MKTG 2030 Lecture Notes - Lecture 9: Carl Icahn, Renting, Reed Hastings
15 Mar 2016
School
Department
Course
Professor
Document Summary
A look back at why blockbuster really failed and why it didn"t have to htp://www. forbes. com/sites/gregsatell/2014/09/05/a-look-back-at-why- blockbuster-really-failed-and-why-it-didnt-have-to/2/#63bd708c3a2f: in 2000, reed hasings (founder of neflix) proposed a partnership with blockbuster: Neflix would run blockbuster"s brand online and blockbuster would promote neflix in stores. Hasings was rejected: neflix is now worth billion while blockbuster went bankrupt in. 2010: when hasings approached john anioco (ceo of blockbuster), Blockbuster was on top of the video rental industry, had thousands of locaions, millions of customers, massive budgets, etc. So it"s understandable that john said no to giving away the brand he worked hard to make: blockbuster was highly dependent on punishing customers who brought in late movies with late fees. Neflix instead had lower prices due to not having any retail locaions and ofered greater variety because they could mail it to them. Also, they charged subscripions instead of per rental prices. This eliminated the unwanted late fees and pressure of returning movies.
