News viewers are a lot like Netflix customers
Posted on Tue, Jun 29, 2010 @ 06:30 AM
No one will ever accuse me of being a very early adopter of new technology. But I think I understand now why Blockbuster video is going broke. My kids encouraged me to sign up for a Netflix trial, and instead of asking Netflix to send me DVD's in the mail, I hooked up a computer to the television set and used a wireless broadband connection to watch instantly. It works like a charm. HD movies, recently run television shows, all the series like Madmen that I never had time to watch - they are all there. Streaming works without a hitch. I can pause the movie and come back to it or quickly "rewind" to see that great scene again.
The last time I went inside a down-at-the-heels Blockbuster store I rented a movie and paid $4 for the privilege. They told me I owed them another $3 for a rental my teenager didn't return on time two months ago. What a lousy customer experience. It's almost what I will pay now for a month of Netflix service, with unlimited viewing.
It reminds me once again what we have seen for many years in consumer research. Choice and convenience win out every single time. When television stations in a market seem like dull carbon copies of one another, is it any wonder the audience gets bored and seeks out something new? If the only flavor on the menu is vanilla, I want to be the guy selling pistachio. And if I can be alone in a time period, or offer a product that has some unique advantages that give viewers a true choice, so much the better.
- John Altenbern