...Netflix vs. Redbox Assignment 1. Netflix: The target segment of Netflix is frequent users. Netflix offers customers an ever-expanding collection of TV and movie titles. The pricing range of the subscriptions varies depending on the type of plan. All plans will allow customers receive a certain amount of DVDs every month. So it is suitable to the frequent users, who may watch the movies regularly every month. They do not need to pay the money, which is related to the number of movie they borrow. And they are given the capability of renting as many movies as they can in a month for a fixed subscription fee. It may reduce their cost. In additional, for frequent users, they may frequently go out for the movies. So it is more convenient for them to rent Netflix’s movies, most of which are available on the Internet. Redbox: The target segment of Redbox is casual users. Unlike Netflix, Redbox charges the customers based on the number of movies they borrow, just as the traditional fee. As a result, if customer does not always watch movies, it may be the best way to choose Redbox. Netflix’s monthly subscription is too much for them, as they will be charged even if they do not watch the movies. Because such customers will only borrow a small amount of movie occasionally, it is cheaper for them to pay the money separately. And it is also very convenient for them to borrow and return the movies due to the Redbox’s kiosks, which can be found everywhere. 2. Netflix’s advantage:...
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...Also, torrenting or pirating movies is growing increasingly popular. Buyers have a strong presence in this industry mainly because they are picky about how much they will pay to rent or stream a movie. With the amount of substitutes and their pickiness, they make this industry more competitive than what it may seem. Suppliers can make this industry very difficult because there is so much red tape in the movie industry. There are copyrights and restrictions on everything. This gives the supplier a lot of leverage and for the most part, they know that they can demand a price of just about anything. I see the potential and threat of new entrants being moderate to strong. First off; many customers have their loyalties whether it be to Netflix, Redbox or a local hometown movie rental. Secondly; pricing, availability and quality are all key factors. Lastly you have to have a large sum of money upfront in order to get the ball rolling. As I mentioned prior, gaining rights from movie companies is not cheap. The rivalry among the competitors is rather intense as they are battling for the best prices, biggest variety, quickest accessibility for the customer, and quality movies (HD streaming, few scratches and number of blu-rays). With the growing increases in technology and home entertainment, there are major forces pushing for change in the movie rental industry. In addition to this; we now live in a world where people want something and they want it...
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...movie rental needs has suffered a significant loss in revenue to the rise of RedBox and Netflix. The competitive advantage offered by the two companies has tapped into Blockbuster’s market and cause a lack of blockbuster for the company. Since 2009 the company has continue to reported decreased revenue and profits against its competitors. In 2010 the company filed bankruptcy and has since then implemented new services and products similar to its competitors, however, customer’s still prefer RedBox and/or Netflix. Once upon a time on a Friday night after work, you were looking to go home, relax, and watch a good movie. You come up on a big blue sign with yellow lettering, and think, “I’LL RUN TO BLOCKBUSTER!” Today, we’re looking for the nearest RedBox, or browsing Netflix for a good flick. There was time when families would take a trip to Blockbuster, order a pizza, and make it a movie night. Today, people have the luxury of not even leaving the house to find a good movie; thanks to Netflix. After a routine run to Wal-Mart, Walgreens, or Kroger’s it has become second nature to browse the RedBox, especially since the cost is only $1. But what has happened to good ol’ Blockbuster? Over the past few years Blockbuster video locations have steadily declined. Blockbuster, the once powerful source for movie and video game rental, has become nonexistent in some areas. Due to the rise of Netflix and RedBox, Blockbuster has experienced a decline in sales, continues to close locations...
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...Netflix Fights to Stay Ahead of a Rapidly Changing Market A. Redbox will threaten the movie rental by mail business. Redbox has grown to over 36,000 kiosks nationwide and claim that “68 percent of the U.S. population lives within a 5 minute drive of a Redbox kiosk” (Ferrell and Hartline, 2014, p.475). The kiosks are convenient to many customers for them pick up and return their rentals while out shopping at places they already frequent like grocery stores and pharmacies. Redbox also offers new release movies for rental sooner than Netflix currently does. Unless Netflix figures out a way to take on Redbox head-to-head, Redbox will remain the leader in DVD / Blue-Ray movie rentals. Other competing organizations that offer streaming media like Hulu and Aereo will offer some level of competition to Netflix’s bread and butter part of the business. However, with Netflix currently owning the lion’s share of the market and continues to lock-in agreements with providers such as Verizon, Netflix will continue to remain the market leader as long as they stay ahead of the competition through new innovations, offerings, and competitive pricing as a result of the increase in competition. B. Rebox’s growth could be the only organization that could force Netflix to alter its current by-mail strategy. Netflix will need to eventually decide if they should focus solely on just being a video streaming business, their current strength, or to compete directly with Redbox in the movie rental business...
