Netflix initiated the on-line video rental sector and developed a successful business model that effectively handled customer acquisition, retention, and life value. Blockbuster Video intend to slow Netflix's enlargement by establishing an online lease application that appear to be flawlessly integrated with its huge system of video shops that are offline.
Will Blockbuster's station program damage the customer acquisition and rentention rates of Netflix? Concurrently, competition from video retailers including Wal Mart challenges the core business model that Netflix built to maximize customer lifetime value.
PUBLICATION DATE: July 31, 2008 PRODUCT #: UV1225-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
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