Recently, the incredible rise of video on demand within the media industry has caught my eye. The heightened popularity of Netflix and movie-order channels made available through various cable providers are enjoying a very high level of success. As a result, video rental companies like Blockbuster are being run off the map. Growing up, I would head to Blockbuster on a Friday night with my parents to pick out the latest movie. That Blockbuster has long been closed, and I can’t remember the last time I saw one in my neighborhood. These days, my family simply goes to “Channel 1” on our TV set, and decides on a movie from the WOW on-demand movie channel.
That being said, I would like to focus my project on the rise on Netflix and on-demand movie channels. What’s more, I would like to see how this has influenced companies like Hollywood Video or Blockbuster, and the DVD market in general. For example, has Netflix significantly lessened DVD sales in stores like Best Buy or Target? Are people still heading to the stores in the same numbers to buy their favorite movies or TV shows? Quite clearly, Netflix has impacted video rentals, but how was this accomplished? Through my final project, I will explore this rise in Netflix and other on-demand channels to see how they were so successful. In addition, I will explore how Blockbuster changed their business model to adapt to this shift in consumption. Blockbuster had to alter their business to cater to people’s needs, where consumers were now getting video rentals without having to leave the comfort of home.
Through research, I expect to find that Netflix had a significant impact on DVD sales. Personally, I would much rather rent a movie for two dollars on my television then pay upwards of 20 dollars for a movie I’ll likely watch once and store away. Therefore, I believe that Netflix and on-demand channels have completely altered the business model of Blockbuster and have significantly lessened the sales of movies and TV shows in stores.