I like the article because it looked at businesses that were going out of business in a positive way. It said that failure is a sign that capitalism is working. Also it said that failure will serve future entrepreneurs well with lessons on what and what not to do.
The article talks about how Blockbuster went bankrupt because of Netflix. Netflix did things like DVDs by mail and they had no limits on how long a customer could keep the movie. After awhile Blockbuster wanted to do this, but they were already in to much debt, so they had to shut down. Netflix did better with having shares trade at $70, while Blockbuster had shares a lot less, like $.30. It also talks about how the Blockbuster stores will sell it to a new owner at a good price or lease it. The article talks about how capitalism is working and that todays competition in businesses today, might not be there in a little while.
Blockbuster didn't think about economics, they ignored market competition and didn't change their ways of business. Blockbuster hit a major wall when NetFlix came out and made it way more sufficient to rent a DVD. Netflix also didn't have a late fee, you just have to pay monthly fees, you can keep a DVD for as long as you want and not get charged an extra late fee. As with BlockBuster you have to go to the store and pick it up and then make sure you return it within your rent period or your charged a late fee, no matter what the weather looks like, rain snow, blizzard, tornado, you have to return it on time or you'll be charged. With NetFlix you could go online and download the movie onto your computer or even your xbox 360 or PS3. There were really no obstacles to get the movies. AS with Blockbuster you had to drive to the blockbuster in your town, which their aren't many in Cedar rapids/marion, and return it on time wasting your gas money as with Netflix you didn't have to drive anywhere. BlockBuster didn't put Capital in their mind. Blockbuster did offer great dicounts to their fan club but their fan club would have to drive to blockbuster and get the movie then drop it off
The article talked about blockbuster going out of business, but they did give them credit for their great services. they kind of blamed netflix on blockbuster going out of business. because of netflix great deals where you can get a movie through the mail, and there are no late fees. AWESOME! blockbuster was expensive for renting one movie a night, but it probably did not just go bankruptcy from netflix, there is also red-box, which costs a dollar a night.
Kortney Paustian said... The article explains how blockbuster was defeated by creative destruction. Netfilx beat blockbuster by being more creative. My family has netfilx too and we hardly ever go into town to rent movies. Especially because we can download them to the tv. I think another thing that helped but blockbuster out of business was redbox. It was an example of an economic c.ycle..
Basically the article says that Blockbuster went out of business because of Netflix. Netflix had better deals than Blockbuster because they had to late fees and Netflix delivered through the mail and you didn't have to go to a store. It said they went out of business because capitalism is working
This article was boring! It was about Blockbuster and how they ended up going out of business because of many things but manily because of other businesses like Netflix. Netflix has other deals that were more interesting to customers because they didn't have late fee's and could keep the movies as long as they wanted and they also got the movies sent to their house which I agree would be way nicer then having to go to a store and get one! One good thing about Blockbuster is that you can pick out your movie in the store and you don't have to wait for it. So anyways they were in a lot of debt so they went out of business. This article shows a perfect example of Economics and how what customers want is most important.
The Blockbuster article talked about them going out of business. Blockbuster use to have good business in 1999 the share price was $19. People blamed Netfix for them going out of business. Netfix has lower prices then blockbuster. People could get more for there money with Netfix. I feel people would rather use the internet and rent moves off Netfix, then drive to Town to get movies. Blockbuster also didn't have video game systems so they lost young teens in business. (mostly boys) Different video stores have better deals then Blockbuster.
The article talked about Blockbuster going out of business and what the reasons were. One reason was that the new way of getting movies was by getting them mailed with no late fees. Netflix started that and soon after blockbuster was already losing costumers. Blockbuster tried to follow suit but Netflix already had the majority of costumers. Blockbuster didn't do anything wrong they were just outdated. Now costumers don't want to have to pay late fees and go to get a movie they want to click a button to get what they want. They tried to keep up but failed. Their failure did teach a lesson that businesses can failed.
