This paper discusses the marketing strategy of Blockbuster Entertainment Corporation, the market leader in the United States and abroad for the rental of videos and associated products.
Abstract This paper explains that Blockbuster achieved its success through focused goals, effective marketing strategies, a clear knowledge of the market attained through market research, expansion and pricing according to marketing demands, and an involvement with the community. This paper relates that, in 2002, Blockbuster expanded its gaming market by purchasing the UK-based video game retailer, Gamestation, resulting in the development of Game Rush, a store-in-store concept to rent, sell, or buy new and used game software and hardware, which shares an entrance with Blockbuster stores. The paper relates that Blockbuster's marketing philosophy is closely intertwined with its concept of serving humanity through many service programs, stressing diversity in the workforce and customer base, sponsoring the filmmakers? category of the NAACP's ACT-SO Program and minority film festivals, and community projects, such as Boys & Girls of America and Children's Miracle Network.
Table of Contents
Blockbuster's Marketing Concepts and Strategies
Marketing Style and Philosophy
The Success of Blockbuster
From the Paper "Blockbuster's increased focus on retail for example has resulted in strategic planning (Desjardins, 2003, May). This includes a variety of newly created programs, as well as expansion in terms of in-stores selections of movies, games and equipment. Rent subscriptions, movie and game trading, as well as store-in-store concepts, are some of the new strategies to attract customers and ensure the return of existing customers. Specifically, the new concepts include the Blockbuster Freedom Pass, a rental subscription program that allows the customer to rent an unlimited supply of movies without restrictions such as return dates or extended viewing fees."
Abstract This paper analyzes industry life-cycle stages of the video-rental market, focusing on Blockbuster, and assesses the inefficiencies in the new industry stage that opened the door for Blockbuster's market entry. It also discusses how well Blockbuster exploited its competencies based on efficiency, quality, innovation, and customer satisfaction across the growth and mature industry stages. Finally, it looks at Blockbuster's likelihood for survival in the final stage of the industry life cycle, mergers, and the disappearance of inefficiencies.
From the Paper "Findings are that Blockbuster initially delivered phenomenal efficiency, quality, innovation and customer satisfaction to overcome problems in the new industry stage. Although it would later struggle across each of these areas it would eventually recover, but with one fatal exception, technology innovation. Miscalculations in technology adoption rates and inadequate middleman strategies to participate in pay-for-view and video-on-demand services leave the company vulnerable in the final stage of the industry lifecycle for video rentals. Blockbuster's largest concern is make up for lost ground in technology innovation."
Abstract This paper looks at Blockbuster's efforts to win a larger share of the video rental market while, at the same time, continue to retain its existing customers. The paper examines Blockbuster's strategies for handling competition from other video rental companies, which include changing the way it bought movies from suppliers and introducing different pricing policies. The paper goes on to discuss other problems Blockbuster continues to face because of stiff competition and the inability of its current marketing and business strategy to handle these problems.
From the Paper "Blockbuster has 2800 video stores in 28 countries around the world, many of which are franchises. Its membership is thought to number 40,000,000+ people. Blockbuster manages $5 billion in annual sales, and is the top retailer for movie rentals in the US. Recently, however, it has been facing tough competition, in view of the fact that the five major Hollywood movie studios are planning to rent movies to college students directly, and in view of the fact that new web-based movie-rental companies are starting up, for example, Netflix, which offer more flexible, movie-on-demand services. We will be discussing more about this competition that Blockbuster faces later."
This paper is a comparative analysis of Blockbuster Inc. and Netflix Inc., both movie rental companies, using financial ratios based on their respective income statement information covering the five-year period of 2001 to 2005.
Abstract This paper uses four types of financial ratios---leverage ratios, liquidity ratios, efficiency ratios and profitability ratios---to summarize large quantities of financial data from Blockbuster Inc. (BBI) and Netflix Inc. (NFLX) and to compare their performances. The author points out that, because Blockbuster Inc. carries the heavy weight of debt, if Blockbuster loses market share and revenues are spread thinner, they will have a hard time repaying that debt. The paper states that current trends in this industry are in Netflix's favor because more and more people are opting not to drive to their local video store but rather have several selections mailed to them at once; however, both companies are challenged by companies that sell movie downloads. Many tables.
Table of Contents
Leverage Ratios
Total Debt Ratio (Debt to Assets) = Total Liabilities / Total Assets
Liquidity Ratios
Current Ratio = Current Assets / Current Liabilities
Quick Ratio = Cash + Marketable Securities + Receivables / Current Liabilities
Net Working Capital to Total Assets Ratio
Efficiency Ratios
Asset Turnover Ratio = Sales / Average Total Assets
Profitability Ratios
Net Profit Margin = Net Income / Sales
Operating Profit Margin = Net Income + Interest / Sales
Return on Equity = Net Income / Average Equity
Conclusion
From the Paper "In liquidity ratios there is a major focus on current assets. Efficiency ratios judge how effectively the company is using them. The asset turnover ratio shows how hard the companies' assets are working for them or against them. [Table: Yearly Asset Turnover Ratio] Blockbuster as expected has a steadily increasing Asset Turnover Ratio as their assets are older and more depreciated. Netflix and their assets are young compared to that of Blockbusters' and is evident in their highly erratic ratios. You can see spurts of growth between each year. Their numbers are greater in response to having less overall total assets than Blockbuster and their thousands of stores possess."
