The VideoVHS Online Purchase Industry

1
The Video(VHS) Online Purchase Industry

• By TeamVHS
• (Lauren King, Robin Groce, Jason Knight, Joshua
  Feira, Yan Gao, Yi-Fan Fang)

2
Top Five Online VHS Companies

• www.reel.com , www.hollywoodvideo.com
• owned by Hollywood Entertainment Inc.
• www.blockbuster.com
• www.bigstar.com
• www.amazon.com

Source Yahoo.com/Business_and_Economy
3
Sample Registration Page
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Industry Overview

• Consumers enter relevant personal information
  online
• Consumers can purchase movies anytime, anywhere
  that they have internet access, while exploring
  movie reviews and other customer recommendations

5
Industry Overview

• Customer logs in, selects desired movies, and
  pays using a credit card
• Movies shipped via shipping service (like
  UPS/Fedex) to the desired location
• No membership dues or fees required

6
Sample Order Page
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Who Are the Customers?

• Blockbuster targets customers who are high volume
  movie renters/purchasers (Source Blockbuster
  S-4 December 1999)
• Detailed customer information was not available
  for most online VHS purchase companies in their
  SEC documents
• Basically anyone with a computer, internet
  access, a credit card and a VCR

8
How do they attract customers?

• Competitive pricing (all)
• Direct e-mail marketing(all)
• Discounts/special offers (all)
• Word of mouth (all)

• Reward cards (Blockbuster)
• Referrals/gift incentives(Amazon, Reel)
• Name recognition (Amazon, Blockbuster)

9
Value Added

• Service Quality Guarantees (Reel.com)
• E-mail notification of new releases and their
  descriptions (Blockbuster)
• Recommendations and movie reviews (Blockbuster,
  Reel.com, Amazon)
• Sample video clips (Blockbuster)
• Friend lists allows customers to inform friends
  on recent films viewed (Amazon, Blockbuster)

10
Value Added

• Personalized recommendations based on past
  purchases (Amazon)
• Free electronic greeting cards (Amazon,
  Blockbuster)
• Access to online auctions (Amazon)
• Access to movie database (Amazon)
• Movie trivia challenge game (Reel.com)

11
Value Added

• Movie news and reviews (all)
• Customer wish lists (Amazon)
• Online order status tracking (Reel.com, Amazon)
• Top ten lists (Blockbuster,Reel.com)
• Discussion groups (Amazon)

12
Customer Retention

• Loyal customer bonuses and discounts (Amazon)
• Customized promotions (BigStar)
• Daily specials (BigStar)
• High volume rewards program (Blockbuster)
• Comprehensive product lines (VHS,DVDs) ensuring
  that customers will stay when their video
  technology changes (all)