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On the other hand, Blockbuster was founded in 1985 when videocassettes, DVD, and video game rentals were popular. The company was world-renowned leader in the movie rental business. It had grown to over 9000 franchise stores in United States. Blockbuster did a partnership with DIRECTV in 2001.
Strategic Issues:
o Video-on-Demand was a threat to Netflix because it could kill the market for DVD rentals.
o By dropping prices of their monthly subscription in the starting of 2005, stock prices went down from $35per share to $10-$12 per share.
o Netflix provided their customers with “Cinematch software” which enables their customers to personalize their movie lists...
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