With the movie market being bombarded with more convenient, cheaper and even free ways to watch movies, it is no wonder that the well established company, Blockbuster has filed for bankruptcy. There are “video vending machines” at grocery stores, like Safeway, that allow you to rent a movie for less than at a video store.  It targets/appeals to those rushing home on a Friday night reluctant to stop for groceries, and a movie; making a convenient one stop shop.

Shaw on demand allows you to purchase movies without leaving your pajamas!  Applying the cost-benefit principle, a rational person would purchase the movie off Shaw and demand, even though the prices are higher than at a video store. Why? Because the costs – time it takes to drive there and back, $$ spent on gas, and the purchase of the movie itself, exceeds the benefits.

With the rising internet capabilities, one can download movies off the internet for free!

Blockbuster needs to, get out of debt, and come up with a new strategy that will steal back its customers and market share. One recommendation is they could team up with a delivery service organization, say Pizza Hut, delivering pizza and/or a movie, which would likely increase both organizations profits!