Title: Why Blockbuster Went Out of Business? Analysing its Pricing Model.
Headings: Why Blockbuster 🎦 Went Out of Business? An Analysis of its Business and Pricing Model
Why Blockbuster 🎦 Went Out of Business? An Analysis of its Business and Pricing Model
The standard analogue business model
Losing Credibility – One Reason Why Blockbuster Went Out of Business
Not understanding the customers’ needs – Another Reason Why Blockbuster Went Out of Business
Another reason for their eventual demise was their failure to lower prices across all top-selling categories (movies, snacks and beverages).
Blockbuster’s pricing and product strategy
How Netflix was born
What were the other reasons why Blockbuster went out of business?
Implications
Conclusion
〉〉〉 Contact Us for a FREE Consultation〉〉〉
Strategic Team Planning For Pricing & Commercial Teams!

Content: Blockbuster was obsessed with the new releases. They knew more people would rent the new movies because generally, it wouldn’t be available to buy in-store for a further 28 days. The customers had the option to rent, wait or buy the movie on DVD before the general release which costs around $70-$100 per title. This is substantially pricier than the suggested retail price. The original strategy required a huge CAPEX budget. Its main strategy was to open as many stores it could all over the country. That way it could gain a huge chunk of the market. This strategy did work for a period of time, but it also incurred huge operating costs. More stores meant more rental spaces and more people to hire. Also, it proved to be harder to keep track of revenues on each and every store.