Blockbuster was a famous American-based video rental industry. They were succeeding in their business as they provided an option to their audience to rent and watch any Hollywood blockbuster movies on the DVD player instead of buying them. Their customers were happy and satisfied as they were fulfilling the needs of the audience in a budget-friendly manner.
But where did it go wrong?
According to the CBBE model, here are some of the reasons for the downfall of the brand:
- IMPOSING LATE FEE-
Blockbusters gets obsessed with charging a late fee from their audience. They followed a rigid late fee strategy that is whenever a customer is late in returning the DVD they had to pay a substantial late fee. The standard late fee was $1 per day for the late movie rental and this actually multiplied the cost of watching a movie in your home. This does not make sense to their audience and they seem to be annoyed with this.
- NOT UNDERSTANDING THE NEEDS OF THE CUSTOMER-
Another reason Blockbuster ran out of business was not acknowledging the needs of their customers. For any business to be successful it is significant to value your customer’s opinions and feedback so that a brand or a business can actually work on them to improve their customer’s experience but Blockbuster did not welcome and appreciate their customer’s feedback as a result their audience felt detached with the brand.
- NOT ACQUIRING NETFLIX-
The biggest mistake made by the brand was declining to buy Netflix when it was just recently launched. As Netflix came up with new ideas and tactics to meet the demands of the customer in the changing environment, Blockbuster did not observe the dynamic atmosphere of the business world and continued with its old strategy which led to its downfall. If the company had accepted the offer from Netflix, it would have had revenue in billions.
Will BLOCKBUSTER be forgotten in 10 years? Why or why not?
The company’s website has made a comeback after decades in March 2023, which is giving hope to their former customers and the website Blockbuster.com now shows the video chain’s logo and a cryptic phrase: “We are working on rewinding your movie.”
While on a mobile device, it says, “Be kind while we rewind.”
Significantly they have not made any official announcements for their comeback. But reactivating their website, social media, and a superbowl commercial is a hot topic among fans.
However, their Twitter post says something else:
In my opinion, there is a possibility that the company will make a comeback with new maneuvers and will be successful in its objective. The recent activation of their website and social media gives a hint of coming back into business, it may take time as making a fresh start is not an easy task.
Since Blockbuster was a movie rental giant in the DVD and CD era of media sharing, it is linked with good times that many consumers remember from their childhood and growing up throughout the years when they had a relaxing time going to Blockbuster stores and renting movies to pass their time or enjoy with friends and family. Due to this fact, the name value of the brand will most likely survive even beyond a decade.
References:
The Rise, Fall, and Unexpected Rebirth of Blockbuster.
The 5 Reasons Blockbuster Failed Spectacularly – History-Computer
Blockbuster: The rise and fall of the movie rental store, and what happened to the brand
Why Blockbuster Went Out of Business? 🎦 An Analysis of its Business and Pricing Model.
Blockbuster reactivates website more than a decade after bankruptcy filing.
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