Netflix over Blockbuster: How Netflix Beat Blockbuster and Remains Dominant

Running head: NETFLIX OVER BLOCKBUSTER
Netflix over Blockbuster
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1NETFLIX OVER BLOCKBUSTER

2NETFLIX OVER BLOCKBUSTER
Table of Contents
1. Introduction..................................................................................................................................2
2. Institutional Background.............................................................................................................2
2.1. A brief history of Blockbuster..............................................................................................2
2.2. A brief history of Netflix......................................................................................................3
3. How Netflix beat Blockbuster.....................................................................................................4
3.1. Changing technology............................................................................................................4
3.2. Retail outlets versus operating online (200).........................................................................5
3.3. Pricing strategies...................................................................................................................6
3.4. Netflix’s innovations............................................................................................................6
4. Will Netflix remain the dominant provider of online video streaming?.....................................7
4.1. Netflix stumbles: The demise of Qwikster...........................................................................7
4.2. Netflix rebuilds: The rise of original content.......................................................................8
4.3. The future of Netflix.............................................................................................................9
5. Conclusion.................................................................................................................................10
References:....................................................................................................................................12

3NETFLIX OVER BLOCKBUSTER
1. Introduction
For many years, the television was distributed by the broadcast wave, one of the
revolutionary technologies which sends wireless signal over a huge swath of countries. The
movie retail companies are the ones considered to rent Blu-Ray discs, video games and DVDs
that are usable at the home-based electronic equipments (Hurni and Cooper 2015). There are
many companies that have participated in this lucrative business and two among them are Netflix
and Blockbuster. Both the companies are at present the leaders in the industry of retail movie and
this is why they are also the major rivals of each other within the industry. This paper is focused
on critically provide an in-depth analysis of Netflix with a focus on the Strategy in action and the
strategic choice. It will provide a brief history of both the companies. The paper would further
elaborate on analysing the reasons behind Netflix’s success towards beating the Blockbuster and
how it would remain the dominant provider of the online video steaming in the coming years.
2. Institutional Background
2.1. A brief history of Blockbuster
Blockbuster LLC was formerly known as Blockbuster Entertainment, Inc and
Blockbuster Video. It was founded in the year 1982 by David Cook (Chopra and Veeraiyan
2017). It was founded with an aim to supply computer software services to the oil and gas
industry of Texas. At first, it used to provide its service of video game rental and home movie in
the American region alone through means of DVD by mail, video on demand, streaming, cinema
theatre and video rental shops. The first store of Blockbuster was opened in the year 1985 in
Texas (Dana 2017). The company has become globally known throughout the nineties. In the
year 2004, the company was at its peak and it then employed around 8500 workers worldwide,