Many video on demand services are now offering technologies that allow users to pause, fast forward and rewind the movies they purchase. Though the selection offered by cable companies is extremely small in comparison to Netflix, it will only be a matter of time before the number of selections will increase drastically. § There are a large number of substitute products. Netflix is in the business of providing personal entertainment at an affordable cost. Since any other form of entertainment is considered a substitute, Netflix?s industry is in direct competition with all other forms of entertainment, whether it be reading, physical exercise, regular television, etc.
The customer does not need to pay for broken discs or movies lost in the delivery process. The Customer can feel free to give comments and recommendations about the service. * Netflix's web site is impressive and easy to navigate. Customers can master it quickly and benefit greatly from its movie introduction and powerful search engines, recommendation engines and queuing mechanism. If customers return to Netflix after only partially complete registration, they don't have to start over from the beginning.
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.
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.
Because of such resources, Google could deal easily with copyright protection issues. Thus, to avoid pirated content on the channel, YouTube signed an agreement with CBS broadcasting and music companies such as Sony, Universal, and Warner to broadcast their videos and share advertising revenue. Google’s biggest advantage is its capability to offer the users a “one-stop-shop” for all of its services and at a zero cost. A third competitive advantage was Google’s strong market share. According to the rankings, Google held 66%, while Yahoo held 17%, and Microsoft 15%.
However, the success in the movie rental industry is not solely determined the method of renting and technology. After investigating the movie rental industry and gathering a greater understanding of Redbox and their strategies, the recommendations for Redbox will conclude this case study. Discussion The Internet age brought about a newfound ease and convenience for gathering information and watching movies. The convenience of the Internet is just the beginning as Farhad Manjoo says, “where the movie-rental business is going and you will hear one thing: digital streaming. Amazon, Apple, Netflix, the cable companies, and many startups are gearing up to send every movie to your home on demand.” (Manjoo, 2009, pp.
Also, many companies offer perks like free shipping, personalized cards, and gift wrapping as part of their holiday deals. Memberships and rewards clubs are often another perk of using specific stores such as Finish Line or Dicks Sporting Goods that allow their customers to gain points on their accounts with each purchase you make that can ultimately help them save money in the long run once they have accumulated enough points. These rewards usually come in the mail as coupons or discount codes that can be used in online purchases. Online shopping can also save people money and energy that would otherwis... ... middle of paper ... ...ed in to a single site…” (Miller and Washington). Works Cited "Avoid Scams When Online Shopping."
Netflix versus Blockbuster versus Video-on-Demand Strategic Issues in the Case Founded in 1999, Netflix is an online DVD rental service whose strategy and market success were predicted on providing an expansive selection of DVDs, an easy way to choose movies, and fast, free delivery via postal mail. The company’s strategic intent was to be the world’s largest and most influential movie supplier. The goal of the company was to make it a lot easier for customers to select and rent movies and to eliminate the hassles involved in picking up and returning them. Its strategy incorporates customer convenience and a wide selection of entertainment selections. Netflix provides extensive information to its customers to help them make good selections and identify films that they may like to rent in the company’s vast library.
Miramax has not yet come up with a price for the movies. The movies have not yet been decided either but most likely there will be movies out on home video. I think it’s a great idea to put full-length movies on the web. Miramax is a huge industry so if the movies don’t work they aren’t greatly effected. However, being one of the first major studies to start showing full-length movies on the Web will definitely draw users just out of sheer curiosity.
The prices range from two dollars to five for the just released movies. U-verse may have some difficulties now, like only being able to record on one TV, but the problems are soon to be resolved. In conclusion, AT&T has become more organized and improved its tactics to target the younger consumer of their products by adding IM, internet and text messaging to their plans. Even landline connection free due to the Unity Plan and the rollover minutes can make your life more talkative and productive. They also have increased their profit by extending their name to your TV when you purchase U-verse.