Sony And Panasonic : Video Rental Market

1106 Words5 Pages
In the mid-to-late 70s, Sony and Panasonic introduced the American public to the home video player. The initial adoption of home video technology in the United States was slow, due to high initial price tags. As prices dropped and the number of households owning home video players increased, video rental stores began to proliferate across the United States. Rental stores innovated the home video market offering customers a less expensive alternative to consuming media, and in the beginning faced no technological or competitive threats in the marketplace. In 1985, David Cook opened the first Blockbuster store in Dallas, Texas. Blockbuster initially began as a competitor to smaller mom-and-pop video stores, offering a larger selection of movie titles customized to each store’s local customer demographic along with better prices. In order for Blockbuster to dominate the home video rental market in the United States, there needed to be a substantial investment in retail stores and inventory so that customers could conveniently find a store and movies they desired to rent. Under CEO Wayne Huizenga, Blockbuster aggressively began to grow across the nation, both organically by franchising and through the acquisition of key competitors (Dyer, Godfrey, Jensen, & Bryce, Page C-93). By growing rapidly Blockbuster was quickly able to implement its business strategy, allowing customers a convenient way to find movie titles they wanted to rent. Blockbuster’s revenue model a quick

More about Sony And Panasonic : Video Rental Market

Open Document