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Home Movie Rental Industry

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Home Movie Rental Industry
Operations Management Principles
(MGM340-1302A-04)
Professor Charles Cullinane
Home Movie Rental Industry
Roxane Billiot
May 5, 2013

I. Introduction to home movie rental industry A. Netflix
1. Background
2. History B. Redbox
1. Background
2. History II. Operational objective C. Netflix
1. Mission Statement
2. Expectations D. Redbox
1. Mission Statement
2. Expectations III. Specific operational challenges IV. Metrics E. Customer satisfaction F. Cost G. Growth V. Industry challenges addressed VI. Conclusions H. Similarities I. Differences

VII. Applicability elsewhere J. Outsourcing K. JIT

Introduction
I believe that we all know a little something about the home movie rental industry even if it is just how to rent a good movie to watch at home. I can remember back when all they had were video stores and there were no such things as DVD’s, you could only get VHS or Beta tapes. That seems so long ago. Today there is no need to even leave your home to rent a good movie. In this paper I intend on explaining the operational objectives, specific challenges, metrics and industry challenges of two of the most popular forms of the home movie rental industry.
Netflix
People love to watch television; however, most of us would do away with commercials. As the world’s leading internet television network, more than 36 million people in over 40 countries can enjoy watching commercial free television for a low monthly fee. I’ve been a member of Netflix myself since 2008. There are several plans to choose from. I started out with renting one movie at a time with free streaming, and have changed my plan several times. At one time I was even getting four movies at a time to now only using the streaming plan, which is only $8.99 monthly. According to Francis Underwood, “Over the coming decades and across the world, Internet TV will replace linear TV. Apps will


References: Underwood, F. (2013, April 25). Look at the bigger picture. Retrieved from http://ir.netflix.com/long-term-view.cfm Netflix timeline. (2013). A brief history of the company that revolutionized watching of movies and tv shows. Retrieved from https://signup.netflix.com/MediaCenter/Timeline Redbox. (2013). Redbox fun facts. Retrieved from http://www.redbox.com/facts Hastings, R. (2004, October 12). The mission statement, vision, promise and values of Netflix. Retrieved from http://danbraydesignuni.wordpress.com/2012/10/04/netflix-mission-statement/ Coinstar. (2013). Reimagining responsibility. Retrieved from http://www.google.com/url?sa=t&rct=j&q=coinstar Redbox mission statement&source=web&cd=5&cad=rja&ved=0CEsQFjAE&url=http://www.coinstarinc.com/media/download/csr_report.pdf&ei=FfGHUY-sCIrJ0gGN0IGoCA&usg=AFQjCNFr-SEZwHFsE-dDZ884E0oOOwE5IQ&bvm=bv.45960087,d.dmQ Indiviglio, D. (2010, September 27). 3 big challenges facing Netflix. Retrieved from http://www.theatlantic.com/business/archive/2010/09/3-big-challenges-facing-netflix/63637/ Van Grove, J. (2009, December 8). Redbox: The enemy of the entertainment industry? [study]. Retrieved from http://mashable.com/2009/12/08/redbox-study/
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