Comments on: Netflix vs. Blockbuster: Round Two http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/ Ideas to Help Customers Build Your Business Thu, 18 Mar 2010 15:52:31 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Brett Hurt http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/comment-page-1/#comment-1557 Brett Hurt Sun, 24 Dec 2006 14:58:56 +0000 http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/#comment-1557 Leila, there is no doubt that Blockbuster Total Access is going to be preferred by those that want the in-store experience. Some venture capitalists and pundits at the height of the boom in 1999 predicted that the physical world stores would vanish to be replaced almost entirely by eCommerce. They said that only stores of "local value" like groceries and local culture (like turquoise jewelry in New Mexico) would remain. Obviously that didn't happen. However, I think when video game and movie downloading becomes easy in people's homes, there will be less people that opt to go into the store. But there will clearly be some that still choose to do so for at least a generation. Leila, there is no doubt that Blockbuster Total Access is going to be preferred by those that want the in-store experience. Some venture capitalists and pundits at the height of the boom in 1999 predicted that the physical world stores would vanish to be replaced almost entirely by eCommerce. They said that only stores of “local value” like groceries and local culture (like turquoise jewelry in New Mexico) would remain. Obviously that didn’t happen. However, I think when video game and movie downloading becomes easy in people’s homes, there will be less people that opt to go into the store. But there will clearly be some that still choose to do so for at least a generation.

]]> By: Leila Richardson http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/comment-page-1/#comment-1526 Leila Richardson Sat, 23 Dec 2006 17:14:51 +0000 http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/#comment-1526 I wanted to add my two cents and say that I am a mother of 3 and signed up with Blockbuster Total Access a few weeks ago with a 1 month free code to try it out (1944TA). I really like the balance between having DVDs delivered to my home and my husband taking the kids up to the store b/c they still like to walk around the store. With the recent addition of 1 free video game rental from the store, it really adds a huge customer benefit for our family and has saved us quite a bit of money. I wanted to add my two cents and say that I am a mother of 3 and signed up with Blockbuster Total Access a few weeks ago with a 1 month free code to try it out (1944TA). I really like the balance between having DVDs delivered to my home and my husband taking the kids up to the store b/c they still like to walk around the store. With the recent addition of 1 free video game rental from the store, it really adds a huge customer benefit for our family and has saved us quite a bit of money.

]]> By: Brett Hurt http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/comment-page-1/#comment-1385 Brett Hurt Mon, 18 Dec 2006 15:59:32 +0000 http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/#comment-1385 From the Shop.org blog, where this post also lives. dfloyd Says: December 12th, 2006 at 11:02 am Netflix has jumped past Blockbuster for more reasons than just lack of surcharges. Netflix doesn’t have to invest in expensive real estate. Blockbuster has always had to establish themselves in densely populated areas. These areas are generally pricy since they need to be in well-traveled residential/commercial locations. That’s a substantial operational difference. But to the consumers benefit, Netflix took advantage of the infinite flexibility of the web, the inexpensive costs of DVDs and cheap postal rates. The Netflix site is interactive and informative and you can dig through user comments to help determine what to request. And should the movie you receive be a dud, the payment structure makes it feel like less of a sting than when you get in your car, drive to Blockbuster and pay $6. Lastly, about 50% of the time, interacting with the Blockbuster staff is a frustrating experience. In this case, it’s what Netflix DOESN’T offer that contributes to its competitive advantage. Frankly, I don’t know how Blockbuster has survived this long! There must be quite a lot of impulse movie renters! Sadly, on-demand will likely finish Blockbuster off for good. Brett Hurt | Bazaarvoice Says: December 18th, 2006 at 11:12 am dfloyd, you make very good points. There is no doubt that they have some of the same advantages as many online businesses have over offline. Remember that they do, however, have 40 distribution centers around the U.S. that all need to run like clockwork (see the 60 Minutes video at Yahoo! to watch how this is done). Granted, this is easier than running 8,500 stores in 29 countries, but it still has some challenges: http://cosmos.bcst.yahoo.com/up/news?ch=334515&cl=1331588&lang=en To your second point, Netflix has executed brilliantly on its community initiatives. I regular use my “friend’s list” and their recommendations to find the movie that I want to rent next. Netflix’s recommendations engine has turned into a long-term strategic asset, and they are leveraging it as such. Netflix formed Red Envelope Entertainment to leverage this data asset by using it to find “long-tail” movies that will have a guaranteed, significant following. You can read more about this at Wired, I find it fascinating: http://www.wired.com/wired/archive/14.09/netflix.html From the Shop.org blog, where this post also lives.

dfloyd Says:

December 12th, 2006 at 11:02 am
Netflix has jumped past Blockbuster for more reasons than just lack of surcharges. Netflix doesn’t have to invest in expensive real estate. Blockbuster has always had to establish themselves in densely populated areas. These areas are generally pricy since they need to be in well-traveled residential/commercial locations. That’s a substantial operational difference.

But to the consumers benefit, Netflix took advantage of the infinite flexibility of the web, the inexpensive costs of DVDs and cheap postal rates. The Netflix site is interactive and informative and you can dig through user comments to help determine what to request. And should the movie you receive be a dud, the payment structure makes it feel like less of a sting than when you get in your car, drive to Blockbuster and pay $6. Lastly, about 50% of the time, interacting with the Blockbuster staff is a frustrating experience. In this case, it’s what Netflix DOESN’T offer that contributes to its competitive advantage. Frankly, I don’t know how Blockbuster has survived this long! There must be quite a lot of impulse movie renters! Sadly, on-demand will likely finish Blockbuster off for good.

Brett Hurt | Bazaarvoice Says:

December 18th, 2006 at 11:12 am
dfloyd, you make very good points. There is no doubt that they have some of the same advantages as many online businesses have over offline. Remember that they do, however, have 40 distribution centers around the U.S. that all need to run like clockwork (see the 60 Minutes video at Yahoo! to watch how this is done). Granted, this is easier than running 8,500 stores in 29 countries, but it still has some challenges:
http://cosmos.bcst.yahoo.com/up/news?ch=334515&cl=1331588&lang=en

To your second point, Netflix has executed brilliantly on its community initiatives. I regular use my “friend’s list” and their recommendations to find the movie that I want to rent next. Netflix’s recommendations engine has turned into a long-term strategic asset, and they are leveraging it as such. Netflix formed Red Envelope Entertainment to leverage this data asset by using it to find “long-tail” movies that will have a guaranteed, significant following. You can read more about this at Wired, I find it fascinating: http://www.wired.com/wired/archive/14.09/netflix.html

]]> By: Sharkelady http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/comment-page-1/#comment-1244 Sharkelady Wed, 13 Dec 2006 04:58:15 +0000 http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/#comment-1244 I felt I should reply to this. I was a former Netflix user and a few months ago switched to Blockbuster. A few days ago I learned how Blockbuster treats their employees and was horrified. I have since canceled my service and told them I would not use their store again. Go Netflix. I felt I should reply to this. I was a former Netflix user and a few months ago switched to Blockbuster. A few days ago I learned how Blockbuster treats their employees and was horrified. I have since canceled my service and told them I would not use their store again. Go Netflix.

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