Monday, September 1, 2008

Industry Evolution

Long before the convenience of movies-on-demand or dvds-by-mail, Blockbuster appeared prominently on street corners. The experience of renting a movie was similar to visiting today's neighbor Starbucks. As new technology and renting formats entered the marketplace, the number of Blockbusters waned and the company's focus shifted towards online renting.

As new technology enter marketplaces, the lifespan for current business models and products is typically short lived. For example, the Iphone 3G's affordability and diverse functionality causes the Ipod's demand to be minimal. Similarly, an increase in bandwidth and change in consumer preference is shifting the movie rental experience towards legally downloading films. Netflix, The Itunes Store and Blockbuster allow consumers to download selected movies from their site. Although the initial selection is small and playback is limited to cooperative electronic devices, the innovative concept is transforming the film industry.

As rivals in any industry implement similar business models, creative marketing concepts will help distinguish competitors. The ability to create needs and effectively convey them in an integrated campaign will ultimately separate the industry winner from the herd.

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