Can Blockbuster Stand up to Netflix Article Example | Topics and Well Written Essays - 250 words

Can Blockbuster Stand up to Netflix - Article Example These forces have mostly come from the competition provided by illegal downloads of movies in local markets and the pirated copies of films available in foreign markets but most importantly Blockbuster faces competition from a company called Netflix. Instead of using local distribution channels, Netflix uses an online storefront which means that they have reduced their distribution costs to a great extent. Netflix has used a technological solution to give itself the first mover advantage forcing Blockbuster to play the catch-up game (Epstein, 2006). Â  As the latest information available from Blockbuster, the company is venturing into online rentals for films and allowing the distribution of media material from online sources such as websites and even in-store kiosks to locate older films (Blockbuster, 2006). However, this may be a case of too little too late since Netflix is already offering their clients the same services. Blockbuster tried to compete with Netflix on price but the running costs of having stores across America and the human resource cost of maintaining those stores means that Blockbuster will always find it difficult to compete solely on the price model. Â  It does not seem that Blockbuster has a good future since analysts from both the business world and the Hollywood entertainment industry consider it to be little more than a zombie about to be killed by modern distribution methods (Epstein, 2006). However, Blockbuster does have an established name in the rental business and it is still a place where individuals can see the choices they have rather than to scroll through the choices.