Failure of Blockbuster and Movie Gallery Essay

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Introduction

Blockbuster and Movie gallery companies in the entertainment industry that have been affected by the advent of the digital era. The demise of Blockbusters is an example of a failure to adopt an emergent perspective to planning.

The video rental company failed because customers discovered a cheaper and more efficient method of obtaining movies and films (Cohan par1). The company stuck to its prescriptive strategy rather than making changes to cope with the situation.

Netflix encountered a similar problem when video streaming was introduced. However, it used available technology to provide more efficient and reliable services that kept them afloat in the market (Cohan par1).

On the other hand, Movie Gallery collapsed because it was unable to compete in the film industry with the likes of Netflix and Redbox (Schmidt par3). The two companies failed because they were unable to utilize new technology to stay in the market.

The main reason for the failure of Blockbuster and Movie Gallery was the introduction of more convenient ways of obtaining films. The two rental companies utilized different strategies to deliver movies to customers. For example, Movie Gallery used movie vending machines to deliver movies.

They charged $ 1 to rent a movie for one night (Schmidt par4). The vending machine service was convenient and cheap because it did not necessitate the need for a movie store. However, it did not stand the test of time.

On the other hand, Blockbuster operated several video rental stores that made it one of the largest video rental companies (Cohan par5). Huge debts and lack of visionary strategy led to its closure. Customers discovered a more convenient, fast, and cheap way of obtaining their favorer movies.

Before the advent of digital downloading, customers had to visit rental stores or vending machines to obtain movies. Also, they had to pay a certain amount of money as a rental fee. However, after the emergence of digital downloading, the film industry has changed a lot.

People do not need to visit rental stores anymore. They only need to login into websites that offer downloads services and download movies of their choice at a fee.

Advantages of digital downloading

Digital downloading is touted as the future of the film industry. It has several advantages that endear it to many people around the globe. First, it is convenient and reliable (Herve 24). Customers do not need to drive or walk long distances to rental stores to obtain movies.

With digital downloading, customers only need to log in to certain websites and download their favorite movies. With the rapidly changing society, people are drifting towards sessile lifestyles (Herve 25). Everything is done online including education and shopping.

The film industry is developing ways of how to include digital downloading in the industry because it is its future.

Secondly, digital downloading enables customers to watch new movies even before they become available on DVD (Herve 26). For example, 20th Century Fox made the movie Prometheus available for digital downloading before they produced it on DVD.

Moreover, digital downloading is cheaper. There are websites that offer free movie downloads. Consumers find it cheaper to download movies rather than renting because downloading is cheaper, efficient, and faster.

Thirdly, downloading is less tiresome compared to renting which necessitates visiting rental stores or vending machines (Herve 27). Renting involves going to a movie store to get a movie, which should be returned later.

In case a customer destroys or displaces the movie, he/she compensates for the damage or loss. People can now obtain movies at the comfort of their homes. They only need a reliable internet connection and knowledge of online companies that offer digital downloading services (Herve 27).

The only input needed form an individual is logging in to a website that offers such services and the computer does the rest. This convenience beats the inconvenience of traditional rental stores or vending machines (Herve 28).

Digital downloading is the future of the film industry because it enhances convenience, affordability, and availability of films to a wide base of consumers (Herve 30). Traditional movie rental services cannot match digital downloading.

It took time before new films became available for rental at movie stores. They were only available after they were produced on DVD. However, this culture has changed. Some movies become available for downloading even before they become available on DVD.

This has introduced a new experience for movie enthusiasts. They no longer have to wait for weeks or months to watch their favorite new film.

Many film companies are drifting towards digital downloading because of its many opportunities (Herve 29). Also, it is easier and cost-effective to advertise online.

The collapse of many movie rental companies is enough proof that traditional movie rental services are on the decline (Herve 30). This is also evident from the shift made by great film companies to digital content. For example, the 20th-century fox has made several movies available online.

Digital downloading is the future because it is supportive of modern lifestyles that involve working from home and shopping online (Herve 31).

Digital downloading presents a wide selection of films to consumers. Customers make choices based on reviews available on websites. Any movie can be found online for download.

In contrast, rental stores have limited availability of movies especially new movies. With the advent of digital downloading, illegal downloads have risen significantly. Many claims that illegal downloads are a threat to digital downloading.

However, analysts argue that illegal download does not have a significant effect on the film industry. Despite the proliferation of illegal downloads, customers buy legally available movies.

Conclusion

The advent of the digital downloads era has changed the film industry significantly. The era was heralded by a drop in DVD sales and a decline in theater attendances.

The widespread failure of many traditional movie rental companies was due to the availability of a more convenient method of obtaining movies. The consequences of digital downloading have been severe. It has led to the collapse of several rental companies such as Blockbusters and Movie gallery.

These companies collapsed because they failed to shift to digital downloading early enough to prevent their collapse. Digital downloading is the future of the film industry because it is a convenience, affordable, and offers a wide selection of movies.

Its convenience is evident because customers do not need to visit video stores but obtain their favorite movies from home. Also, they can download certain new films even before they are available on DVD.

Digital downloading is the future because it fulfills the needs of the modern society in which people have become over-reliant on the internet.

Works Cited

Cohan, Peter. Why Blockbuster Went bust While Netflix Flourished. 2010. Web.

Herve, Fischer. Digital Shock: Confronting the New reality. New York: Cengage Learning: 2006. Print.

Schmidt, Katherine. Movie Gallery Stores Going Out of Business. 2010. Web.

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IvyPanda. 2020. "Failure of Blockbuster and Movie Gallery." March 15, 2020. https://ivypanda.com/essays/failure-of-blockbuster-and-movie-gallery/.

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