Sunday, November 17, 2013
The video rental business as we used to know it
As you must have read this somewhere that the Blockbuster® the used to be biggest video rental store is closing its entire remaining store and will concentrate on the streaming business. But the franchises with their names will remain open as they are just closing the ones with the corporate ownership. Now you would what is Blockbuster® well they were the kings of video rental business and they drove many local video stores out of business with their huge selection and big spacious stores. And I did only once went to their stores, with its wide variety came the hated late fees that it used to generate tons of money when people forget to return the rental on due date. And the fees were heftier than what with the rental money you can get now. These were the times when the Broadband and streaming side of the movies were not as widely available and popular. This was the time that many people despite paying hefty late fees used to swarm Blockbuster® stores because of its wide selection. Although neighborhood video stores were also competing with it but they were declining and were unable to keep up with the big money and hence this juggernaut was unstoppable. But as the new technology came to the market with the help of streaming and new players entered the picture with no late fees, blockbuster® started to lose market share. Netflix ® became a huge competitive since it had one low monthly fees and unlimited rentals with no late fees.