Preview

Home Movie Rental Industry

Powerful Essays
Open Document
Open Document
2499 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Home Movie Rental Industry
Operations Management Principles
(MGM340-1302A-04)
Professor Charles Cullinane
Home Movie Rental Industry
Roxane Billiot
May 5, 2013

I. Introduction to home movie rental industry A. Netflix
1. Background
2. History B. Redbox
1. Background
2. History II. Operational objective C. Netflix
1. Mission Statement
2. Expectations D. Redbox
1. Mission Statement
2. Expectations III. Specific operational challenges IV. Metrics E. Customer satisfaction F. Cost G. Growth V. Industry challenges addressed VI. Conclusions H. Similarities I. Differences

VII. Applicability elsewhere J. Outsourcing K. JIT

Introduction
I believe that we all know a little something about the home movie rental industry even if it is just how to rent a good movie to watch at home. I can remember back when all they had were video stores and there were no such things as DVD’s, you could only get VHS or Beta tapes. That seems so long ago. Today there is no need to even leave your home to rent a good movie. In this paper I intend on explaining the operational objectives, specific challenges, metrics and industry challenges of two of the most popular forms of the home movie rental industry.
Netflix
People love to watch television; however, most of us would do away with commercials. As the world’s leading internet television network, more than 36 million people in over 40 countries can enjoy watching commercial free television for a low monthly fee. I’ve been a member of Netflix myself since 2008. There are several plans to choose from. I started out with renting one movie at a time with free streaming, and have changed my plan several times. At one time I was even getting four movies at a time to now only using the streaming plan, which is only $8.99 monthly. According to Francis Underwood, “Over the coming decades and across the world, Internet TV will replace linear TV. Apps will


References: Underwood, F. (2013, April 25). Look at the bigger picture. Retrieved from http://ir.netflix.com/long-term-view.cfm Netflix timeline. (2013). A brief history of the company that revolutionized watching of movies and tv shows. Retrieved from https://signup.netflix.com/MediaCenter/Timeline Redbox. (2013). Redbox fun facts. Retrieved from http://www.redbox.com/facts Hastings, R. (2004, October 12). The mission statement, vision, promise and values of Netflix. Retrieved from http://danbraydesignuni.wordpress.com/2012/10/04/netflix-mission-statement/ Coinstar. (2013). Reimagining responsibility. Retrieved from http://www.google.com/url?sa=t&rct=j&q=coinstar Redbox mission statement&source=web&cd=5&cad=rja&ved=0CEsQFjAE&url=http://www.coinstarinc.com/media/download/csr_report.pdf&ei=FfGHUY-sCIrJ0gGN0IGoCA&usg=AFQjCNFr-SEZwHFsE-dDZ884E0oOOwE5IQ&bvm=bv.45960087,d.dmQ Indiviglio, D. (2010, September 27). 3 big challenges facing Netflix. Retrieved from http://www.theatlantic.com/business/archive/2010/09/3-big-challenges-facing-netflix/63637/ Van Grove, J. (2009, December 8). Redbox: The enemy of the entertainment industry? [study]. Retrieved from http://mashable.com/2009/12/08/redbox-study/
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Block Buster
    • 4592 Words
    • 19 Pages

    Block Buster

    The case covers Blockbuster’s emergence in the video rentals market. After detailing the intricacies of the video rental market, the case takes a deeper dive into Blockbuster’s business model, based on brick-and-mortar locations throughout the US. This costly infrastructure has slowed the entertainment giant’s growth in an industry that has rapidly transitioned from the traditional store-based model, to mail rental and video-on-demand alternatives. The rapid transition of customer demand and the emergence of Netflix (Blockbuster’s main competitor) has incited Blockbuster’s rapid entrance into the video-on-demand market through the acquisition of Movielink.…

