Internet Kills the Video Store


NetflixIn 10 years, you won’t be able to visit your local Blockbuster. Maybe less. In fact, the only traditional video stores you’ll see are a smattering of ma n’ pa’s and indy film outlets. Blockbuster and the rest of the big chains will only be accessible by a mouse or remote control. Netflix, the successful DVD-by-mail service has begun to show movies and TV episodes over the Internet to subscribers as it embraces a major technology and and cultural shift, according to CNN.com. The move is inevitable, and also one of survival. As the list of movie-over-the-net providers keeps growing to satisfy the consumer’s insatiable appetite for instant gratification, major motion picture studios will be forced to release their latest DVD movies in digital format for such carriers to find their intended audience in a timely fashion. CNN.com reports that major studios like NBC Universal, Sony Pictures, MGM, 20th Century Fox, Paramount Pictures, Warner Brothers, Lion’s Gate and New Line Cinema are already contributing to Netflix’s new service. “We are going into this with the knowledge that consumers want to watch (media) in various ways and we want to be there for them,” said Frances Manfred, a senior vice president for NBC Universal. “For now, though, we know television is the vastly preferred option.” ” Netflix Chief Executive Reed Hastings believes full-fledged Internet delivery of movies is still 3-5 years away, but expects to have 20 million subscribers by then to adopt the service.

3 Comments

Filed under Internet, marketing, Online marketing tactics, Selling, Technology, Web Sites

3 responses to “Internet Kills the Video Store

  1. I’ve rented a handful of movies “in store” in the past few months. From a grocery store actually.. From one of those Redbox machines. Oh and the kicker is there is a Blockbuster right next door that is part of the same physical building.

  2. Broadband plus cheap data storage will affect a lot of different things, not just movie and entertainment delivery.

    Ten years ago, I worked on the PR account for Verbatim, the data storage company. I remember sitting in a meeting where someone was talking about convergence and the future of data storage in the home. They predicted a central hard drive that stored all personal and entertainment data. The size, I asked? “At least 200 gigabytes.”

  3. As a follow up to this post, Techcrunch is reporting that Amazon has teamed up with Tivo to allow subscribers to rent and purchase digital TV shows and movies. Wal-mart has also entered the digital movie download space. You can read more about it here

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