A Maturing Market for Blockbuster

Mature markets in the big market are expected to slow down to $ 31 billion in 2004, which is expected to decline slightly to $ 30.2 billion in 2005, with an average annual growth rate from 2000 to 2003 of about 3 billion It is dollar. Market progress as of 2003, households with a penetration rate exceeding 80% in 2005 are maturing, and those who are delayed in adopting hardware are more likely to buy software than early purchasers It is because it is small.

Blockbuster's growth was brought about by the market advantage when 80% of the company's shares were held by Viacom. In 2004, Blockbuster decided to exempt them from the late fee spending $ 200 million online on Blockbuster, which will result in a reduction in revenue of about $ 200 as a result. However, when adopting this strategy, Viacom quit the company and believed that the new way was not consistent with his own vision. The challenge for companies leading the market is that they can not rebuild business models in the face of technology changes. On the other hand, agile startup Netflix has grown rapidly, continuing to achieve revenue and user growth until 2010, due to the maturity of streaming video technology.

Blockbuster 's competitive video rental business has several strengths to help shape the market. New competitors entering the video rental market are threatening entry. Filling the cost of Blockbuster with its own terms and with a wide range of retail outlets is a barrier to new technology and marketing opportunities like newcomers, mail delivery, kiosks, on-demand and streaming media. Vision Manufacture Blockbuster is pursuing massive expansion to acquire independent stores and small chain stores, so this reduction of barriers continues to compete

However, regarding promotion, BesTV has a big advantage. Because existing big hit products have gained high popularity in the market, we have invested heavily in the advertisement and promotion of new products such as Total Access. In addition, Blockbuster has the unique advantage of providing a newly released movie 28 days before the competition. This is the fact that they are heavily used for advertisements. When you stop by the store, Blockbuster will guarantee that the newly released movie will be available, otherwise it will be free for the next time.