Netflix vs. Blockbusters

Introduction

The era we are living is not called the era of speed out of nothing, where the technological development is making the world different every day. And different also includes more user friendly, faster, smaller world where everything is within few clicks away. The world we are living in now, is a virtual world, everything can be done online, one can buy all his grocery, clothes, commodities, electronics etc… , one can pay his bills, look for jobs, every single need in life can be fulfilled online.

This is what exactly gave Netflix the priority and leadership of online movie rental market, and eventually online streaming was included to give an even more convenient setup for the customer. On the Other hand, the drop that Blockbuster faced, even though it had more than 9100

Analysis

The movie rental industry has been growing exponentially with all the innovations and technologies that are making the domestic audiovisual experience much better and of high quality, which is the most important factor that is inducing this growth. From 22 Million dollars in 2004, up to 24.9 Billion dollars in 2007, the rate is expected to keep on rising as long as there are new technologies making this experience faster, cheaper and better. This industry started through direct purchase, where consumers can find the movies or series or documentaries they are seeking in retailers such as Wal-Mart, Amazon, and Virgin etc… But the revolution started with Blockbuster and Netflix, where the rental and purchase of DVDs movies, VOD, live streaming, vending machines, are the new era of media entertainment.

Being a commodity, the quality of the product the customer is getting is exactly the same despite the source, unless it’s not pirated and stolen through breach of copyright, the quality of the picture and sound u r getting is the same whether u get the movie on demand, from Netflix, from blockbuster, or any other source of media. This is why the firms have to keep track of the...