Blockbuster's Place in the Current Movie Rental Market Essay

1411 Words 6 Pages
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 …show more content…
It helps studio's earn more money when customers rent movies from Blockbusters then with On Demand programs. There are new technological products out there in the market, but are not as reliable as blockbuster. In every store they offer the option of customer service to guide their customers in picking the best movie rental. Plus blockbusters suggest a customer rent a movie for more then one night. All US households own at least one or two DVD players and can choose to go the store for a movie rental. Blockbusters provide customers with a deal that can give them two whole months of free movie rentals for those customers who cancel their services with Netflix or from Wal-Mart.

However, all of these strengths that Blockbuster has to offer there are always weakness lingering around. The most popular one is not responding quickly enough to the technological advantages of direct digital distributions, and waited until Netflix come into the market. Blockbuster co-brand their movie sells with the Direct T.V in which they lose some of there market shares. Another thing is that Blockbuster stores are always out of movies in stock when customers demand for them. With Netflix, TiVo, and On Demand and the idea of renting a movie from the comfort of your home, it's making it harder to convince customers to rent a movie from the store. Blockbuster finally adapted to the new technological advances to be able to compete with their competitors by also
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