![Where did Blockbuster go wrong?
Greed
Hubris
Lack of customer-centric business model.
Inability to adapt and make the operational changes to
harness power of customer data
Netflix offered to sell to Blockbuster and they “laughed
[Netflix] out of the office”.
Inflexibility](https://image.slidesharecdn.com/netflixvs-201024223846/85/Netflix-vs-Blockbuster-Case-Study-4-320.jpg)
Netflix vs. Blockbuster Case Study
- 1. Netflix vs. Blockbuster The Rise of Video-on-Demand Blockbuster’s Viable Options: Buy Netflix, or Become Netflix A Case Study by Angela Collins, Gaylene Meyer, and Lily Zimmerman Summer 2018
- 2. Convenience + Accessibility Affordability Netflix’s Business Model Studio Partners
- 3. Netflix’s (Customer) Data-Centric Strategy Netflix Tracked specific dimensions of customer use like: - Total time spent on Netflix site - Patterns among actors, directors, and genres watched - Time-gap between shows watched on Netflix site
- 4. Where did Blockbuster go wrong? Greed Hubris Lack of customer-centric business model. Inability to adapt and make the operational changes to harness power of customer data Netflix offered to sell to Blockbuster and they “laughed [Netflix] out of the office”. Inflexibility
- 5. Blockbuster’s Options - Missed Opportunities Buy Netflix Failed 50 Million Dollar sales offer to Blockbuster Become Netflix Blockbuster was inflexible and unable to accurately read the changing market
- 6. Netflix Eventually Usurped Blockbuster’s Throne
- 7. Netflix - Threats & Opportunities Threats - Risk of shifting too much focus/resources toward the streaming side of the business before enough consumers have adopted VOD as a regular/preferred form of media consumption - Lack of established partnerships with studio / content-producers (in contrast to Blockbuster) Opportunities - Fast growing customer base - Boldness and nimbleness to adapt to changing technological environment by leveraging customer data.
- 8. Netflix Partnerships: Prioritize Content Providers or Hardware Manufacturers? Prioritize partnerships with content providers!
- 9. Conclusion Blockbuster’s Viable Options: Buy Netflix, or Become Netflix
- 10. References & Image Links https://missionalmarketing.com/wp-content/uploads/2017/10/Netflix-VS-Blockbuster-placeholder.jpg https://goo.gl/images/NAzXpQ https://neilpatel.com/blog/how-netflix-uses-analytics/ http://topinfographic.com/smart-tvs-infographic/ https://www.google.com/search?q=netflix+recommendation+algorithm&client=firefox-b-1-ab&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiQi8yu2 ujcAhV3FTQIHUiLB3YQ_AUICigB&biw=1472&bih=983#imgrc=qPNchAwDhB59aM: