Movie Rental Wars

п Rental Wars Movie mint.com |Redbox Netflix Amazon Prime Blockbuster PRICE - $1/night $7.99/mo (streaming only) - $79/yr which translates to... -$11.99/mo (Blockbuster By Mail 1 DVD) $9.99/mo (1 DVD + streaming) - $6.58/mo $1/night (blockbuster kiosk) · .99/$2/$4*" (in-store rentals) SELECTION - 100-400 titles (approx.) - 100,000 titles or - 5,000 titles - 95,000 titles 20,000 titles (streaming only) (A Redbox kiosk holds 500-600 DVDS, selection depends on how many are checked out and how many duplicate titles are stocked) (However Amazon counts each episode of each show as a different title. Browsing available Prime content shows approx. 1,668 movies and 484 TV shows.) - Delivery to your Mailbox 95,000 titles (largest library) CONVENIENCE - DVDS available at kiosk - Download on Demand - Download on Demand - A drive to the DVD: 3 day shipping - Streaming: Instant - DVD: 3 day shipping TURNAROUND nearest Redbox (Average time according to users) Streaming: Instant - Pickup at location IREDBOX KIOSK Redbox has 24,000 kiosks -1 NETFLIX SUBSCRIBERS NETFLIK Netflix has MOVIE LOVER 555 ADORESS ANYTOWN USA 20 million subscribers 1000 REDBOX KIOSKS 1000 NETFLIX SUBSCRIBERS 000 1000 AMAZON SUBSCRIBERS Amazon Prime has roughly 6 million paying members 100 BLOCKBUSTER STORES BBBBBBBB (APRIL 2011) Blockbuster Video Has 1,800 Open Stores The Fall of Blockbuster - a timeline In one year Blockbuster loses 36% of its customers to companies like Netflix and Redbox Despite bankruptcy, Blockbuster still has 47,000 Facebook Fans Blockbuster Online has 1.5 million subscribers 5,000 open stores 2006 2007 2009 2010 2011 CEO John Antioco is replaced. Blockbuster shifts focus away from online rentals Blockbuster is Dish Network buys for $320 million. Blockbuster Online has $1 billion in debt Files Chapter 11 Bankruptcy 1,800 open stores Bloc 3.1 million subscribers 2011 Video Rental Methods TOTAL REVENUE NET INCOME IN MILLIONS OE US DOLLARS IN MILLIONS OF US DOLLARS 200 5000 4000 SEPTEMBER 2010: 3000 -200 BLOCKBUSTER 31% 27% DECLARES 2000 BANKAUPTCY Kiosk Rentals (Redbox, etc) In-Store Rentals (Blockbuster, etc) 400 1000 41% Subscription Rental Services (Netflix, Amazon Prime, etc) 12-2007 12-2008 12-2009 12-2010 12-2007 12-2008 12-2009 12-2010 OCKBUSTER redbox NETFLIX Sources: Inside Redbox, Calabash, USA Today, Google Finance, Ibis, Bizminer, Harvard Business Review, Dish Network, Seeking Alpha mint.com