prefer online streaming since it provides an access to a wide variety of content rather than a single DVD. The decline of Redbox’s revenue and kiosks is shown below. Source: Televisory’s Research Identically, the downfall of the Transworld Entertainment Corporation, a physical subscription based company is represented in the below chart. Source: Televisory’s …show more content…
and several new and small entrants like gaana.com, Wynk, SoundCloud, Amazon Prime among others. Most of these players registered an increase in the number of free users. However, paid users remained considerably low, for instance, Pandora Media Inc. has only 25% paying members, while few others have lesser paid subscribers. This is because consumers have various options to download music and videos illegally. The piracy in physical or digital format has always been the biggest concern for music and movie rental and retail chain stores. According to the data (www.theguardian.com), 95% of the music and video available online is downloaded illegally. Although, few companies such as Netflix with around 90% paid users represents better EBITDA