The document discusses how technology and new media have transformed Blockbuster's business strategies amid competition from on-demand services like Netflix and Redbox. Blockbuster's response includes closing stores, divesting foreign operations, and focusing on a digital future, while Netflix emphasizes its subscription model and digital delivery options. Both companies are adapting to changes in consumer behavior and technology, with Netflix growing its streaming capabilities and Blockbuster enhancing customer loyalty through in-store programs.

1. Blockbuster and New Media How Technology and New Media have Changed the Way Blockbuster Does Business IMC 498-24: Entertainment Marketing Monday, November 16, 2009 Stephen Davis and Melissa Lopardo

2. Blockbuster’s Competition On-DemandiTunesNetflixRedbox (kiosk)Mom-&-Pop video stores

3. Blockbuster’s Plan of AttackStore Closings

4. Divesting its Foreign Operations

5. Renew Focus on North American Business and Digital FutureSource: AOL Finance, Blockbuster INC Profile http://finance.aol.com/company/blockbuster-inc-class-a/bbi/nys/overview

6. THE PRICE$The way movies are rented from Redbox, NetFlix and Blockbuster differ as much as the way they are pricedBlockbusterStore rental $4.89 for new release

7. Mail plan ranges from $4.99 to $34.99 per mo. for as many as 3 dvd’sRedboxOne dollar per day up to 25 days

8. After 25 days customer can keep dvdNetflix$4.99-$47.99 monthly for as many as 8 dvd’s

9. No late feesSource: Chicago Tribune

10. Netflix Plan “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

11. NetFlix Fun Facts Created due to a $40 late fee for movie Apollo 13

12. Spends $600 million per year at USPS

13. Has patent on business model which reduces imitation by competitors

14. As broadband becomes more prevalent and cost of set-top boxes decreases, VOD is expected to gain ground in entertainment marketSource: Forbes Magazine

15. Netflix Focus 2009Exclusively on subscription segment ofinternet delivered contentsource Netflix Annual ReportBlockBuster Focus 2009Online subscribers deals with free in-store rentalsRewards program to enhance customer loyalty towards storesSource Blockbuster Annual Report