Netflix
Essay title: Netflix
Competitors
In the movie rental market, the major competitors of NetFlix are Blockbuster, Movie Gallery, and GameZnFlix. In the retail market, Netflix also face competition from both online and store movie retailers such as Wal-Mart and Amazon.
Blockbuster
Blockbuster offers in-store rental, sale and trade for videos and video games globally. As of December 31, 2006, Blockbuster gained over $5.5 billion revenue and $54 million net income, the highest in the Video Tape and Disc Rental industry. (source: Mergent online). It is business model is to offer 3 different monthly plans, ranging from $9.99 ЁC 17.99 per month, subscripted customers select movies and video games online, receive them by mail, then mail them back or exchange for other movies and video games at a participant store. It has more than 8,000 corporate and franchise stores in 24 countries.
Movie Gallery
Movie Gallery focuses on DVD and VHS movies and video games rental and sale. It operates under 3 subsidiary brands: Movie Gallery, targeting small towns and rural areas. Hollywood Video and Game Crazy, targeting urban centers and suburban neiborhoods. (source: datamonitor). As of Dec 31 2006, Movie Gallery had total revenue of more than $2.5 billion but a net loss of over $25 million. Compared with BlockbusterЎЇs $900 million long term debt, it has a long term debt over $1 billion.
GameZnFlix
On its website, GameZnFlix separates its about 40,000-title offering for DVD, HD-DVD, Blu-Ray, UMD, Xbox, Xbox 360, PSP, PS 1, 2 and 3, Wii and NintendoЎЇs Gamecube, while Netflix has a library of more than 18,000 movie, television and other filmed entertainment titles. GameZnflix differentiates itself by high level of customer service, quality titles and product availability. (source Mergent online)
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