1. Only a few of the dot-com businesses that have tried to startup have made it past the beginning stages. The movie and entertainment industry is constantly evolving which makes it even harder for a movie based dot-com business to flourish. With the ease it takes to go to Wal-Mart or Blockbuster to rent or buy a film, the online movie business has been forced to develop software and technology that makes it easier to rent movies. Online movie rental businesses need to adapt to the fact that people may be able to download movies onto their televisions or computers instead of renting.
2. Netflix has a vision to "change the way people access and view the movies they love." Over the next four to seven years Netflix would like to have customers in five percent of all U.S. television households. This would be equal to approximately five million subscribers. This vision can be met by staying ahead of their closest competition, Blockbuster and Wal-Mart.
3. Netflix wants to provide all the benefits of a movie rental store without the hassle of having to return the rentals before being charged a late fee. Customers would only be able to keep out a certain number of movies at a time. For a set price the customer could watch the movies they want, without late fees. Customer satisfaction was achieved through fast delivery, low prices, and allowing the purchaser to see the movies they want to watch with less hassle. Browsing for movies with the click of a button is quicker than going to the store and walking through aisles to find the right selection. The advantage that Netflix has is convenience. Their customers find it easy to browse and rent movies, while having them delivered in a minimum amount of time.
4. Netflix is based mainly on movies, while Blockbuster, Wal-Mart, and others also carry a selection of video games and a wider collection of genres. Wal-Mart carries a name that attracts many customers due to the low prices and the company name. It has also expanded to a rental DVD company very similar to Netflix. Customers can pay a fee for unlimited service and a selection like that of the Netflix company.
5. The online movie rental business is using fast delivery, and wider selection to attract new customers.
Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.
The Hulu Plus ad only shows the color and the words used. Using bright green and bold words “try it free” really grab your attention. The Hulu Plus ad target audience is anybody who has Internet accesses and has a favorite T.V show or likes to watch movies for a past time. The Netflix ad is similar to the Hulu Plus ad, but with subtle differences. The Netflix ad delivers the same message but in a more powerful way. This ad has more then just words; it has an actual family and the product in use. The ad shows a variety of shows and movies up to select from. The ad also shows a happy family enjoying the product. The ad shows that it’s in a safe, and affordable house so it can be widely used for any family. Netflix target audience in this ad is for family’s that enjoy spending time together watching favorite TV shows, and movies at home. Also with Internet connection and a decent amount of income. Both ads use the same approach of logos to convince their audience that their service is the ultimate choice for simply streaming online entertainment.
Both services do share some of the same tv shows and movies, but ultimately in my opinion Netflix has the better option of movies. Netflix has some of the newer movies higher rated movies. Netflix has a better option of classic movies then Hulu has available. Hulu does have access to shows faster than when it becomes available on Netflix, but Netflix does have a larger source of shows than Hulu does. With the new shows that go to Hulu only five are available at a time. While Netflix has access to season of the same shows, so you are available to go back and rewatch the whole series over
Due to the convenience and numerous locations of stores, the service of the walmart.com results in an attractiveness to customers, and a way for Walmart to eventually bring more customers to its stores and increase their purchases.
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
[1] Halal, Bill. "How NetFlix Beat Blockbuster: An Exemplar of Emerging Technologies." William E Halal RSS. N.p., n.d. Web. 09 Dec. 2013.
Companies like Amazon and Netflix are very effective in predicting what customers normally buy and watch. Knowing what your customers are or are not buying will allow you to position products that they are statistically likely to purchase based on recent transactions and activity. This is a powerful tool for Netflix because it keeps users engaged and actively using the service but also allows them to tailor their investments in content towards items that are more likely to keep users active on their site.
Therefore, Netflix has fewer problems predicting revenue. ? Netflix enjoys lower fixed costs due to the fact that it is an online DVD rental company. As an internet business, Netflix incurs less overhead costs than competitors such as Blockbuster, as well as having fewer employees to operate the physical locations, thus labor costs are greatly reduced. ? Netflix gives customers unlimited access to the largest selection of DVDs. Netflix?s video library consists of over 45,000 titles, making their selection the worlds largest, beating out Blockbuster, Movie Gallery, and Hollywood Video. ?
As the firm moves forward, top managers must pay attention to staying unique to sustain a competitive advantage. Netflix does not own their content, nor do they have any tangible assets. Netflix is a part of a broad range of network users. As technology continues to grow exponentially, Netflix will have to be readily adaptive to change and innovation. Technology never stops growing and evolving, therefore, Netflix’s business platform should never stop growing and evolving. At the same time, they must be careful to remain user friendly and customer centric by keeping the technology at a level where users will not have to obtain a certain set of technological skill sets.
Blockbuster's origins date back to the mid 1980's when the video cassette recorder (VCR) was the new hype and families all over America were quickly turning to movie rentals as a form of in-home entertainment. David Cook, who previously started David P. Cook and Associates, Inc. to offer consulting and computer services, saw an opening in the quickly expanding movie rental business. Eager to start a business, he jumped in making Blockbuster the Wal-Mart of movie rentals offering a wide variety of movies to customers in a family environment with standout buildings and bright lights. From there, Blockbuster growth exploded bringing in external investors and national attention.
The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard...
Although Hastings vowed to be divergent from other video retailers, his goal was to use an identical pricing strategy; however, one that would “appeal to customers [. . .] who used online shopping as an alternative to traveling to retail outlets” due to ease of access and more preferences (Shih, Kaufman, & Spinola, 2009, p. 3). Furthermore, Netflix launched its business at a time DVDs had barely hit the marketplace as the firm anticipated the new technology to be a promising venture. Nonetheless, within a year DVD players became so vast...
A movie theater has its advantages and disadvantages. One advantage is that people can see the showing of different movies that have been newly released. The disadvantage is that, that is all there is to it and nothing more. At home, you can control the variety and ways to watch a movie. People buy many movies to watch at home and it can be anything at any time even at any place. The only bad thing about it is that they cannot see any of the newest released movies that recently came out in theaters. There are two types of ways people watch movies at their homes. One way is people already own DVDs or have bought many of them and start watching them in their DVD players. The other ways are streaming a movie through the internet. For this to happen, people would mainly buy the monthly subscriptions such as Netflix, Hulu, or Amazon Prime. Through this subscription people do not only watch movies in their homes but they also watch television shows. The only downside is there is a very limited number of movies added onto these
In today’s technology boom, the new waves of doing business have transformed the way people shop and live. The same happened the way people access personal entertainment. With Internet, people can stream movie online without have to go theater, or the rental movie box.
Netflix was established by Marc Randolph and Reed Hastings in 1997 in California. Initially, the company offered a DVD-by-mail service for a monthly, flat rate subscription fee. Videos were sen...