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...Netflix Domestic Strategy Prepared for: Netflix Senior Management Reed Hastings, Co-Founder and CEO Kelly Bennett, Chief Marketing Officer Jonathan Friedland, Chief Communications Officer Bill Holmes, Chief Business Development Officer Neil Hunt, Chief Product Officer David Hyman, General Counsel Patty McCord, Chief Talent Officer Ted Sarandos, Chief Content Officer David Wells, Chief Financial Officer August 4, 2012 Through this report, our consulting team has taken the opportunity to analyze and provide recommendations for future domestic business strategy of Netflix. As expressed in the company’s founder’s conference last October, we would like to help you build upon your stated vision for the future including: • Becoming the best global entertainment distribution service • Licensing entertainment content around the world • Creating markets that are accessible to film makers • Helping content creators around the world to find a global audience We would also like to follow the nine values you use to guide your company: • Judgment • Productivity • Creativity • Intelligence • Honesty • Communication • Selflessness • Reliability • Passion In this report, we will address the following issues to provide a foundation for overcoming Netflix’s domestic challenges: I. Competitive Dynamics A. Key Competitors B. Competitive Response II. Strategic Management/Competitive Issues A. Key Strategic Issues B. Strategic...
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...Executive Summary Currently, Redbox does not have a mission or vision statement out for the public. This is a problem since the mission and vision statements are an important aspect of a company. However, in their 2010 annual report, I did find out that one of the goals of Redbox is to be able to achieve satisfactory availability rates to meet consumer demand while also maximizing Redbox’s margins. Nonetheless, Redbox should provide its customers and the public with mission and vision statements. My recommended mission statement can be found in Exhibit 1. Redbox has been successful renting DVDs ”on-the-go”, however, just like the convenience drove customers to Redbox kiosks, new technology can drive them away. The upsurge of online streaming seems to be the new “thing”. In order to combat this problem Redbox needs to develop a streaming business that can compete with the likes of Netflix, Apple and other rivals (Redbox rivals can be found in Exhibit 2). If Redbox can accomplish this task, it will give Redbox further growth expansions providing them with a competitive advantage. Situation Synopsis (extended SWOT) A quick SWOT Analysis lays out Redbox’s standing: Strengths Weaknesses Cheap Rental Prices $1.20+tax Limited only to New DVD Releases More clients because of No membership fees Maintaining physical stock Various Locations Poor advertising 1st of its kind Limited functionality of machines Offers free DVD promotion rental 28-day delay of new...
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...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 report concludes with recommendations designed to assist redbox in more effectively reaching its 18-24 year old target market. 1|Page Industry Size: Revenue & Product...
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...Article Review #1 2/16/12 Article Summary I am currently a Netflix subscriber and was very interested by an article in the Los Angeles Times on 2/7/12 about Verizon and Redbox teaming up to start a similar but “improved service”. I also am somewhat impatient and enjoy being able to jump in the car and grab a movie instead of the waiting two days to receive it in the mail. In the article they discuss the pros and cons of Verizon and Redbox joining this business and how it will affect Netflix; and what Netflix counter will be to stay on top in the field. Netflix sees its DVD delivery service as “dying”, they have made it clear they are not investing anymore money in the service but they will now focus more on streaming. Streaming is extremely convenient and user friendly! The article does not go into the greatness of steaming but makes it very clear that Netflix is 100% correct in their focuses for the future. Netflix can be watched on multiple gaming devices, smart phone and of course laptops too and that makes it more marketable. They also have rights to certain movies that others trying to get involved in the field will not be able to use; this makes it hard for their competitors. They offer more than 10,000 movies and series though their streaming service alone. Netflix can be streamed internationally. Redbox’s parent company Coinstar Inc. has teamed up with Verizon; both companies have a large presence in each of their own areas of business and will...
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... Redbox and Netflix are two competing video streaming companies. Redbox however compared to Netflix, is a small video retailer in the United States. Its entry into the market posed both positive and negative challenges to Netflix. It plays an important role in the development of Netflix’s strategic plans. This is because it works towards outdoing its bigger rivals in the video streaming industry Netflix being one of them. Through competition with Redbox, Netflix will be able to come up with competition strategies that will enable it to counter strategies that Redbox is implementing in order to gain a wider market. In terms of pricing strategies, Netflix will be able to come up with good and favorable pricing strategies. When Redbox, entered into the video streaming market, it lowered its prices for video products so as to gain a larger market. This provides a platform for Netflix to look into pricing so that it can maintain the current consumer market and be able to beat the marketing strategies that Redbox is implementing. This is because Redbox is becoming is becoming a challenge and therefore, Netflix will do market research in order to realize it strengths and weaknesses. Through the evaluation of weaknesses, Netflix will be able to evaluate the threat that Redbox is posing to it and hence come up with ways of dealing with the identified threats and identify the opportunities that are there in the video streaming industry. Redbox is threading to the future of Netflix because...
