...connected space, but is also confined to the single device that the movie was downloaded to thereby losing the mobility that a DVD possesses. While it addresses the demand for convenience, it encounters limitations because only 12% of this online library is available for streaming (57) Also, many customers have noticed quality flaws with video streaming making it less desirable despite heightened convenience. In regards to price, Netflix rental system requires a monthly subscription for $9.00 which includes unlimited downloads for that period. While ourage frugal Netflix offers a different approach customers, it promotes a more loyal customer than redbox and Blockbuster Express with its base. in-home streaming of movies. Netflix streaming has the advantage of being 19 | Page Movie Renters In the past few years, researchers have studied the spending habits of DVD rental users. In general, Americans who rent movies more often are more likely...
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... Netflix is today’s largest online movies rental service, with 8.7 million subscribers as of October 2008. Netflix is a online video store, which allows customers to choose from over 100,000 movies, helping customers to narrow their choices by genres, new releases, top 100, critics’ picks, award winning movies and giving customers suggestions based on movies that they have recently viewed. Netflix has become a pioneer in movie rentals making it easier for the customer to sit at the comfort of their own home and enjoy a flick. One important tool that companies may use is a S.W.O.T analysis, which evaluates the strength, weakness, opportunities and threats of an organization. Another tool that companies tend to use to help them become aware of what the customers need and wants are is surveys. Surveys can help companies analyze their current customers as well as potential ones in order to increase profits and grow overall as a company. Netflix is an Internet based movie rental company that allows consumers set up an account online and manage their movie rentals. Consumers have the option to create a list in which movies will be chosen from randomly. When chosen, this movie will be sent to the consumer’s home and when finished, the consumer may send it back in the envelope provided. Consumers may also choose to watch movies instantly through their computer at the comfort of their own home if they do not wish to wait for a movie via mail. Netlix allows consumers to choose...
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... Netflix is today’s largest online movies rental service, with 8.7 million subscribers as of October 2008. Netflix is a online video store, which allows customers to choose from over 100,000 movies, helping customers to narrow their choices by genres, new releases, top 100, critics’ picks, award winning movies and giving customers suggestions based on movies that they have recently viewed. Netflix has become a pioneer in movie rentals making it easier for the customer to sit at the comfort of their own home and enjoy a flick. One important tool that companies may use is a S.W.O.T analysis, which evaluates the strength, weakness, opportunities and threats of an organization. Another tool that companies tend to use to help them become aware of what the customers need and wants are is surveys. Surveys can help companies analyze their current customers as well as potential ones in order to increase profits and grow overall as a company. Netflix is an Internet based movie rental company that allows consumers set up an account online and manage their movie rentals. Consumers have the option to create a list in which movies will be chosen from randomly. When chosen, this movie will be sent to the consumer’s home and when finished, the consumer may send it back in the envelope provided. Consumers may also choose to watch movies instantly through their computer at the comfort of their own home if they do not wish to wait for a movie via mail. Netlix allows consumers to choose...
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...Consumer Analysis………………………………………………………….20-23 Consumer Insights………………………………………………………….24-29 Survey…………………………………………………………………………….30-31 Results……………………………………………………………………………32-41 Recommendations…………………………………………………………..42-45 Appendix I……………………………………………………………………..46-48 Appendix II………………………………………………………………….…49-55 References………………………………………………………………………56-57 Will Haven, Lucy Ross, Jessica Stephens, Lauren West & Bonnie Willard Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, redbox is currently surpassing its competitors with its number of self-service kiosks. Redbox’s growing popularity is facilitated by its physical distribution, which places the kiosk in high traffic locations such as WalMart, Kroger, McDonalds and Walgreens. Due to redbox’s standing as the progressive option for DVD rental, its decision to target the 18-24 year old demographic was evident. This demographic embodies the idea of innovation, experimentation, and dependency on technology, all of which are imperative to transform an introductory product into a nationwide brand. The following report provides secondary and primary research in order to construct an accurate glimpse of redbox and its emergent status within the 18-24 year old target market of the DVD rental industry. This report includes the description and results of eighty self-administered surveys completed by samples of the target market. Based on an analysis of these results, the...
