P2P The New Blockbuster?
A few nights ago I had dinner with my friends in West Broadway, on my way back to the bus stop I saw a Blockbuster store. Coincidently, earlier that day I was discussing about it in class. The business is experiencing a major turnover which is clarified in an article on http://www.bnet.com/blog/retail-stores/blockbuster-scrambles-for-cash-and-stalls-for-time-but-neither-will-save-it/386.
One major reason for their bankruptcy is the change of customers’ preferences. People nowadays like convenience. Another reason is the shift of physical media to online digital delivery, due to advance technology. Linking this to Michael Porter’s five forces analysis, one of their main substitutes is movie downloads which could be obtained from peer-2-peer (P2P) technology. P2P download is more convenient in so many different aspects. It is cheaper (even free), more convenient since you don’t have to leave your sit to get the movie, and no need to provide space to keep all the DVDs.
