Question 1 Where did blockbuster go wrong? As the rise of internet, people get used to buy goods from internet because it’s more convenient. Then compared with Netflix, blockbuster doesn’t have a system to predict customers’ habits of choosing movies. Blockbuster will charge late fee if customers forget to return the cassette in time. I think this may make customers uncomfortable compared with Netflix.
Keeping a movie rented from Redbox for a good period will add up to the tab. Netflix allows the subscriber to keep any movie in the account as long as the monthly fee is paid. In additon, using Netflix allows movies streaming without the hassle of returning any material; on the other hand, Redbox can be cheaper if returning the DVD by the next day is not a problem. In order to achieve video streaming or watching a DVD requires additional equipment. Video streaming devices include computers, SMART TV, SMART Blu-ray, Wii, Playstation, Xbox 360, tablets, and smartphones.
I think this is because a lot of concerts are televised (most through pay-per view), and so this means they can be seen on TV. Because the concerts can be televised they can be recorded live and produced into a live taping and sold on DVD for consumers to purchase. Concerts are also a good way to promote a singer or band’s CD, making the sells higher if fans liked or enjoyed the concert. Some sites allow you to stream videos of concerts as well as TV shows, and sports events. So, yes, concerts would be competing with them as well.
The movie into instant-delivery movie rentals has made it so that a lot of companies cannot enter into a lucrative industry without high fixed costs. Due to the centralized organization of online entertainment companies, there is an economies-of-scale effect even for relatively new companies as compared to their brick-and-mortar competitor’s such as Blockbuster. Due to the low cost for business to enter this industry, there are a lot of options that consumers may choose from when looking to purchase movie rental products. With companies such as Apple and Amazon entering this marketplace, the consumer’s bargaining power is extremely high and results in a lot of price competition between companies. The threat of new entrants into this industry is extremely high due to the low amount of capital needed to enter into the industry as compared to others.
The idea is that people will rent movies in places they would have to go to anyways, or rent movies after walking past one of the kiosks even if they were not considering to in the first place. The organization’s goal was to rapidly increase the number of kiosk locations so the company could serve more people or even better serve them, as customers could return a DVD to any of the Redbox kiosk, not necessarily the one they got it from. Another key element of the company’s strategy is the partnerships with not only the retail chains but also the movie studios, wholesale distributors and third party retailers, which enabled the company to provide latest releases in the high-traffic locations. Strategy used by Redbox: Low Cost Provider Redbox utilizes a low-cost provider strategy mainly as it focus on not having the expenses that other physical stores have to deal with. As stated before, the company does not have to deal with a lot of employees’ wages and benefits, expensive rent, electrical bills and so many other maintenance expenses associated with keeping a store.
It is unlikely that those firms will integrate backwards; such activities are very different. However, network owners mostly integrate forward. However, network owners do not rely solely on ISP business, they also generate revenues from other sources such as telephone, advertisement and TV. Thus, it is conceived that the supplier bargaining power is strong. Furthermore, the current strong growth is alleviating most of competition pressure which is going to be more intense once the market reaches high saturation levels.
Also, Netflix has sponsored an exclusive window on some pretty good shows, including its big hit, "House of Cards." •DVD margins- yes, some people still rent DVD’s, which also helps make-up for some of the content unavailable via streaming. While HBO won’t be allowing the Sopranos to streamed via Netflix anytime soon, you can still get the series from Netflix via DVD. To boot, the service boasts strong contribution margins of around 50%. •Price- $7.99 for all you can watch is cheaper than one night out at the movies.
The kiosk allows people to rent movies for just over a dollar a night and return them whenever you want. Originally Redbox was owned by McDonalds and started in their locations until Coinstar bought the Redbox Company. Redbox uses the low-cost provider strategy due to the fact that the movies are convenient and low cost which appeals to all levels of income and makes the consumer believe it is of great value. Through Coinstar Redbox has been able to enter into many partnerships with retail giants that Coinstar already operated in. Redbox has achieved great success by focusing on its core competencies for being the low cost provider.
They assumed that unlimited streaming service had more demand than DVD service. Before Netflix changed its pricing structure, the customers paid $7.99 per month for unlimited online streaming plan, or an additional $2 per month for the DVD-by-mail service. So the total cost for the user who wish to use both service unlimited online streaming and the DVD-by-email was $9.99 per month. However, this pricing was not financially sensible for the company because of the misconception of the demand of DVD rental service. Therefore, Netflix set the price $7.99 for both service unlimited online movies and unlimited mail-order DVDs respectively.
As a result, the advertisers are interested in using Foxtel since it has large market share and its services can be accessed in different places. Advertisers can target specific markets using pay-television. At the same time, the interactive services offered could also be a strength to Foxtel since it is not offered by free-to-air televisions. WEAKNESSES It has been noticed that Foxtel is slow in adopting new technologies and features to differentiate its service from competitors. For example, the high-definition channels and downloadable movies are also offered by free-to-air television and other companies not in television industry.