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    Barte SM Task3 Bse3a

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    rosemarie barte
    Blockbuster was once the dominant player in the video rental market with over 27% of the US market share and 6,500 stores. However, Reed Hastings proposed a partnership between Netflix and Blockbuster in 2000 that was rejected. Netflix then launched in 1997 as a DVD-by-mail rental service without late fees, gaining popularity. As Netflix and other streaming services innovated their digital offerings, Blockbuster failed to adapt and focused on their brick-and-mortar stores with outdated technology and business models. This caused Blockbuster to lose much of its market share and eventually go out of business while Netflix and other streaming competitors thrived.

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    Barte SM Task3 Bse3a

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    rosemarie barte
    36 views2 pages
    Blockbuster was once the dominant player in the video rental market with over 27% of the US market share and 6,500 stores. However, Reed Hastings proposed a partnership between Netflix and Blockbuster in 2000 that was rejected. Netflix then launched in 1997 as a DVD-by-mail rental service without late fees, gaining popularity. As Netflix and other streaming services innovated their digital offerings, Blockbuster failed to adapt and focused on their brick-and-mortar stores with outdated technology and business models. This caused Blockbuster to lose much of its market share and eventually go out of business while Netflix and other streaming competitors thrived.

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    Blockbuster was once the dominant player in the video rental market with over 27% of the US market share and 6,500 stores. However, Reed Hastings proposed a partnership between Netflix and Blockbuster in 2000 that was rejected. Netflix then launched in 1997 as a DVD-by-mail rental service without late fees, gaining popularity. As Netflix and other streaming services innovated their digital offerings, Blockbuster failed to adapt and focused on their brick-and-mortar stores with outdated technology and business models. This caused Blockbuster to lose much of its market share and eventually go out of business while Netflix and other streaming competitors thrived.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36 views2 pages

    Barte SM Task3 Bse3a

    Uploaded by

    rosemarie barte
    Blockbuster was once the dominant player in the video rental market with over 27% of the US market share and 6,500 stores. However, Reed Hastings proposed a partnership between Netflix and Blockbuster in 2000 that was rejected. Netflix then launched in 1997 as a DVD-by-mail rental service without late fees, gaining popularity. As Netflix and other streaming services innovated their digital offerings, Blockbuster failed to adapt and focused on their brick-and-mortar stores with outdated technology and business models. This caused Blockbuster to lose much of its market share and eventually go out of business while Netflix and other streaming competitors thrived.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    BARTE, ROSEMARIE FE C. MR. VIRGILIO G.

    BULATAO
    STRATEGIC MANAGEMENT BSE 3A

    Assessment Task 3

    BLOCKBUSTER COMPANY

    Blockbuster Inc. is a leader in the field of video and video disk rental. With
    approximately 27 percent of the U.S. market share, Blockbuster operates about 6,500
    video stores, serving more than 87 million customers in the United States, its territories,
    and 25 other nations. In 2000, Reed Hastings, the founder of a fledgling company called
    Netflix, flew to Dallas to propose a partnership to Blockbuster CEO John Antioco and
    his team.  The idea was that Netflix would run Blockbuster’s brand online and Antioco’s
    firm would promote Netflix in its stores.  Hastings got laughed out of the room.
    Blockbuster and its new boss, John Antioco, focused on brick-and-mortar video
    stores, technological innovations meant that competition was on the rise. In 1997, Reed
    Hastings founded Netflix, a DVD-by-mail rental service at the time, in part after being
    frustrated with a $40 late fee from Blockbuster.
    There's a better way to rent movies. Go to Netflix.com, make a list of the movies
    you want to see, and in about one business day you'll get three DVDs. Keep them as
    long as you want, without late fees. Then, when you're done, look: prepaid envelopes.
    Return one and they'll send you another movie from your list. Netflix. All the movies you
    want, 20 bucks a month, and no late fees.
    They were too busy making money in their video stores to imagine a time when
    people would no longer want or need them. And in a bid to rescue their business, their
    answer at the time was to fight fire with fire. At one point they even opened up rental
    kiosks, a little bit like a vending machine, but all of these attempts were based on either
    outdated technology or outdated business models, whereas Netflix at the time, they did
    the opposite; they streamlined, they were able to see the future of video rentals and
    then innovate for that future. Blockbuster, they didn't seem to understand how the next
    generation, particularly millennials, who grew up in a world without hard-copy media like
    DVDs and CDs, how they would react to video-on-demand as technology improved.
    And that's why Netflix, Amazon Prime, YouTube, and Hulu, they're still all in business,
    whilst Blockbuster got left behind.

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