MGMT 670- STRATEGIC MANAGEMENT - Case Study Example

The DVD had in reality created a wave among the Americans and it has been estimated that during the year 2008 more than 85 percent of the US households had this player. Apart from this, individuals could also very well subscribe for movie DVD’s and get them delivered to their home, by joining subscription services like the Blockbuster and Netflix companies. The advent of the internet into the homes have created a new platform, which has enabled people to watch downloadable movies. Many downloadable sites are available over the internet like the Netflix, Blockbuster, which allow the people al over the world, to either watch movies online or download them to their personal computers.

(Thompson 2008) Home Movie Rental Business and Economic characteristics 1. The future movie experience for the worldwide audience is going to get concentrated on the home viewing category, since more and more famous companies like the Netflix and Blockbuster are on the path of streaming movies, directly to the viewers big screen televisions. This could result in the start of an era, that could well enable the viewer’s world over to watch movies online or through the televisions, by subscribing with their satellite or cable operators. 2. Though most of the movie companies in the past have been much reluctant when it came to the provision of the video on demand because of the inherent threat of piracy, still some companies have changed their stance ever since.

They feel doubtful about the extent of the profits, that they could very well acquire from such a business model and hence they have shown a positive bias with regards to the streaming movies online that cannot be pirated. . 3. The online movie download and streaming facilities with the increase in the internet service the world over, have made the online movie rental business quite attractive. (Thompson 2008) Competition in the Movie Rental Industry Thus the question now boils as to how the entertainment industry is going to move forward in the coming years, with more and more breakthroughs taking place every day.

Indeed this has made the competition much tougher between the various companies in the US and the foremost among them have been the Netflix and the Blockbuster companies, which have been very much in the forefront, when it comes to the entertainment segment and in the business of providing their viewers with unique entertainment and movie viewing experiences. (Thompson 2008) Netflix Driving Forces The year 2008 as already mentioned before had indeed become an important year, which had marked a change in the way people started to watch movies through rental videos.

It started the subscription era of movies with the advancement of internet technology and the largest online subscription company turned out to be Netflix. Netflix Key Success factors The uniqueness that can be attributed to the Netflix success, can very much be attributed to the business model that it pursues for marketing its movies online. This is because Netflix through its online portal very well gives its subscribers the same kind of benefits that they get, when they visit their nearest online video stores.

They can pick from a wide variety of movies that are offered on the Netflix website and at the same time save valuable time, in case they had to rent it from their nearest rental video store by physically walking in and picking out the video. The distribution and the fast mail delivery system of providing the customers with