Blockbuster vs Netflix Essay
Blockbuster opened in 1985 and in its “first 20 years of business, the movie rental giant opened 9.100 stores in 25 countries” (Laudon, 2007, p. 121). Netflix launched in 1998 using a new business model and became Blockbusters biggest threat. The paradigm shift in the rental industry from having to travel to a store and rent a movie to being able to have a movie delivered to your mailbox changed the way people think about media entertainment. The next shift will be having the technology to download movies and shows directly to a television.
Blockbuster and Netflix are using two different information system strategies. Blockbuster, which is a traditional retail store with a physical …show more content…
A key issue for both Netflix and Blockbuster is the introduction of new competitors. Video-on-demand and “Apple TV service, which allows subscribers to download movies via iTunes on to a set-top box - as well as hundreds of free video podcasts - and watch them on the television sets in their living rooms” (Doran, 2008) are beginning to launch services that let customers download movies from the comfort of their sofas.
The changing culture and industry are hindering Blockbuster’s role in the video rental industry. As more and more people are using technology, “the idea of a high street video rental chain becomes more of an anachronism every week,” (Doran, 2008). Another factor that has created problems for Blockbuster are the two systems it has currently. One is the physical stores that it has built up over the years and the other is the online services