    • 4592 Words
    • 19 Pages
    Good Essays
    Read More
  • Good Essays

    Marketing Plan for Redbox
    • 924 Words
    • 4 Pages

    Marketing Plan for Redbox

    Redbox’s primary target market proves to be the busy, I don’t have time to visit Blockbuster or login to Netflix type of consumer. There kiosk machines are located in common shopping locations which lend themselves to the “lazy” consumer. Furthermore, Redbox is also targeting the casual movie watcher who isn’t necessarily intending on renting a movie. In a way Redbox has turned renting movies into an impulse item. As a result, Redbox provides consumers with a service never seen before and has emerged as one of the largest DVD rental chains in the world.…

    • 924 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    BUS 219 Netflix Final Paper
    • 4031 Words
    • 10 Pages

    BUS 219 Netflix Final Paper

    Cited: Aaron, Bay. "Behind the Scenes at Netflix." Weblog. Wordpress.com, 7 May 2010. Web. 29 April 2014. <http://ripmacdre415.wordpress.com/2010/05/07/behind-the-scenes-at-netflix/>.…

    • 4031 Words
    • 10 Pages
    Better Essays
    Read More
  • Better Essays

    MBA611 week 1 assignment Netflix 2
    • 938 Words
    • 3 Pages

    MBA611 week 1 assignment Netflix 2

    Netflix is the world’s leading Internet television network with over 50 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. (Netflix, 2014) Netflix has changed the way that viewers in the U.S. watch movies with its revolutionary business models. It is now one of the most recognizable online movie rental services in the world. Visionary and charismatic leadership is matched with a keen, professional management team to steer the company’s rapid growth and new initiatives.…

    • 938 Words
    • 3 Pages
    Better Essays
    Read More
  • Better Essays

    Redbox Case Analysis
    • 1272 Words
    • 6 Pages

    Redbox Case Analysis

    This analysis will examine the business model and financial position of Coinstars subsidiary company, Redbox. It will focus on the current and expected future situation, as well as provide recommendations for the critical challenges of continued growth of the company’s market share in the DVD rental business. The DVD rental industry is rapidly changing due to the continuing advancement in developing video technology. For that reason, the recommendations include both the continue development and expansion of DVD rental kiosks as well as developing a web based service to continue to compete in the highly competitive movie rental industry. The recommended actions are as follows:…

    • 1272 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Blockbuster Pricing Strategy
    • 737 Words
    • 3 Pages

    Blockbuster Pricing Strategy

    The movie studios and the video rental stores have combined stakes in the success of a movie. A successful movie ensures higher returns from exhibitions in theatres and increased rental revenues by…

    • 737 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Stock Pitch of Netflix
    • 2910 Words
    • 12 Pages

    Stock Pitch of Netflix

    The market for entertainment video is intensely competitive and subject to rapid change. New competitors may be able to launch new businesses at relatively low cost. Many consumers maintain simultaneous relationships with multiple entertainment video providers and can easily shift spending from one provider to another. Netflix’s principal competitors include: HBO GO, Apple’s iTunes, Amazon’s Prime Video, Hulu.com, Redbox and Blockbuster.…

    • 2910 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Netflix Case Analysis
    • 3259 Words
    • 14 Pages

    Netflix Case Analysis

    This report analyzes the strategic and financial performance of Netflix in the movie and video stores industry. Through an examination of the video retailing industry’s five forces model, driving forces, key success factors, financial statements, and SWOT analysis, we have been able to clearly articulate Netflix’s position in the competitive market and develop recommendations for the foreseeable future.…

    • 3259 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Better Essays

    Redbox Case
    • 1195 Words
    • 5 Pages

    Redbox Case

    1. What are the chief elements of Redbox’s strategy? What are the key success factors of this industry?…

    • 1195 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Redbox Current Situation
    • 669 Words
    • 3 Pages

