The competitive forces that have challenged the movie industry are YouTube, google and other online sources where customers can download and watch movies/Television shows for free. The development of the movies and TV shows online has become a major problem for the movie/tv industry. YouTube, which started up in February 2005 quickly made the most popular video sharing website in the world with over 100 million views daily. Soon enough, video clips of copyrighted Hollywood movies and television escalated on YouTube. The media had to go through $1.25 billion in damage and lost battle.
1. Threat of New Entrants: Because firms like Blockbuster and Redbox are so well known and have a reputable name, I think the threat of new entrants is fairly low. Not to mention, the increasing trend toward subscriptions, internet streaming, and video on demand will most definitely prevent more movie rental firms from entering the marketplace. Threat of Substitute Products: The threat of substitute products is relatively high in the movie rental marketplace as a whole. With firms like Netflix, there is an increasing amount of consumers who pay for a subscription and can stream movies directly to their TV, computer, tablet, or even cell phone.
Netflix and other Companies; Marketing Intermediaries at a Glance To provide easier access to most of the top movies companies such as Netflix, Inc. Amazon.com, Inc., and many other Kiosks appeared. Netflix, Inc. provides subscription based Internet services for TV shows and movies in the United States and internationally. The company allows its subscribers to watch unlimited TV shows and movies streamed over the Internet to their televisions, computers, and mobile devices. To keep up with the fast paced consumer environment, companies such as Netflix had to create integrated marketing strategies to promote business to the average consumer who have no extra time to spend in line at the local video store. Netflix, Inc. appears to fit the marketing concept of marketing intermediary.
Mr. Huizinga adopted a target market saturation strategy and opened Blockbuster stores throughout the nation reaching a majority of the U.S. television market. In the late 1990’s, Blockbuster experienced increased competition from cable’s pay-per-view services and video-on-demand systems and the company’s growth began to decline in the 2000’s. In addition to this, major studios began selling movies directly to stores such as Wal-Mart. Blockbuster also began to see competition from internet and mail rental companies
Weaknesses: 1) Service provided to Internet users only 2) Shipment/delivery time, slower delivery service. 3) Inability to rent new releases in a timely manner. 4) High cost of building a DVD library to support the growing subscriber base. 5) Rental period was inconvenient for some customers. Opportunities: 1) The rapid adoption rate of DVD players among U.S. households 2) New relationship with studios, Netflix transition to revenue-sharing agreements with the major studios.
As is stated in the article, the company used to have a major competitive advantage in terms of movie selection, where, “…customers could browse through thousands of titles…” (Hitt 106). Now, the entire scope of the market has changed and Blockbuster was much too slow to respond. The recent moves that it has made will surely generate profits, but not enough to sustain the company in the long run, seeing as there is nothing that differentiates Blockbuster’s services from that of its competitors. In order to fully gain lost market share back, the company would have to create some sort of highly innovative way of viewing or renting movies that none of its competitors has already thought of; It would have to be something that is rare, difficult to imitate, not easily substituted, and able to generate above-average returns. Unfortunately, at this point it looks as if none of this will come into fruition because Blockbuster has essentially decided to latch on to other companies, creating a sort of symbiotic relationship where the company feeds off of the success of its competitors.
Although Blockbuster is not really doing well in business as of today. It is still a prime example of competition of rivals dealing with the five-forces. Also, competition from producers of substitute products makes competitive forces in the movie rental marketplace because of its many options it gives movie renters. Examples include cable TV that offers many free movie channels or movies that you can rent, such as HBO, STARZ and etc. 2.
Pornography is a multi- billion dollar industry that is generating enormous profit margins and has created employment opportunities nationwide. Pornography also cannot be accurately identified anymore from what is porn and what isn’t in today’s media. Finally, what it all comes down to is free will and the choices people make to participate or not to participate, to watch or to not watch pornography. Porn is as much a part of today’s society as apple pie and baseball, and removing porn would be taking away from the public and those in pornography. Pornography is a multi- billion dollar industry that is generating enormous profit margins and has created employment opportunities nationwide.
Digital Multimedia is the most discussed topics in the whole entire planet because of the social and ethical issues that they bring. The main issue that need to be raised are piracy and finally the influence leading up to health issues. Piracy, I am pretty sure everyone on this planet has a pirated movie at home. So what is piracy? Piracy is the act of stealing something illegally, such as buying or downloading movies from the internet.
It has bought two music retail chains, two television studios, a company that runs children’s playground, invested $600 million in a bid to buy Paramount communication, and is already in renting video games and virtual reality goggles. Blockbuster is always changing its image that it cannot already delineate itself already. In the same year it signals to everyone that they are a Big-time entertainment company. However in 1993, blockbuster went seeking a new image – that of a multimedia company. This image-changing issues and rapid acquisition of businesses caused a lot of stumbles and lots of criticisms.