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From Blockbuster to Netflix: The Evolution of the Home Entertainment Industry
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Reference: SI-201-E
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Year: 2000-2017
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Number of pages: 13
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Geographic Setting: Estados Unidos
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Publication Date: Mar 23, 2018
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Source: IESE (España)
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Type of Document: Case
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.
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.