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?
No comments:
Post a Comment