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...Paul Noonan Micky Thakkar Carlton Graham Dave Hasty Christina Carroll Busgr 567, Marketing Strategy Dr. Joyce Hunter May 25, 2010 Case Study: Blockbuster, Inc. [pic] Table of Contents: Dave Hasty Mission Statement, History of Blockbuster, pg. 3-5 Carlton Graham/Paul Noonan Marketing Strategy, 5-6 Marketing Mix, 6 Target Markets, 6-7 Micky Thakkar Marketing Objectives and Goals 7-10 Paul Noonan/Micky Thakkar Advertising and Promotion Strategies 10-13 Environmental Analysis and Porter Analysis 13-15 Christina Carroll SWOTs 15-19 Netflix SWOT Redbox SWOT Blockbuster SWOT Competitive Advantage Strategic Focus Paul Noonan Financials 19-20 Future Trends 20 Recommendations 20-22 All Questions 22-25 Bibliography 26 Compiled by Paul Noonan The History of Blockbuster Inc. Blockbuster’s mission statement is “To be the global leader in rentable home entertainment by providing outstanding service, selection, convenience and value.” Blockbuster is an American based chain of retail stores renting DVD, Blu Ray, and video games. They have over 9,000 locations in the US and 25 other countries worldwide. It is headquartered in the Renaissance Tower located in Dallas, Texas. The first store was opened in Dallas, Texas 1985 by David Cook. Cook had started a company called Cook Data Services Inc. in 1982 selling software to Texas’s oil and gas industries.[i] When the industry went flat Cook was searching for another source...
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...2013 Executive Summary: Problem Statement – Overall Redbox has been happy with their success. However the problem is that there is a gradual shift to digital media, away from DVD’s and Redbox must be ready with innovative changes. Currently they do not have an online interface or platform where users can stream movies directly. Redbox also has a very limited amount of movies per Kios (200). If customers wanted movies that were from the 1990’s or 1980’s, it was harder for them to obtain. In a way, Redbox was limited in terms of their range. Also due to their contractual agreements with Universal Studio, Warner Bors, 20th Century Fox, etc., they had to sell their movie only 30 to 45 days after the release of the movie. Redbox is able to keep track of the number of each title in each kiosk; however, when a title is completely unavailable at a kiosk, the company hires field staff to move movies around and fill in empty slots; which seems a little inefficient and an unnecessary cost. The biggest expense Redbox incurs is content acquisition and licensing agreement. The company spends hundreds of millions of dollars on license agreements with each movie studio. Therefore the question to be asked is “How to reduce the company’s content acquisition cost?” Summary of Facts – 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...
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...as influential as Netflix, building a service from the ground up that supports millions of different viewing opportunities for its subscribers in a variety of markets. Netflix however is not immune to rapidly changing marketplace in which it shares strong competitive competition. Multiple companies including; Apple, Amazon, Hulu, RedBox and others bring new options to the table for the consumer and place Netflix in the carious position to continuously rethink and develop its marketing strategies if it wishes to stay on top of the competition. This paper looks at several areas surrounding Netflix current market strategy and how it will likely fair against its competition moving forward. Along with looking at the current market strategy of the company focus will also be paid to Netflix’s past failures and success and the potential for continued success in the future. Keywords: Competition, Competitive Advantage, Marketing Strategy Netflix Case Study In 1998, Netflix CEO Reed Hasting, along with software executive Marc Randolph officially opened Netflix for business. Hasting and Randolph realized the potential opportunity and perceived growth that the DVD market would have on the US entertainment sector. Further they were able to capitalize on DVD’s smaller size, in comparison to VHS, and developed an approach to deliver the new entertainment media to consumers via rent-by-mail service. While the DVD was becoming rooted in the US market, Netflix was able to build strategic...
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...Redbox – Marketing Plan U.S.A Esther Orosz, Wiebe Poelmann, Shu K, Martin Gerzmann 2/15/2011 Redbox – Marketing Plan 1 CONTENTS 2011 1 Contents ......................................................................................................................................................................1 2 Executive Summary ....................................................................................................................................................3 3 Introduction ................................................................................................................................................................3 4 Problem Statement ......................................................................................................................................................4 5 External Analysis ........................................................................................................................................................4 5.1 Marketing Segmentation .....................................................................................................................................4 5.1.1 Geographic Segmentation ............................................................................................................................4 5.1.2 Demographic Segmentation .........................................................................................................................4 5.1.3 Pshychographic...
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...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 to see films within the first two weeks of release (37). Simmons went on to report that from those who watch movies in the first two weeks, they will then rent from Blockbuster, Hollywood Video, and Netflix (37). Redbox, in particular, has been steadily increasing its amount of rentals. Its target market, according to NPD...
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...information for more than thirty years and successfully build the management of customer relationship, acquisition would bring challenge of client management. Our team perspective: we are not in favor of Harrah’s acquiring one of its competitors. First, it’s money consuming. Harrah’s competitors are mostly leaders in gambling industry in the US. Instead of acquiring a competitor, it’s better for Hannah’s to build more casinos in major traditional markets either in the United States or in international markets. In this case, Harrah’s can manage stronger brand image and better allocate its funds. 3. Who are Netflix’s major competitors today? What strengths does Netflix have compared to their major competitors? Netflix’s major competitors are Blockbuster, Walmart, Amazon, Redbox and Verizon, Apple. Blockbuster acquired Netflix clone, FlimCaddy.com and became the major competitor in rental subscription programs from...
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