Facing extinction

There's plenty of talk about bookstores closing down as e-readers and the internet make books available electronically and more conveniently, but what about what's happening in the movie rental industry?


 
On-demand internet streaming media and DVD rental providers such as Netflix allow users to rent DVDs or stream movies by paying online. This also works out cheaper for the consumer when comparing the prices paid for movie rentals from bricks and mortar rental stores.

Do you think this threat will cause the extinction of video rental stores?
An IBIS World report stated Blockbuster and Video Ezy closed 270 stores in the past 4 years Australia-wide. Have a look at this article.


Despite this though, some physical rental stores feel they can compete in terms of service and diversification, if not price. 
In my opinion, although the bricks and mortar stores may have to move online eventually, for the time being they should operate as they do currently and add an online rental service to stay relevant. This is what Blockbuster has done, and a strategy the fashion retail industry is picking up on quickly as well.
Here's a video comparing prices and service value of Netflix and Blockbuster.

Is there anything bricks and mortar stores can offer that online rental providers can't?

Are there other strategies for rental stores to stay relevant and competitive in the market?

Why don't they have a website??

It seems like almost every product I consume is made by a business with web presence. So is it crucial to be present in the world wide web for businesses, in order to be effectively competitive in today's tech savvy, internet addicted society?

What if you're not on the web?
- Are you considered less relevant and less innovative perhaps?
- Are you operating less efficiently than competitors that do have web presence?
- Are you missing out on invaluable branding/advertising opportunities?
- Are you missing out on business with a global market?


I'd answer 'yes' to these questions in most cases (check out these 20 reasons for web presence). Whether it's a commercial or industrial business, I feel it is important to have some form of effective web presence in order to compete well, especially in the long run. I also think innovation, whether its product, process, organisational or marketing innovation, is a big key to success in today's global business environment and I think web presence may be an enabler of innovation.

According to an Australian Bureau of Statistics report, the higher the intensity of Informations and Communications Technology (ICT), in particular web presence, the higher the likelihood of a firm being an innovator.

Although the report doesn't necessarily talk about consumer perceptions, do you think we could assume that businesses with higher web presence are more likely to be perceived as more innovative?

I've heard of some arguments that web presence is not necessary for business success and some business choose to focus resources on their physical product and operation offline, but it seems the benefits of being online significantly outweigh those of having no web presence. Even more than that, I feel it's too risky for businesses to operate without it if competitors do strategise with web presence.

What do you think?