Publications
Publications
- December 2003 (Revised May 2004)
- HBS Case Collection
Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video Rental Industry
Abstract
Provides a comprehensive background of the video rental industry and home entertainment giant, Blockbuster Inc. Follows the life of Blockbuster Inc. from its first days under founder Wayne Huizenga to its most recent developments under 2003 CEO John Antioco. By looking at various strategic decisions its leaders have made throughout the past few decades, students come to understand better how Blockbuster Inc. has become the industry's dominant player. Also explores the fascinating economics of the home video industry, paying particular attention to the unique revenue-sharing model that has developed in recent years. Understanding Blockbuster Inc. and the video industry's background also allows students to analyze better the various technological substitution threats (such as DVD, DIVX, sell-through, home delivery services, Internet subscription services, personal video recorders, pay-per-view, and video-on-demand).
Keywords
Risk and Uncertainty; Decisions; Technological Innovation; Competition; Change Management; Economics; Service Industry; Motion Pictures and Video Industry
Citation
Coughlan, Peter J., and Jenny Illes. "Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video Rental Industry." Harvard Business School Case 704-404, December 2003. (Revised May 2004.)