Friday, November 4, 2011

Blockbuster's Competition

The movie rental company, Blockbuster, has been dealing with many setbacks. The rise of online movie distributors like Netflix and also more convenient ways of getting movies like Redbox, which are conveniently located at many gas stations around the country. This competition has been making Blockbuster make some very important decisions. One decision they have to deal with is the shutting down many of the stores including the most convenient one by my house. Now I have moved on to the much more convenient road of Netflix and the occasional Redbox movie. Also, due to the demand being so high for Netflix and Redbox they upped the prices by two dollars. This forced Blockbuster to make the same decision because of competition says this article. I think that Blockbuster needs to start making some big decisions now to compete with Netflix and Redbox, or else bad things will happen.


Anonymous said...

Great Blog! I strongly agree that blockbuster is heading in the wrong direction. With places to watch movies online and at a monthly price blockbuster has a lot of competition. I think that eventually blockbuster will fail because of all the competition.
Zeev F

Anonymous said...

Do you eventually think that the marginal revenue will be less than the variable costs and they will have to make the shutdown decision?

Lauren E

Anonymous said...

I agree that if Blockbuster didn't have any streaming option that they would be unable to compete with Netflix, however that isn't the case anymore. Working for DISH Network I decided to test out the Blockbuster Movie Pass when it was released, and I'm loving it. I get streaming straight to my DISH receiver, I get rentals via mail including video games and blu rays, all at no extra cost. So again I agree with what you're saying, it's just not the case anymore.