A shift to rent movies for 99 cent movies at Blockbuster will no doubt be widely embraced my movie buffs, but will it be enough to save the the movie rental industry?
Blockbuster announced they would begin renting DVDs for 99 cents a flick as of January 2009, a welcome alternative to the $5 new release price most stores charge today, and much easier on the wallet than dolling out $12 per ticket at the theaters.
It's incredible to see how the movie rental industry has changed. It boomed in the 90s, when it seemed just about everyone had a VCR at home. Renting movies, and later DVDs, was a typical weekend activity for family nights in, hanging out with friends and an easy home-date.
A lot of people stopped renting movies, choosing to download them instead, pay for flicks on demand, or opting for cheap ownership techniques like buying previously viewed movies, often for under $5.
Could Blockbuster's new technique revive the business, or is this a telling glimpse into the demise of the overall movie rental industry?
99 Cent Video Rentals
Blockbuster to Lower Rates in January
Trend Themes
1. Shift to Digital Streaming - Blockbuster's move to lower rental rates highlights the growing trend of consumers opting for digital streaming services over traditional movie rentals.
2. Affordable Entertainment Options - The shift towards 99 cent video rentals reflects the rising demand for more affordable entertainment options, creating opportunities for disruptive innovation in the industry.
3. Decline of Physical Movie Rentals - Blockbuster's struggle to save the movie rental industry highlights the ongoing decline of physical movie rentals in favor of digital alternatives, paving the way for innovative solutions in the market.
Industry Implications
1. Streaming Services - The rise of digital streaming services presents disruptive innovation opportunities to offer a wide range of affordable and convenient options for movie enthusiasts.
2. Online Movie Purchases - The increasing popularity of online movie purchases and ownership techniques opens up room for disruptive innovation in providing low-cost, digital movie libraries.
3. Movie Theater Industry - The affordability of 99 cent video rentals poses a disruptive innovation opportunity for movie theaters to explore alternative pricing structures or innovative promotional deals to attract customers.