From Blockbuster to Netflix: The Evolution of the Home Entertainment Industry

This case describes the evolution of the home entertainment industry in the United States, focusing on its two main players in the period 2000-2017: Blockbuster and Netflix. It follows the growth and success of Blockbuster as the leader in the video rental segment, the challenge of Netflix with its mail-in option and Blockbuster's inability to respond. Finally, it closes with Netflix's transition from a physical DVD rental company to its current business centered around streaming and original content.
Collection: IESE (España)
Ref: SI-201-E
Format: PDF
Number of pages: 13
Publication Date: Mar 23, 2018
Language: English

Description

This case describes the evolution of the home entertainment industry in the United States, focusing on its two main players in the period 2000-2017: Blockbuster and Netflix. It follows the growth and success of Blockbuster as the leader in the video rental segment, the challenge of Netflix with its mail-in option and Blockbuster's inability to respond. Finally, it closes with Netflix's transition from a physical DVD rental company to its current business centered around streaming and original content.
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Year: 2000-2017
Geographic Setting: Estados Unidos

Learning Objective

Highlight the difficulties of changing positioning strategies when a company focuses too much on its core competencies, disregarding the needs of the customers served.

From Blockbuster to Netflix: The Evolution of the Home Entertainment Industry

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"From Blockbuster to Netflix: The Evolution of the Home Entertainment Industry"