Artificial barriers – a doomed business model

August 27th, 2009 by tomeast Leave a reply »

A recent article over at TechCrunch details an unholy alliance between Blockbuster and the movie industry. Their idea, aimed squarely at relative newcomers such as Netflix and Redbox, is to limit new release rentals to physical rental stores for the first 30 days. As seen by skimming the (abundant) user commentary, it is easy to see the discontent with such a brazen action completely devoid of any benefit to the consumer. It is hard to imagine any other objective in this strategy than Blockbuster’s attempt at propping up a failing business model by taking away existing customer choice. I’d be curious to hear of any examples where such a business strategy has resulted in an improved outlook for a company. I certainly hope that there is some correlation between value provided to a customer and business prosperity. I firmly believe that the best long term strategy in any business is to provide ever increasing value to your customers and adapting to new business challenges by evolving in directions that continue to benefit your customer base.

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