From Blockbuster to Video on Demand: Distribution Channel Innovation in the U.S. Video-Rental Industry

Published 29 Nov 2010
Reference 5741
Topic Strategy
Region Global
Summary

This case traces the evolution of the video rental industry over the last 20 years. It outlines the rise and fall of different business models, highlighting delivery innovations by Netflix, sourcing innovations by blockbuster, and the technological innovations brought about by advances in the distribution medium.

Teaching objectives

The case illustrates the evolution of different business models and business processes in the video rental industry. It provides an excellent setting to strategically and analytically examine different business model and business process innovations. Concepts of distribution system design, incentive conflicts and their resolution, and strategy developments are illustrated.

Keywords
  • Distribution Channels
  • Video Rentals
  • Strategy
  • Startups
  • Entrepreneurship
  • Netflix
  • Blockbuster
  • Business Models
  • RD1110
  • AR2010
  • AR1011