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...Netflix is earth’s largest online DVD/Blu-Ray movie rental service, which offers more than one million subscribed members access to more than 15,000 titles. Their appeal and their success have been built on providing an ever expansive selection of DVDs, and an easy way to choose movies with fast and free USPS delivery. Netflix, Inc. is the leading DVD/ Blu-Ray rent-by-mail company on earth. Netflix has more than 1.1 million paid subscribers who typically pay a monthly fee of around $19.95 for the privilege of unlimited rentals, provided that the customer doesn’t have more than 3 discs rented out at one time. Netflix offers more than 15,000 movie titles and maintains an inventory of over 5 million discs. Netflix has also been a very popular platform for video streaming over the internet for many years now, and with support for many Netflix enabled devices like the PS3 and Roku, it continues to be an essential application for a lot of people. Netflix provides an online streaming source for not only movies but also TV shows, and miniseries. There is even a Netflix app for the iPhone and iPad. The Netflix app is available for free from iTunes and installs easily. The customer still has to pay the Netflix monthly fee however When using the Netflix app, it usually launches with a screen showing the latest movies and other content for the Netflix service, and as long as you are a Netflix subscriber you can click on any of screen images to launch the streaming playback of that...
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...in 1997 as a home movie service that used the U.S. Postal Service to deliver DVD’s to subscribers. This alternative to the local movie rental store was inspired by Reed’s own experience with extended rental and late fees typically imposed by retail movie rental outlets. While Netflix initially used a similar pricing model, the easily mailed DVD’s appealed to customers at a time when DVD players were gaining popularity and movie rental outlets were still primarily renting VHS cassettes. By 2006 Netflix achieved revenue of nearly $1 billion, offered 70,000 titles on 55 million DVD’s through its 44 distribution centers with a 90% of its subscribers receiving rentals within 1 day. As DVD’s were quickly adopted into American households and retail movie rental outlets, Netflix’s slower delivery service at the same pricing model began to offer less of a service to customers. In response Netflix shifted its business model to a no-late-fee subscription in 1999. Customers were allowed to have multiple movies at any given time and to receive up to four new movies a month. This quickly changed to unlimited rentals. They also developed their distribution network and worked with the USPS to assure quick turnaround time for movies. Netflix core competency is providing home entertainment personalized to the subscribers taste. Netflix’s proprietary recommendation system serves as a merchandising system. Through the use of an initial customer survey and the movie ratings of similar...
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...Product Reassessment: Blockbuster Dinah McGruder Professor: Andrea Benjamin Principle Of Marketing 100 12/2/2012 Product Reassessment: Blockbuster Blockbuster Corporation has to reposition them-selves in order to sustain growth in slow market and to correct past mistakes which lead to the company’s bankruptcy (Lamb, Hair, & McDaniel, 2012, p.144). The repositioning of Blockbuster has to change consumer’s mindset of believing that it is a failing entertainment company and not being able to meet the needs of consumers. Blockbuster can be repositioned from a family focused bricks-and-mortar video retail business into targeting each distinct generation with a focus on their lifestyle and customizing services to fit their interest. The different types of generations include Gen Z, Gen Y, Gen X, Baby-boomers, and Greatest Generation. Generation Z known as the internet generation have grown up using communication technology such as internet, cell, phones, and digital cameras which is mostly funded by their parents who are also knowledgeable of similar (n.a., 2010). Born around 2001 and up, this group is the youngest in which our marketing will be focused on which will call for more market studies because of them being very young. Generation Y born between 1980-2000, are also known as the Millennials make up 27.8% of the U.S. population and are very fluent in digital technology (n.a., 2010). This generation is a great target market because they are 75 million strong...
