Blockbuster Essay

 Blockbuster needed to develop some new things in the market if Blockbuster wanted to remain number one in the industry. New things or changes such as developing a similar platform like Netflix.
 The company managed to acquire Movielink, which will enable Blockbuster to offer unlimited access to their customers with downloadable movies. This new method of business with the content of downloading movies industry will reach $1 billion by 2010 as estimated by John Antioco (Xie & Lin).
 Blockbuster needed to improve the quality and quantity of their online products since customer were transitioning and becoming more adaptive to movie streaming than going to a store and rent a movie.
 Like Redbox (a competitor in the industry) blockbuster needed

By fully incorporating the internet into its operations, Netflix was able to quickly overtake its chief rival, Blockbuster, but the company had not developed a new business model. Instead, Netflix was able to adapt several known business models and incorporate new digital innovations to quickly gain competitive advantage.
Netflix gained its initial competitive advantage, not through a new business model, but through a combination of known business models. The company combined the physical landlord model with the subscription and all you can eat models to allow customers to rent all the DVDs they could in a month for a flat fee. Customers were allowed to keep the DVDs for an unlimited period of time and were not subject to late fees. In return, customers agreed to pay a recurring monthly subscription fee (DigitalBusinessModels.com)
Luckily, Netflix was able to overcome some of the weaknesses of the by delivering DVDs through the mail. This absence of physical infrastructure and advanced incorporation with the postal service provided a huge, clear path and advantage over the Blockbuster model. By opening rentals to all you can eat, customers were never issue late fees and could rent as many movies as they pleased in a monthly basis. Finally, the monthly subscription provided steady cash flow for Netflix while launching a single low price that customers could count on month after month.

With just a little bit of timing, customers can have movies coming and going to almost always have a movie ready to watch. Add the recommendation engine for additional suggestions along with streaming and strong customer support, and you've got a good experience generating loyal and enthusiastic customers.
 A benefit of having any monthly plan costing at least $8.99, for those nights when the random urge takes you. Plus, Netflix streaming is available on many different consumer electronic devices and is becoming a standard feature for new TVs.
 For as little as $9.99 a month, people can watch as many movies as they want, either streaming or on DVDs. For just a bit more, a higher number of DVDs can be out at a time, giving users more flexibility. Less expensive than paying for cable movie channels, while giving more selection.
Weaknesses:
 Pricing power. The studios can still dictate some serious terms to Netflix, limiting when various movies become available or for how