Abstract This paper includes the following issues 1) Blockbusters background 2) Their company structure 3) Their management structure 4) Their operational structure 5) Their competition and an industry overview 6) Their current operating strategies and 7) Their future plans.
Abstract The paper relates that NetFlix has attained market leadership in the online DVD subscription marketplace despite Blockbuster having the broadest market presence of any entertainment rental retailer globally. The paper compares the strengths, weaknesses, opportunities and threats facing these companies and assesses the trends in the industry.
From the Paper "NetFlix is credited with creating the online DVD subscription service business model, when the company launched its online service in 1999. Blockbuster, the global leader in video rentals has approximately 9,000 stores operating in 24 countries, launched its own online DVD subscription service in 2004. During the five years NetFlix was the sole provider of online DVD rentals, the company attained a subscriber base of approximately 7 million, was able to attain profitability, and has significantly re-vamped its internal logistics and order management systems for high efficiency and low cost of operation."
A look at the effects of the diversification of the film studio into a multifaceted conglomerate and how the film as a text and marketing asset, has come under the influence of product markets formerly unrelated to it.
Abstract This paper examines how the conglomeratization of film studios has affected the way the Hollywood Blockbuster is marketed. It focuses on the movie "Jurassic Park" and asks how this might demonstrate the place of the film as part of a multimedia package, a film whose marketing campaign influences the content and mise-e-scene and transforms it into an advertisement for the vast range of tie-ins associated with it.
From the Paper "The diversification of the film studio since the 1960s, has had a vast and obvious effect on the form of the Hollywood Blockbuster. Diversification not only decreases the financial risk of the movie for the studio, but also alters the role of the film and its relationship with the products associated with and used to promote it. Conglomeratisation, as a means of decreasing the risk of financial loss in a particular market for the conglomerate, has transformed the film into a multifaceted commodity. The film package and its components are used as avenues for obtaining greater profits. Universal Pictures and the film Jurassic Park demonstrate how ancillary markets, beyond the actual film product, together create an intricate multimedia commodity, which ideally serves financial rather than creative interests."
Tags:blockbuster, conglomeratization, distribution, jurassic, mechandise, park
Abstract This paper discusses a breach-of-contract civil suit filed by Walt Disney/Buena Vista Home Entertainment against Blockbuster Video. Though the case was settled out-of-court through arbitration, this analysis discusses the details of the lawsuit and issues related to it and civil lawsuits.
Tags: videocassettes, revenue sharing, contract law, videos, plaintiff, burden of proof, legal system
Abstract In this article, the writer maintains that the British film industry often frames itself in respect to its counterpart, the American film industry. The writer notes that movies made in the United States typically gross larger sums than British films, a point that has long motivated the British film industry to identify American movie-making as a more profitable model. The writer argues, however, that the emulation of American films by British studios has typically fallen short of projections: the British film-going audience, which hungrily devours American blockbusters, is surprisingly hesitant to engage in films that are made in Britain and utilize American-style plots, cinematography, acting, and special effects.
Outline:
Introduction
British Film Media
Issues of Consideration in British Film
British Film and American Film
Summary
From the Paper "When this process occurs, the value of a film made by a British film studio is challenged. The outcome is problematic, as the film itself may contribute to the British film industry as a composition with significant artistic merit, but the lack of financial incentives indicates that there is a strong potential for the film to get "lost" in the cinematic archives. Films that have permanency within an audience are not necessarily those with the greatest intrinsic merit but are instead those that have had backing through a strong studio and have created a market identity through advertising, widespread distribution, and so on. A film that communicates a strong message or has profound artistic composition will not necessarily become a permanent achievement in the film industry, and for most investors and studios an obscure picture might as well have never been made."
This paper discuses the supply chain management strategies of the movie rental industry and how it applies to their to eBusiness approach especially for companies such as Netflix, Blockbuster and Intelliflix.
Abstract This paper explains that a supply chain covers all aspects of component and service production. The author points out that eBusiness has helped supply chain management through the automation of tasks, which leads to reduced costs for all companies, increased efficiency and added timeliness of component supply. The paper relates that the movie rental industry has been remarkably slow to adopt eBusiness strategies especially when considering that the industry product is technology based. The author states that a rudimentary and fragmented evolution of the supply chain in this industry has created a patchwork of delivery methods to the end user. The paper reports that, in 1998, Netflix revolutionizes the industry with the first online DVD rental service, which allowed the company to eliminate the liability of retail space expense and customer queues.