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...Jim Lappin 9/30/10 Netflix Case Business Strategy Netflix The movie industry has evolved in a variety of different ways in the past decade. Our generation is continually developing new ways in technology to watch movies as well as purchase them in a competitive consumer environment. In the past decade, Netflix has revolutionized the art of purchasing for in-home movie viewing providing an online phenomenon for the movie rental business. Netflix company strategy and business model has generated a great amount of success with their huge selection of movies, fast delivery, and excessive marketing campaign. Nevertheless, there are some issues underlying their current success that need to be dealt with for future forecasting. Current Issues/Problems Netflix has seemed to master the DVD rental segment of the movie industry. With their extensive selection based product, fast delivery, and wide subscription plan, there is no limit to their success. However, some questions arise with the subject of product differentiation. What happens when technology advances over time and the product changes? If Netflix concentrates too much on their product focus and ignores the future, then a substitute product will take over only in a matter of time. In our current business environment, product improvements are essential and changing rapidly. If Netflix does not plan out the obsolescence of DVD’s then there is no future. The recent introduction of Blu-ray technology has offered...
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...this product or service in terms of its current target market demographics using U.S. Census Data. The product/service I chose is in store movie rental and purchase. I.e. Blockbuster Videos. While DVD sales declined for a third straight year in 2009, consumer appetite for viewing movies at home remains very healthy as new physical and digital services for buying and renting movies gain in popularity. The proliferation of movie rental kiosk machines over the last year was probably the most visible sign of consumer interest in viewing movies at home. To understand the impact of rental kiosks and other movie services on household disc purchasing (DVD and Blu-ray), a survey was fielded to panelists who were identified as disc buyers and asked them to report their movie transactions from channels not tracked by scanning. This included rental transactions (both physical and digital rentals) and downloads. One finding from the study was that average disc purchasing (buy rate) among households who also rented movies on physical DVD or Blu-ray declined in 2009 at a steeper rate compared to the average for all disc buying households. The buy rate among households renting a movie on DVD or Blu-ray declined by -11% in 2009 vs. -7% among all disc buying households. Survey results indicated that 34% of these renting households had rented a movie from a kiosk. In addition, households renting from a kiosk are increasingly turning to kiosks to rent movies with 63% reporting that they had...
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...Blockbuster Video Customer Survey Kurt Dessert, Shevonne Kilpatrick, Erik Kraft, Stephanie Upchurch QNT/561 November 11, 2013 Hui Zhang/Thomas Allen Blockbuster Video Customer Survey Background and Description of Problem For many years, Blockbuster led the pack in the home movie, video, and game rental services. The company had a sound and simple business model that enabled customers to watch top-billing movies in the comforts of their living room for a fraction of what it would cost to attend the movies. In addition to providing customers with low cost video service and comfort, Blockbuster housed more than 5,000 retail stores conveniently located in every community. It was a solid business model until technology and a new competition displaced it. Team A will address the causes that led to the fall of Blockbuster such as declining profits, low adaptability, and low accessibility. Furthermore, Team A will develop a survey questionnaire to address the company’s problems and determine possible solutions for Blockbuster LLC. Blockbuster LLC, formerly Blockbuster Inc., is an American-based provider of home movie and video game rental services. Blockbuster distributes its products to customers in four ways: in-store rentals/sales, DVD-by-mail, vending machines, and online streaming (Wikinvest, 2013). The company’s in-store selection offers both new/used movies, and game rentals to include Blu-ray DVDs. Their mail service offers their customers an Internet-based subscription...
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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 monthly fees to subscribers who used the Internet to place their orders. Within two years, Netflix claimed to have enrolled more than 3.5 million subscribers in the United States alone. This model was soon copied by other companies, including Blockbuster, some of which also rented other video-based materials, such as video games. By 2007, more than 9 million households had online subscriptions to video rental services, which were generating more than one billion dollars in annual revenues. Meanwhile, the annual revenues of traditional video stores declined to about $60 million. In 2007, with the rapid increases in the number of online video downloads and new interactive services such as video on demand, many analysts predicted the imminent end...
