I came across an interesting analysis (from a financial perspective) of the DVD rental market’s two biggest players. I’ve had several discussions during my torrid love affair with Netflix as to why I’m so committed to them even when Blockbuster had undercut their pricing. Well, basically, Blockbuster took full advantage of those of us who tend to not return movies on time, and I’m still bitter. Blockbuster sat on their laurels for years, content to suck the late fees out of their customers while doing nothing that would even approximate “innovation”. Internet…..what internet?!
Meanwhile, Netflix sprung up out of nowhere and took Goliath down. Blockbuster reacted. All of their frantic maneuvering was defensive in nature, as they tried to stem the flow of customers leaping online.
Anyway, the article sums up how I feel near the end, with:
…..but as it stands now Blockbuster hasn’t shown any signs of being innovative and Antioco is only now starting to understand how Netflix leverages the long tail to maximize profits.
I say screw ‘em…..
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