I like to watch movies occasionally. To satisfy my occasional needs, Blockbuster was perfect for me. There was a store located few blocks away from where I live. I used to stop by every weekend or so and pick a couple of movies. Well, that was before this store had been closed. I was not sure yet if I have to switch to any other service. This week’s article, however, reminded me this Blockbuster’s store. Could this store be one of the victims of NetFlex’s competition?
The internet platform has changed the face of many industries. Many middle men have lost their importance due to the internet channel. It was not long ago that we needed to be on the phone for minutes, to make our airline reservations with our travel agents who were equipped with reservation systems. It was not long ago that we had to fully depend on brokers to deal with our stock transactions. The internet technology has created many detours to its users. The need for those middlemen has dwindled significantly. Given this trend, I could not understand why this powerful channel was undermined by Blockbuster’s management. To make things worse to Blockbuster, Netflex was continuously revising its business model and value proposition to the point where its customers think about Netflex when they think about movies. Unless Blockbuster comes up with some innovative content delivery system, it will not be too far to see it leave the market.