Table of Contents:
Supply Chain
Industry Supply Chain History
Netflix
Blockbuster Intelliflix
From the Paper "Utilizing automated ordering helps reduce costs for all the companies in the supply chain as companies do not have to devote human resources to performing those tasks of placing, receiving and processing orders and processing invoices and payments. Another benefit of eBusiness websites is that companies can monitor their orders to see what stage it is at and track the delivery through websites such as Fedex.com or UPS.com which are two shipping websites that offer delivery tracking."
Abstract This paper discusses the 1977 film, "Star Wars," directed by George Lucas. It discusses the plot of the film and the characters as well as why "Star Wars" fits into the modern blockbuster category. The paper also focuses on directorial control in the film and the innovative technology that was used to produce the special effects in the film.
From the Paper "There is a "dark side" to the film's unexpected success, its technological innovation, and the conviction of a director who believed in his product (Sibley, 2007). "'Star Wars' also spawned a massive merchandising empire that includes everything from books and comics to toys, models and several television series. By 2005, according to Forbes magazine, the 'Star Wars' franchise, including movies, television programs, toys, comics, books and other merchandise had earned nearly $20 billion" (Sibley, 2007). From then on, merchandising and the potential for sequels, rather than artistic quality of the film product, or even the storyline of a popular product was the primary interest of studios. Selling toys rather than crafting storylines became more important--and one might say that 'coming to a toy store near you' has become just as important to a movie's bottom line as showing a strong opening in the theaters."
Abstract The paper analyzes the book which is an exploration into the history of African-American images in the film industry, from silent films to 20th Century blockbusters. The paper shows how Bogle discusses the type casting of blacks into the categories described in the book's title, as well as how he takes his investigation deeper into an examination of the American film industry as a whole, and addresses social, historical, and cultural contexts in which we must examine all screen productions.
From the Paper "Bogle provides much-needed insight into the origins of black film characters. First appearing on the screen in 1903, the "blackface" had already become the standard representation of the African-American on stage. Character typing and stereotyping began early in Hollywood; by the 1920s the major "boxes" to which black characters could fit had been created and, according to Bogle, still remain. At first it seemed that the author would overanalyse and generalize each role just to make it fit one of the ?boxes.? But soon it became obvious that Bogle, rather than placing modern politically correct interpretations on decades-old films, makes clear what should be obvious even to the occasional filmgoer."
Abstract The mega-mergers of the media world in the past few years are a by product of economic change and a powerful agent of further transformations. As the 1980s began, there were about 50 companies that controlled most of the business in magazines, newspapers, radio, television, movies and books. By 1992, that number had dropped to 23 companies. This paper examines the effect of these mergers on news reporting, bias and questions how they affect free expression of speech. The paper shows that critics of these mergers emphasize that America's press has become largely one voice, representing not a broad range of diverse publics but a small and powerful minority.
From the Paper "The Federal Communications Commission is considering when and how to respond to a petition filed by the Newspaper Association of America (NAA) asking the regulatory agency to ease 25-year-old restrictions on newspapers owning television or radio stations in the same market.
If the FCC decides to lift the ban--put in place to ensure competition within markets--it could accelerate the consolidation of media outlets and enable marketers to buy advertising packages across formats.
The most frequently occurring frames were financial benefits to the companies involved and the mere size of the merger."
Abstract This paper examines how in his book "From Savage to Nobleman: Images of Native Americans in Film", University of Wisconsin ? Eau Claire professor Michael Hilger investigates the portrayal of American Indians in movies. Hilger watched hundreds of movies, from silent era epics to modern-day blockbusters, to determine the manner in which Hollywood depicts Indian characters. It discusses how Native Americans comprise an extremely small portion of the nation's population and how because many people do not have the opportunity to interact with Native Americans, their views and beliefs about them are typically shaped by the racial stereotypes found in movies. It analyzes how Hilger attempts to destroy many of the false impressions of Indians in the movies by recognizing them for what they are, lies.
From the Paper "Hilger's writing style is very methodical. Before entering into the examination of films featuring Indians, he sets forth the specific criteria he used for determining into which category a particular depiction of Indians should fall. One such "measuring stick" was the Indian's attitude toward whites. Typically, savage Indians are ?enemies to the whites and obstacles to westward expansion,? while Noble Red Men "are friends to the whites and realize they must adapt to white culture or face extinction" (Hilger 3). Hilger also characterizes Native American men as either Savages or Noble Men by their attitude toward white women: Noble characters are attracted to the white women, while Savage characters, "driven by their hostility, capture and rape white women" (Hilger 7-8). Hilger identifies a number of other general characteristics of both the Noble and the Savage Indian and describes these traits at the beginning of the book."
Abstract This paper addresses the Cohn Brothers' film "Barton Fink" in terms of its relevance to the term "subjective reality". Here, "subjective reality" refers to the non- conventional way of presenting the film, rather than the standard narrative provided by the Hollywood blockbusters.
Tags: FILM STUDIES / MOVIE REVIEWS, ANALYSIS, CRITICISM, subjectivity barton fink
