In recent years, online movie streaming has become a huge threat to the movie theatre industry. Cineplex is the largest chain movie company in Canada owning many theatres including Scotiabank, Famous Players, and SilverCity. A close substitute for the movie theatre industry is online movie rentals, so naturally, Netflix, the largest movie rental subscription company in the US, is Cineplex’s major rival.
“The Cineplex Store has all the latest and greatest new releases, plus your favourite catalogue classics.” –cineplex.com
Netflix’s point of parity is providing movie-streaming services to customers in the comfort of their home. The value of Netflix shares has been steadily increasing for the past year; understanding the success of Netflix, Cineplex has followed in their footsteps by strategically placing more emphasis on the online and at home services. From our class readings, we know that in order for a company to be successful, they should find their own niche: a point of difference that sets them apart from other companies. What Cineplex offers that Netflix doesn’t is their ability to rent movies that are newly released to video, and sometimes even movies that haven’t been released on DVD and Blu-ray yet. With the recent launch of Cineplex Digital Tuesdays, we see a real push towards the online movie rental market. Cineplex now offers online rentals of standard definition movies on their online store for only $2.50 on Tuesdays.
Resources:
http://www.fool.ca/2013/10/04/cineplex-taking-a-page-from-netflixs-playbook/
Images:
The Loklok app is quite popular these days since it provides a lot of features and convenience for those who like viewing latest movies.