Entertainment Marketing PPT


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Final power point presentation stating the decline of video rental companies due to technology changes.

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Entertainment Marketing PPT

  1. 1. Blockbuster and New Media <br />How Technology and New Media have Changed the Way Blockbuster Does Business <br />IMC 498-24: Entertainment Marketing <br />Monday, November 16, 2009 <br />Stephen Davis and Melissa Lopardo<br />
  2. 2. Blockbuster’s Competition <br />On-Demand<br />iTunes<br />Netflix<br />Redbox (kiosk)<br />Mom-&-Pop video stores <br />
  3. 3. Blockbuster’s Plan of Attack<br /><ul><li>Store Closings
  4. 4. Divesting its Foreign Operations
  5. 5. Renew Focus on North American Business and Digital Future</li></ul>Source: AOL Finance, Blockbuster INC Profile <br />http://finance.aol.com/company/blockbuster-inc-class-a/bbi/nys/overview<br />
  6. 6. THE PRICE$<br />The way movies are rented from Redbox, NetFlix and Blockbuster differ as much as the way they are priced<br />Blockbuster<br /><ul><li>Store rental $4.89 for new release
  7. 7. Mail plan ranges from $4.99 to $34.99 per mo. for as many as 3 dvd’s</li></ul>Redbox<br /><ul><li>One dollar per day up to 25 days
  8. 8. After 25 days customer can keep dvd</li></ul>Netflix<br /><ul><li>$4.99-$47.99 monthly for as many as 8 dvd’s
  9. 9. No late fees</li></ul>Source: Chicago Tribune <br />
  10. 10. Netflix Plan <br />“We named the company Netflix, not DVD’s by Mail, because we knew we would eventually deliver movies over the Internet. DVD’s will be around for a long time, but we are building for the day they are not.” – Reed Hastings, CEO, NFLX <br />
  11. 11. NetFlix Fun Facts <br /><ul><li>Created due to a $40 late fee for movie Apollo 13
  12. 12. Spends $600 million per year at USPS
  13. 13. Has patent on business model which reduces imitation by competitors
  14. 14. As broadband becomes more prevalent and cost of set-top boxes decreases, VOD is expected to gain ground in entertainment market</li></ul>Source: Forbes Magazine <br />
  15. 15. Netflix Focus 2009Exclusively on subscription segment ofinternet delivered contentsource Netflix Annual Report<br />BlockBuster Focus 2009<br />Online subscribers deals with free in-store rentals<br />Rewards program to enhance customer loyalty towards stores<br />Source Blockbuster Annual Report<br />
  16. 16. BlockBuster FutureTent-Pole-Title Program<br />A major focus is bringing customers more copies of big box office titles to rent or to buy and is supported with marketing message in the store.<br />Example- Indiana Jones-themed car Marco Andretti drove in Indy 500. Show car was featured at local events at BB stores before hitting track at Indy 500 in May 2008<br />Soucre Blockbuster Annual Report<br />
  17. 17. NETFLIX FUTURE<br />Some movies streamed instantly:<br />• Instantly watch online on your PC or Mac<br />• Instantly watch right on your TV via a Netflix ready device.<br />• Choose from a growing library of movies & TV episodes.<br />As a bonus to your DVDs by mail,<br />some movies streaming to your TV<br />over the Internet!<br />Source Netflix Press Kit<br />
  18. 18. Blockbuster Operations<br />Stores- Domestic stores generally open 365 days a year, with daily hours 10 am-10pm. As of Jan. 2009 4,585 stores in U.S.<br />Mail- offer 90 thousand movie titles, no due dates and option of video-game rentals beginning in 2009<br />Vending- used to expand physical distribution of media entertainment, continue to test solutions to offer convenience to customers<br />
  19. 19. BlockBuster Digital Delivery<br />Movielink, LLC- offered on Blockbuster website, movie downloading business with one of the largest libraries of digital content for both rental and sale. Allows for capitalizing on film downloading market and additional choices for customer needs.<br />
  20. 20. Reed Hastings-Netflix CEO<br />Never underestimate the competition: We erroneously concluded that Blockbuster (BBI, Fortune 500) probably wasn't going to launch a competitive effort when they hadn't by 2003. Then, in 2004, they did. We thought, well, they won't put much money behind it. Over the past four years they've invested more than $500 million against us.<br />Source : Forbes Magazine Jan. 2009<br />
  21. 21. BBI StockHIGH 2002 $28.60LOW 2009 .82<br />
  22. 22. NFLX- MOST RECENT STOCK PRICE $59.33 /last Friday<br />
  23. 23. PARTNERSHIPS 2009<br />NFLX & MICROSOFT<br />MICROSOFT AND SONY BEGAN OFFERING XBOX CONSOLE OWNERS VIDEO-WATCHING SERVICES– THROUGH A PARTNERSHIP WITH NETFLIX<br />SONY, WITH THE PS3, BEGAN OFFERING ACCESS TO NETFLIX<br />BBI & SONIC SOLUTIONS<br />Provides “know how” to bring movie downloads and rental services to devices and to extend business to media players, set-top boxes and internet ready tv’s<br />