    Redbox Current Situation

    Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, Redbox is currently surpassing its competitors with its number of self-service kiosks. Redbox’s growing popularity is facilitated by its physical distribution, which places the kiosk in high traffic locations such as Wal-Mart, Kroger, McDonalds and Walgreens. Due to Redbox’s standing as the progressive option for DVD rental, its decision to target the 18-24 year old in household’s demographics. This demographic embodies the idea of innovation, experimentation, and dependency on technology, all of which are imperative to transform an introductory product into a nationwide brand. The following report provides secondary and primary research in order to construct an accurate glimpse of Redbox and its emergent status within the 18-24 year old target market of the DVD rental industry. This report includes the description and results of eighty self-administered surveys completed by samples of the target market. Based on an analysis of these results, the report concludes with recommendations designed to assist Redbox in more effectively reaching its 18-24 year old target market. This targeted market share common interest such as hobbies, taste in movies, and games they play. 63% of the family oriented People that range from 33-44 have at least one child, 51% have a house hold of at least four people. The primary market is Low income –Middle Class, $30-60k whether in the City or Suburbs. Redbox targets people with the same motivations and aspirations living a comfortable life with lots of family security. That cares about financial security, safety, social etiquette, time, and trust. Their lifestyle is slightly conservative and old-fashioned. When it comes to education levels 43 percent of Redbox target market goes to people with a college degree. 44 percent goes to people without one and 12 percent goes to student in graduate programs.…

    • 669 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Redbox: Marketing Within the Box
    • 1637 Words
    • 7 Pages

    Redbox: Marketing Within the Box

    REDBOX is a “Coinstar Company that rents DVDs for a dollar a day through vending machines in more than 25,000 convenience store, supermarkets, and fast-food restaurants” (Kolter and Armstrong, 2012, p. 370). REDBOX was the first of its kind to offer affordable daily DVD rentals from a kiosk. REDBOX is still in competition with Blockbuster and Netflix in the DVD rental market. However, REDBOX is a step ahead. They realize the high cost of rental and membership fees consumers can endure, so they offer a unique distinguishing marketing tool, $1 a day rentals. Imperative to their success, REDBOX uses a sophisticated software system designed to skillfully deliver DVDs to consumers instantly at the touch of a button. REDBOX does not anticipate cutting back on its products or kiosks; instead they are diligently trying to fulfill higher demands from consumers by using the future of technology. “REDBOX operates more than 24,000 DVD rental kiosks in McDonald’s, Walmart, Walgreens,…

    • 1637 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Online Experience
    • 657 Words
    • 3 Pages

    Online Experience

    People are turning to online entertainment more frequently. Netflix is one of the most popular streaming and the visual communication it presents is reaching more people in a fresh self-service manner. Netflix rules the industry with over 30 million views a month compared to several other internet visual communication streaming sites that have a lower views (Tejada, 2013).…

    • 657 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Netflix Marketing Promotion
    • 1592 Words
    • 7 Pages

    Netflix Marketing Promotion

    3. ^ Goldstein, Gregg (July 22, 2008). "Netflix closing Red Envelope". The Hollywood Reporter. Retrieved August 11, 2008.[dead link]…

    • 1592 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    External Trends In Movie Theater
    • 505 Words
    • 3 Pages

    External Trends In Movie Theater

    What will it take to get customers into movie theaters? It is uncertain over how many people want their movies delivered; mostly in today’s economy people would rather have convenience over quality. Even now that the technology is getting far most advanced they don’t need to watch a movie at the theater if they can enjoy it in their own home. To get more people to attend a theater one must consider the external components, external trends, and what stake holders are important to movie theater chains.…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Netflix
    • 1642 Words
    • 7 Pages

    Netflix

    Netflix has continued to prosper in an incredibly fast-paced industry, still with so much room for growth (Appendix 2). With more than two-thirds of all households now owning a DVD player, Netflix caters to all different demographic groups across the United States. They have even reached a younger generation by syncing with the XBox Live gaming system. Unfortunately, there are some factors that keep Netflix from just continuing with what they are doing. Blockbuster has positioned itself in a relatively similar manner to Netflix, causing customers to second-guess which one is better.…

    • 1642 Words
    • 7 Pages
    Better Essays
    Read More

Related Topics