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Generally Accepted Accounting Principles and Dish Network

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Generally Accepted Accounting Principles and Dish Network
Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership

2. What forces are driving changes in the movie rental industry and are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability?

-The economy is one of the reasons why rental industry went down. Less people are able to rent a lot of movies.
-Second and main reason that drives the change is Internet and streaming of video. Suddenly on the market we have some companies they offer unlimited watching movies for same price. One of them is Netflix.

5. What is Netflix’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Netflix is taking? What type of competitive advantage is Netflix trying to achieve?

Through my research about these two competitors I discovered they work completely different and they are using two different strategies. I think Netflix has much better strategy than Blockbuster competitor. Netflix has complete development network. They developed Development Kit for developers where you can use their API functions and integrate their service wherever you want. So, it is not coincidence we have Netflix on each TV as application channel. It is not coincidence we have Netflix everywhere; in WII, Xbox, PlayStation, Google TV, Apple TV, inside Blue-ray players, and on each PC and Mac. That is the part of their strategy and that helped to Netflix get more than 23 million streaming members globally and become the world's leading Internet subscription service for enjoying movies and TV shows. For $7.99 a month, Netflix members can instantly watch unlimited movies and TV episodes streamed over the Internet to PCs, Macs, Gaming consoles, and TVs. On the other hand Blockbuster I think made startup bad strategy. They actually started streaming service together
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