How the Video Rental Industry Changed Forever

*Title: * How the Video Rental Industry Changed Forever | Instudia

*Photo by Venti Views on Unsplash

Introduction

Blockbuster and Netflix are two of the most well-known names in the video rental industry. Blockbuster was once the king of the hill, but Netflix has since surpassed it in popularity. How did this happen? And what can we learn from the rise and fall of these two companies?

Blockbuster's Rise to Power Blockbuster was founded in 1985 by David Cook and John Antioco. The company's first store was located in Fort Lauderdale, Florida. Blockbuster quickly grew in popularity, and by the early 2000s, it had over 9,000 stores in the United States.

Blockbuster's success was due to a number of factors. First, the company had a wide selection of movies and TV shows to choose from. Second, Blockbuster's stores were conveniently located, often in shopping malls. Third, Blockbuster offered a variety of rental plans to fit different budgets.

Netflix's Rise to Power Netflix was founded in 1997 by Reed Hastings and Marc Randolph. The company's original business model was to send DVDs through the mail. Netflix quickly gained popularity, and by 2007, it had over 1 million subscribers.

Netflix's success was due to a number of factors. First, the company offered a wider selection of movies and TV shows than Blockbuster. Second, Netflix's DVD-by-mail service was more convenient than going to a store. Third, Netflix's prices were lower than Blockbuster's.

The Fall of Blockbuster Blockbuster was slow to adapt to the changing video rental landscape. The company resisted the move to digital streaming, and it continued to focus on its brick-and-mortar stores. As a result, Netflix was able to gain market share and eventually surpass Blockbuster in popularity.

Blockbuster filed for bankruptcy in 2010. The company closed its remaining stores in 2013.

What We Can Learn from Blockbuster's Fall Blockbuster's fall is a cautionary tale for businesses that are slow to adapt to change. In the digital age, businesses need to be willing to embrace new technologies and business models. If they don't, they will be left behind by their competitors.

The Future of Video Rental The video rental industry is still evolving. There are now a number of different streaming services available, including Netflix, Hulu, and Amazon Prime Video. It is unclear which service will ultimately dominate the market. However, one thing is for sure: the days of going to a physical store to rent a movie are numbered. The future of video rental is digital.

Conclusion Blockbuster and Netflix are two very different companies, but they have both had a major impact on the video rental industry. Blockbuster was the king of the hill for many years, but it was ultimately unable to adapt to the changing landscape. Netflix, on the other hand, was able to embrace new technologies and business models, and it is now the leading provider of streaming services. The future of video rental is digital, and it will be interesting to see how the industry evolves in the years to come