Sunday, February 13, 2011

When Passion for Movies, Technology Collide

The article is from WSJ on Feb 10, 2011
Netflix definitely pushed several competitors out of business but in this article, Mr. Skorman, an Internet and retail entrepreneur, "believes rental stores with loyal followings in vibrant neighborhoods will survive.", citing that people still need "community element" that online can't offer.
Notice that there are at least two conditions for the brick-and-mortar model to survive: loyalists and vibrant neighborhoods. So, this model can work but only as highly specialized boutiques located in some crowded areas due to the two dramatic limitations that Chris Anderson pointed put in "The Long Tail".

1 comment:

  1. I am dubious about the survival of video stores, even in vibrant communities. I believe there is something to be said about being able to go somewhere in your local community and pick up a physical disc to watch that night - I am surprised the article didn't mention Redbox. Redbox is filling the demand for the "hits" and "blockbusters" most people went to the video store to rent anyway. And they are doing at a fraction of the cost with their vending machines littered all over now. With Redbox and Netflix and the oncoming streaming revolution, all local video stores will be out of business within 5 years.