Re:Blockbuster CEO 'Confused by Fascination' With Netflix
by netcan on Tuesday August 19, 2008 @10:23PM
(#281120)
This article's a bit unfair.
If you read the interview (kinda long) the quotes' are a little out of context. At least they don't really represent the jist of his arguments.
Sure, the business model is built on artificial product life-cycles, content-container hybrids that are unnecessary and market segmentation that is being aggressively created to wring as much out of a new flick as possible.
But given that environment, his arguments are reasonable. They want to focus on the big market - Physical Store. VOD subscriptions, he sees as a small market indefinitely. VOD buy/rent he sees as a long term direction so.
The point about new releases sounded a little more along the lines of:
The new release market is more substantial. We have chosen to focus on those. We can, if needed support the long tail.
It's a bit cheap taking shots at everyone & anyone in an anachronistic business. What do you expect them to do throw the business out the window & start over? The in store market still exists.
If you read the interview (kinda long) the quotes' are a little out of context. At least they don't really represent the jist of his arguments.
Sure, the business model is built on artificial product life-cycles, content-container hybrids that are unnecessary and market segmentation that is being aggressively created to wring as much out of a new flick as possible.
He refers to this: http://www.flickr.com/photos/13736953@N00/2762004788/ (He segments the market across 2 axis (medium - store/mail/internet/kiosk & method - rent/buy/subscribe)
But given that environment, his arguments are reasonable. They want to focus on the big market - Physical Store. VOD subscriptions, he sees as a small market indefinitely. VOD buy/rent he sees as a long term direction so.
The point about new releases sounded a little more along the lines of:
The new release market is more substantial. We have chosen to focus on those. We can, if needed support the long tail.
It's a bit cheap taking shots at everyone & anyone in an anachronistic business. What do you expect them to do throw the business out the window & start over? The in store market still exists.