A Look Back At Why Blockbuster Really Failed And Why It Didn't Have To

 

blockbuster vs netflix case study

Thus, Netflix case study Harvard can be made from the position of searching for an unoccupied place and developing a new model of service, which would be more convenient to customers. Blockbuster vs. Netflix. There were several major competitors on the market, among which was the Blockbuster network with annual revenues of up to $ 5 billion. Jul 06,  · The Netflix vs. Blockbuster saga has been told a dozen different ways, with a dozen different lenses applied. And what I’ve come to realize (and this likely won’t come as a huge surprise)is that there’s no single explanation for why Netflix succeeded where Blockbuster failed. As is the case with most things in life, it was a nuanced. Finally, NetFlix improved on Blockbuster’s lackluster service and outmoded pricing. Blockbuster charged $5 cost for each movie, and people especially hated the fees for late returns. So Hastings used a monthly subscription that allows unlimited rentals and no late fees. Instead of renting movies, the focus is on providing a convenient service.


Case-study (Netflix VS Blockbuster).pdf | Netflix | Video On Demand


The Netflix vs. Blockbuster saga has been told a dozen different ways, with a dozen different lenses applied. As is the case with most things in life, blockbuster vs netflix case study was a nuanced situation.

When Netflix launched inBlockbuster was the undisputed champion blockbuster vs netflix case study the video rental industry. So by the time Netflix showed up on the scene with its video rental-by-mail service, it appeared to be a classic case of David vs, blockbuster vs netflix case study.

At the time, Antioco considered Netflix to be small potatoes, and would come to realize only too late that having an online platform would be the way of the future. Meanwhile, in that same year, the number of Netflix subscribers reached 6. For comparison, today, Netflix is valued at around 65 billion — a 1,x increase from their valuation back in But at some point, they lost sight of what business they were really in.

Instead of focusing on delivering incredible and affordable entertainment to blockbuster vs netflix case study customers — something Netflix definitely has down — Blockbuster put more stock in the model they were comfortable using. And hey, who can blame them? But as we all know, technologies change.

To quote leadership coach Dain Dunston :. When a once successful company loses touch with the purpose that made it great, disaster follows. When you dig into the Netflix vs. And they did make changes to address it, blockbuster vs netflix case study. Blockbuster could never fully evolve into the modern business it needed to be in order to compete with Netflix. As Forbes reported:. The irony is that Blockbuster failed because its leadership had built a well-oiled operational machine.

It was a very tight network that could execute with extreme efficiency, blockbuster vs netflix case study, but poorly suited to let in new information. Technologies improve. Industries change.

In order to grow, you need to keep a pulse on the ever-evolving needs and preferences of your customers so you can make changes to your model accordingly. As we learned at our recent Drift meetup, which featured a panel blockbuster vs netflix case study 5 marketing experts, marketing channels have a shelf life.

Blockbuster lost their customers from the greatest form of executive negligence there is: Fear of change. Their fear of change spilled over into every business decision they made, preventing them from acting early and competently. Whereas Netflix developed a business model that simplified the video-renting process, making it more enjoyable for customers, Blockbuster only thought about maximizing their own returns.

Now when it snows, families can leave their hybrid station wagons in their driveways and access movies from the comfort of their couches. Today, there are approximately 10 Blockbuster locations left — down from 9, when they were in their prime. Blockbuster saga and how an entire industry can become upended in just a few years. Every Sunday evening we'll send you a roundup of the best content and events from Drift and around the web. Make sure you're ready for the week!

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Or is it a story about the extreme hatred people have for late fees? Of course, blockbuster vs netflix case study, that deal never materialized. Their valuation at the time? Blockbuster Battle 1. To quote leadership coach Dain Dunston : When a once successful company loses touch with the purpose that made it great, disaster follows. You need to be willing to adapt. But in the end, it was too little, too late.

As Forbes reported: The irony is that Blockbuster failed because its leadership had built a well-oiled operational machine. This applies to products and services as well as to marketing strategies. The key to surviving, and thriving?

Embrace change. To quote the Siam Tek blog: Blockbuster lost their customers from the greatest form of executive negligence there is: Fear of change. The customer-driven approach always wins. Join 20, of your peers. Subscribe to the newsletter for hypergrowth. Subscribe Here. No, not now Yes, I approve How Drift uses personal information.

 

3 Things Marketers Can Learn From The Rise Of Netflix (And The Fall Of Blockbuster) – Drift

 

blockbuster vs netflix case study

 

Mar 01,  · Check out the info graphic on 'How Netflix Destroyed Blockbuster' below, and let us know what you think. Is Netflix the future of entertainment? Will they take down any other businesses on their Author: Social Times. netflix vs blockbuster case analysis. Reed Hastings has already been a success for beginning new companies. He first made a name for himself by going public with Pure Software in After the development of this company he began to obtain several other companies and made Pure Software one of the 50 largest public software companies in the. How was the case study graded? In this case study (Netflix vs Blockbuster vs Video-on-Demand) the grade criteria used were: a) the correct use of the information provided in the case; b) the correct analysis of the situation presented in the case using strategy concepts given in class. c) Creativity! The difference between a good work and an.