Netflix vs Blockbuster

Registration ID: IJNRD_309414

Published ID: IJNRD2509098

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Vedant Poddar, Ira malpani

Netflix, Blockbuster

This research paper analyzes the competitive divergence between Netflix and Blockbuster, arguing that Netflix's use of analytics-driven strategies was the decisive factor in its success, rather than solely external factors like the rise of streaming technology. The study uses a comparative case study design, applying Christensen's Disruptive Innovation Theory and analyzing both companies' subscriber and churn rates, as well as their revenue and gross profit margins from 2000 to 2010. The findings show that Netflix's business model, which was built on analytics from the start, created a "growth flywheel". The company's Cinematch recommendation engine and churn modeling led to increased customer retention and higher customer lifetime value (CLV). These predictable, recurring cash flows were then reinvested into streaming infrastructure and original content, which further attracted and retained subscribers. In contrast, Blockbuster relied on legacy retail metrics such as store traffic and late fees, which provided little insight into changing consumer behavior. As a result, its churn rate skyrocketed from 10-15% in the early 2000s to 67% by 2010, and its revenue and profits collapsed as customers migrated to more convenient digital services. The paper concludes that while streaming technology provided the opportunity for disruption, analytics was the central engine that transformed Netflix from a niche entrant into a market leader

Published Paper   E-Certificate

Vedant Poddar & Ira malpani (September-2025). Netflix vs Blockbuster. INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 10(9), a869-a887. https://ijnrd.org/papers/IJNRD2509098.pdf

Volume 10 Issue 9, September-2025

Pages : a869-a887

Paper Reg. ID: IJNRD_309414

Published Paper Id: IJNRD2509098

Downloads: 00046

Research Area: Management All

Author Type: Indian Author

Country: Jaipur, Rajasthan, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2509098.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2509098

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