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Blockbuster Acquires Movielink

In: Business and Management

Submitted By jmsterra
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Pages 16
Blockbuster Acquires Movielink: A Growth Strategy?
Joao Marcos da Silveira Terra

6/7/2012
Wayland Baptist University
BUAD5312 – Strategic Management Summer VC02

Executive Summary 2 Introduction 3 Business and Financial Metrics 5 Business Segments 6 In Store 6 By Mail 6 Vending 6 Download to PC 6 Trends and Forces 7 Cyclicality of Rental Sector 7 The Future of Media and BBI´s Brick-and-Mortar Model 7 Saturation in Kiosk Distribution Market 7 Competition 8 In-Store Rentals and Sales 9 Movie Gallery 9 Online Rentals 10 Netflix 10 Amazon 11 Apple 11 Online Viewing 11 SWOT Analysis 12 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 Summary 13

Executive Summary
Movielink is the leading movie download service offering U.S customers an extensive selection of new and classic movies, foreign films, TV shows and other hard-to-find content. It is a web-based video on demand (VOD) and electronic sell-through (EST) service offering entertainment for rental or purchase.
It was created in November 2002, as a joint venture ($100 million investment) of most of the big studios – Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios, Warner Bros., and others on a non-exclusive basis. While it was only available to users in the United States, it was the first company in the world to offer legally downloadable movies from major studios.
Today, Movielink is a wholly-owned subsidiary of Blockbuster Inc., purchased in August 2007, a leading global provider of in-home movie and game entertainment, with approximately 7,800 stores throughout the Americas, Europe, Asia, and Australia. Clearly a hedge move by Blockbuster, whom is locked in a death spiral with the cheaper and more convenient Netflix. Netflix also launched a free movie on demand product in early 2007. Until then,...

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