Changing Of Marketplace Affected Blockbuster's Profit
Changing of marketplace affected Blockbuster’s profit. According to the Blockbuster financial information in 2003 to 2005, liabilities were increased, and assets and stockholder equity were decreased; therefore, net asset of Blockbuster started decreasing in 2004 (Table 1). In order to catch up with the marketplace changing, Blockbuster made new, costly and destructive strategies (Wooldridge, 2007). Blockbuster lowered the renting cost and provided many promotions. Customers had many discount promotion by purchasing the online subscription. Also, Blockbuster launched renting and selling video games. In 2005, Blockbuster started “End of Late Fees” program, which customers had a seven-day window after the due date. Unreturned items were converted
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Netflix Term Paper
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