Film distribution (Innovator’s Dilemma/Hype Cycle) – Kelly O’Neill

Innovator’s Dilemma

Film distribution has always been dominated by major studios and movie theaters across the country. The legacy leader is watching most films in movie theaters right when they come out. Specific disruptive innovations that caused the leader to lose focus on customer needs include DVD’s, Netflix, Blockbuster, and Redbox. The “good enough” solution for the disruptor is digital streaming.

Innovator Dilemma Graph


The trigger of film distribution happened when Nickelodeons, movie theaters with an admission fee of one nickel, began to open. The peak of inflated expectations were Blockbusters, American-based providers of home movie and video game rental services. There were over 8,000 stores before the trough of disillusionment happened and put Blockbuster into bankruptcy. DVD’s and Redbox then took over. The plateau of productivity was when OnDemand was introduced, making it easier for people to simply rent or buy a movie off their own television at home. The enlightenment is digital streaming, the most common way to watch movies today.