I like the article because it looked at businesses that were going out of business in a positive way. It said that failure is a sign that capitalism is working. Also it said that failure will serve future entrepreneurs well with lessons on what and what not to do.
ReplyDeleteThe article talks about how Blockbuster went bankrupt because of Netflix. Netflix did things like DVDs by mail and they had no limits on how long a customer could keep the movie. After awhile Blockbuster wanted to do this, but they were already in to much debt, so they had to shut down. Netflix did better with having shares trade at $70, while Blockbuster had shares a lot less, like $.30. It also talks about how the Blockbuster stores will sell it to a new owner at a good price or lease it. The article talks about how capitalism is working and that todays competition in businesses today, might not be there in a little while.
ReplyDeleteBlockbuster didn't think about economics, they ignored market competition and didn't change their ways of business. Blockbuster hit a major wall when NetFlix came out and made it way more sufficient to rent a DVD. Netflix also didn't have a late fee, you just have to pay monthly fees, you can keep a DVD for as long as you want and not get charged an extra late fee. As with BlockBuster you have to go to the store and pick it up and then make sure you return it within your rent period or your charged a late fee, no matter what the weather looks like, rain snow, blizzard, tornado, you have to return it on time or you'll be charged. With NetFlix you could go online and download the movie onto your computer or even your xbox 360 or PS3. There were really no obstacles to get the movies. AS with Blockbuster you had to drive to the blockbuster in your town, which their aren't many in Cedar rapids/marion, and return it on time wasting your gas money as with Netflix you didn't have to drive anywhere. BlockBuster didn't put Capital in their mind. Blockbuster did offer great dicounts to their fan club but their fan club would have to drive to blockbuster and get the movie then drop it off
ReplyDeleteThe article talked about blockbuster going out of business, but they did give them credit for their great services. they kind of blamed netflix on blockbuster going out of business. because of netflix great deals where you can get a movie through the mail, and there are no late fees. AWESOME! blockbuster was expensive for renting one movie a night, but it probably did not just go bankruptcy from netflix, there is also red-box, which costs a dollar a night.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteKortney Paustian said...
ReplyDeleteThe article explains how blockbuster was defeated by creative destruction. Netfilx beat blockbuster by being more creative. My family has netfilx too and we hardly ever go into town to rent movies. Especially because we can download them to the tv. I think another thing that helped but blockbuster out of business was redbox. It was an example of an economic c.ycle..
Basically the article says that Blockbuster went out of business because of Netflix. Netflix had better deals than Blockbuster because they had to late fees and Netflix delivered through the mail and you didn't have to go to a store. It said they went out of business because capitalism is working
ReplyDeleteThis article was boring! It was about Blockbuster and how they ended up going out of business because of many things but manily because of other businesses like Netflix. Netflix has other deals that were more interesting to customers because they didn't have late fee's and could keep the movies as long as they wanted and they also got the movies sent to their house which I agree would be way nicer then having to go to a store and get one! One good thing about Blockbuster is that you can pick out your movie in the store and you don't have to wait for it. So anyways they were in a lot of debt so they went out of business. This article shows a perfect example of Economics and how what customers want is most important.
ReplyDeleteThe Blockbuster article talked about them going out of business. Blockbuster use to have good business in 1999 the share price was $19. People blamed Netfix for them going out of business. Netfix has lower prices then blockbuster. People could get more for there money with Netfix. I feel people would rather use the internet and rent moves off Netfix, then drive to Town to get movies. Blockbuster also didn't have video game systems so they lost young teens in business. (mostly boys) Different video stores have better deals then Blockbuster.
ReplyDeleteThe article talked about Blockbuster going out of business and what the reasons were. One reason was that the new way of getting movies was by getting them mailed with no late fees. Netflix started that and soon after blockbuster was already losing costumers. Blockbuster tried to follow suit but Netflix already had the majority of costumers. Blockbuster didn't do anything wrong they were just outdated. Now costumers don't want to have to pay late fees and go to get a movie they want to click a button to get what they want. They tried to keep up but failed. Their failure did teach a lesson that businesses can failed.
ReplyDelete