I was hooked to NetFlix when they launched – Of course, need I say I love movies? NetFlix kept my appetite going for many years. When BlockBuster made a move to offer online rentals, I had no reason to notice. When BlockBuster made a move to exchange online rentals for in-store selections, I was impressed. As a student and practitioner of strategy, I think this is one of the brilliant business moves. Right when everyone was dismissing video stores as useless brick and mortar assets, Blockbuster brought an innovative solution that converted a supposedly wasteful asset (stores) into a strategic one.
Alas – BlockBuster couldn’t sustain its strategic thinking. If you search for Blockbuster in the recent news, there are going down the drains – possibly bankruptcy soon. Among other reasons, NetFlix is definitely one big sucker kicking their butts.
I can’t stop praising NetFlix. Their collection of movies, documentaries, TV shows etc is more than enough for any above average movie/TV buff. They offer streaming at the same cost (Blockbuster was charging separately!). They offer streaming to TV via Wii – no extra cost or extra hardware, Do you want more? Now, I can watch NetFlix streaming in my damn iPhone – again no extra cost. I’m loving it. I really think future of customer service and retention is this – offer your products and services around the customer’s convenience.
I imagine the guys in the boardroom of BlockBuster still think they know what they are doing. I bet they don’t. As they were ignoring NetFlix, another innovator – RedBox is killing them. If you ever think of renting a movie in BlockBuster, think again…and perhaps, look around, you will find a RedBox and that’s all you need for the night. In my opinion, Blockbuster is letting RedBox and NetFlix kill it, rather consciously. Pick any business consultant from the street he could tell you to how to handle it (leverage you brand strength, buy one or both of them or offer the same services – just ridiculously better and cheaper).
These guys are all in the dog-eat-dog business so let’s face it and fight to win. Watch out – Folks are already saying NetFlix won’t have this business for too long. I have been expecting NetFlix should buy RedBox. Then, YouTube, Apple, Amazon, Hulu and a host of others streaming movies, TV shows and user content left and right. Besides, TVs already have built-in internet so streaming is going to be as simple as flipping channels. So I won’t be surprised if NetFlix gets killed or sucked into Amazon or some other big dogs.
But something tells me these guys are smart and will continue to innovate and play the game. As for rest of us, let’s enjoy those documentary on NetFlix that we would otherwise never to get see and along the way, watch for some real world lessons on business strategy.