Business

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Video rental industry Definition: Branch of the entertainment industry that engages in renting prerecorded video material for home and personal viewing Significance: After starting in 1979 with a single retail outlet in Los Angeles, the video rental industry boomed during the 1980’s and became a fixture in consumers’ spending during the 1990’s, grossing an average of $1 billion yearly. With the arrival of digital versatile discs (DVDs) and the Internet during the 1990’s, the industry experienced a period of increasing technological sophistication that has led to the creation and reinvention of new business models. Then the new business model revolutionized the industry. In 1999, Netflix began renting DVDs through the mail for flat…show more content…
Netflix understands that different customers and prospects have different needs. While working to solve for customer needs, Netflix also built an ubiquitous platform for delivering premium video content. Marketing Takeaway: In a world of inbound marketing, it is important to create this same type of distribution ubiquity with marketing content. For example, is your website usable on a smart phone? Prospects want to interact with your business in different ways so it is critical you provide these opportunities. 2. Market a Minimum Viable Product - Netflix was a DVD-by-mail business until it made the bold decision to start streaming video content. However, when the Netflix started its streaming service, it wasn't full of the same content that was available via mail. Instead, it was only a small portion of its content, but that didn't stop the company from actively promoting it to new and existing users. Marketing Takeaway: It is easy to drop an idea or a campaign because it isn't "ready." Netflix has taught us that "ready," really, never happens: many people are still not satisfied with the content available through their streaming video service. However, this hasn't stopped Netflix from meeting and exceeding its goals as a company. Marketers should follow Netflix's example and release ideas early and continue to improve upon them overtime. 3. Give Prospects What They Don't Know They Want - When Netflix began streaming videos, their

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