Monday, June 9, 2008

The Evolution of the Movie Renting Business

The thing about innovation is it’s always happening. You may be on the top of the market today, but in a few years, someone who’s had the next big idea about how to change your business could be sitting on top of you in the market you were once dominate in. In a recent blog at Innovation on Purpose, Jeffery Phillips takes time to address what’s recently happened in the industry of video renting. He points out that ten years ago, Blockbuster ruled the market because they were virtually the first national chain to provide a huge selection of movies at your fingertips.


So when Netflix surfaced changing only two parts of Blockbuster’s model (no late fees a different delivery method), they’ve put Blockbuster running for the market they dominated. It’s been shown that they’re constantly innovating, by way of Netflix movies on demand, but there’s always someone after the market. Enter Flexplay a new type of DVD, which is no longer playable after 48 hours, and can be recycled. These movies have a preset viewing period, and upon the 48 hours, the movie can no longer be viewed, and the DVD is recyclable.


So what’s next in the movie renting business? It’s clear that there’s someone waiting in the wings, ready to innovate past Netflix. Which way will the industry go? And more importantly – what are Blockbuster and Netflix going to innovate to keep themselves competitors?

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