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...The company I have chosen to do the external environment scan is Redbox. Redbox is in the movie rental business via self service kiosks. Redbox is wholly owned subsidiary of Coinstar Inc. Laws and Regulations: There are some specific laws and regulations under which the movie rental business like Redbox should operate. But due to the growing popularity of renting videos through mail, online and kiosks, most of these laws will probably have to change or modified to fit the new way of people renting and watching movies. Age of Renters – This law for who can rent specific videos follow the same guidelines set by Motion Picture Association of America. These guidelines are based on their content, language, sexuality, violence and themes. Privacy Laws – This law protects the video rental records of individuals as the records can be damaging to a person’s reputation and they cannot be disclosed without written consent. Public exhibition – Videos and DVDs are not allowed to be publicly exhibited outsides of a persons home unless for non profit use or educational purposes without a license. Federal Copyright Act – This law governs how copyrighted materials can be used and distributed. The movie studios who own copyrights are the only parties who are authorized to license sites to display movies for protection of their intellectual properties. Antitrust laws – these laws promote or maintain market competition by regulating anti-competitive conduct by prohibiting...
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...customer was once charged a $40.00 fee for not returning a movie on time. Hastings wanted to find a way of allowing customers to enjoy their favorite movies on their own time and without being charged the late fee (Copeland). In 1997 Hastings introduced Netflix to American consumers and the company has been successful ever since. He did away with due dates and extra fees, and gave customers the convenience of selecting movies from home and watching them when they wanted. Netflix, Inc. is an Internet subscription service for TV shows and movies. The company has 23.6 million members in the United States and Canada. Netflix allows its subscribers to watch unlimited TV shows and movies by streaming over the Internet to their TVs, computers, and mobile devices. Subscribers also have the option of having DVD’s shipped to their homes (Netflix Inc.). Industry The changing technological developments over the years in the in-home video entertainment industry have allowed many opportunities for movies rental companies to expand. The internet changed how customers viewed their movies. Online rentals, video streaming and on demand viewing services have entered the field and created a huge advantage over retail stores, such as Blockbuster. With consumers shift toward the internet, customers no longer needed to drive or walk to a store to look through limited-selection stock in search of a movie or to be disappointed that a movie was not on the shelf because another customer got there...
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...liked the convenience of home delivery, bargain hunters who were enthused about being able to watch many movies for an economical monthly price, and movie buffs who wanted access to a very wide selection of films. SWOT Analysis Strength: * Netflix is the world’s largest subscription service for streaming movies. It had attracted 14 million subscribers as of April 2010. * Netflix has the fastest delivery time compare with any other online DVD rental companies. As of 2010, additional improvement in Netflix’s distribution and shipping network had result in one-business-day delivery capability for 98 percent of Netflix’s subscribers * Netflix has no late fees and no due dates which eliminated the hassle of getting DVDs back to local rental stores by the designated due date * Netflix had been highly rated in online retail customer satisfaction by Nielsen Online and ForeSee/FGI Research. Weaknesses: * Netflix accesses only to internet users * Subscriber cancellations are increasing from 3,113,000 in 2006 to 6,444,000 in 2009. (To grow its subscriber base, Netflix should attract new subscribers as well as avoided cancellation.) Opportunities: * As the result of growing demand of streaming video, online movie rental is rising. Netflix has a large capacity to attract more subscribers. * Expansion into foreign markets * Price for wide-screen...
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...Cyclicality of Rental Sector 7 The Future of Media and BBI´s Brick-and-Mortar Model 7 Saturation in Kiosk Distribution Market 7 Competition 8 In-Store Rentals and Sales 9 Movie Gallery 9 Online Rentals 10 Netflix 10 Amazon 11 Apple 11 Online Viewing 11 SWOT Analysis 12 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 Summary 13 Executive Summary Movielink is the leading movie download service offering U.S customers an extensive selection of new and classic movies, foreign films, TV shows and other hard-to-find content. It is a web-based video on demand (VOD) and electronic sell-through (EST) service offering entertainment for rental or purchase. It was created in November 2002, as a joint venture ($100 million investment) of most of the big studios – Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios, Warner Bros., and others on a non-exclusive basis. While it was only available to users in the United States, it was the first company in the world to offer legally downloadable movies from major studios. Today, Movielink is a wholly-owned subsidiary of Blockbuster Inc., purchased in August 2007, a leading global provider of in-home movie and game entertainment, with approximately 7,800 stores throughout the Americas, Europe, Asia, and Australia. Clearly a hedge move by Blockbuster, whom is locked in a death spiral with the cheaper and more convenient Netflix. Netflix also launched a free movie on demand...
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