The Driving forces in a film rental industry are the major underlying causes of changing market and competitive conditions. Driving-forces analysis possess three steps: (1) Identifying the actual driving pushes are
(2) Determining driving causes which effects Netflix and Blockbuster (3) Companies producing strategy decision
Since 2000, the creation of new technologies and gadgets products got rapidly multiplied consumer opportunities to view films 1 . More and more numbers of people had blend DVD player/recorders, so they could easily record TELEVISION SET programs and movies and then re-run them at their convenience. 2 . Moreover, consumers had been increasingly interested in watching movies on their big-screen high-definition Tv sets and had been upgrading to BLu-ray Auto dvd player or player/recorders; both Blu-ray and high-definition technologies allowed more magnificent pictures and a drastically higher quality in- house movie-viewing encounter e. g. Netflix was predicated the DVD formats, along with high-definition successor formats such as Blu-ray, would be the vehicle intended for watching articles in the home for the near future. 3. Rates for wide-screen, high-definition Televisions had been falling rapidly, and film quality was exceptionally good, if certainly not stunning, in increasing numbers of models. e. g.
4. The latest advances in video-streaming technology were swiftly improving the prospects that VOD could emerge since the major movie leasing channel within the next 5-10 years e. g. In January 2007, Netflix introduced an instant-watching down for PCs that allowed subscribers to see selections by Netflix's collection of 12, 000 full-enough movies and television symptoms streamed online directly to their very own PC monitors 5. LG ELECTRONICS electronics launched a set-top box system that allowed Netflix's instant-watching selections of films and TV episodes to be viewed directly on subscribers' television set screens.
Regulatory influences and government...