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Project Netflix and blockbuster Paper
Introduction
Blockbuster was a brick-and-mortar home movie and video game rental service, founded in 1985 that quickly grew from 1 location to thousands around the world. In 1997, Netflix was founded and they started renting out movies by mail. In 2000, Netflix went to blockbuster with a merger proposal to work together instead of against each other. The merger did not happen and eventually, Netflix became the largest streaming service in the world while BlockBuster went bankrupt. With 117.6 million paying subscribers, $11 billion in revenue in 2017, $100 billion in stock market value and original productions that allow it to compete with cable channels and movie studios, Netflix is now a true tech giant on par with Amazon or Facebook.
“Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. By entering in the low-end market (for consumers who don’t have the means to pay the standard price of market) and so, you earn market share compared to the incumbents.
Here, advantages that Netflix had over BlockBuster was first their elimination of late fees, this was an advantage for Netflix but late fees were one of BlockBusters main sources of revenue. BlockBuster tried to follow Netflix with this trend, but their revenues took a big hit.
Another advantage Netflix had over BlockBuster was getting the movie to the customer without them having to leave their home first by shipping DVD’s and then eventually turning into an online streaming service. Netflix provided a much more convenient and easier service for consumers as they did not have to go anywhere to purchase the product. This provided a convenient experience for consumers of Netflix and provided a personalized experience to consumers. BlockBuster stayed stagnant and racked up a lot of debt with poor leadership and the company was unable to evolve to online streaming which consumers started to prefer.
At a time when the Internet was beginning to take hold in homes and DVDs were about to replace VHS and LaserDiscs, Reed Hasting and Marc Randolph sensed that these two trends were here to stay.
They decided to offer a new service in the United States: the online rental and purchase of DVDs delivered to the home, quickly supplemented by a monthly subscription offer. This innovation, both marketing and commercial, established what would become the trademark of Netflix: a natural appetite for innovation and audacity, an understanding of users’ needs and a fierce desire to build community loyalty.
Netflix has been successful because it has been able to adapt to trends and customer demand. The company has been able to seize opportunities, innovate when needed and above all they dared the self-disruption by understanding that streaming is the future.
The company first relied on DVDs rather than VHS cassettes, and then evolved into a streaming service. By eliminating the extra fees, offering subscription instead of rental, and removing the physical constraint (people no longer have to travel to rent a movie), they have revolutionized the market.
Moreover, the innovations didn’t stop there as Netflix kept on developing and looking for new ways to improve. For example, the company has set up an algorithm to analyze the tastes of users in order to offer them the most suitable movies for them! Its system, dubbed “Cinematch,” uses algorithms to suggest rentals based on movie availability and DVD rental history – which allows the software to gauge customers’ tastes. This recommendation system will become one of the pillars of Netflix’s success.
To distance itself from its competitors (cable channels, mainly), the platform also relies on the quality of its programming: an agreement was made with Paramount, Lionsgate and Metro Goldwyn Mayer studios in 2010 … then Netflix finally decided, in 2013, to produce its own “original creations. Finally, the fact that Netflix offers original creations and constantly renews itself is a huge advantage since customers have access to series and movies that they will not find anywhere else.
To conclude, Netflix kept up with emerging trends and adapted to consumers needs and wants. Technology has grown tremendously since the start
Buoyed by the success of the series “House of Cards” and “Orange is the New Black”, but also by its recommendation system that targets ever more finely the desires of users to offer them what corresponds to them (to the point of personalizing the illustrative images of the films according to the preferences of each), Netflix sees its number of subscribers soar.
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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Project Netflix and blockbuster Paper |
Project Netflix and blockbuster Paper