C/OM/23. Supply Networks and Product Delivery: The Challenge easyGroup Faces in Entering the Online DVD Rental Market

Companies such as Amazon, Blockbuster and Netflix in the US have brought online DVD rental to millions of homes. Customer can now subscribe to services that allow them to watch more movies for less, from a wider selection, with no late fees and without needing to visit a high street store. Following their success, a large number of companies have launched such services in the UK. These include US competitors, Amazon and Blockbuster. However, the UK market is led by the venture capital backed start-up, Video Island, which provides online DVD rental through its own brand, ScreenSelect, and so-called Ëwhite labels who draw on Video Islands back office systems and other services. These include national brands like Tesco, MSN and easyGroup. This paper looks at the implications and challenges that easyGroup, in the context of its competitors, faces in entering this increasingly competitive market. More specifically, it focuses on the challenges that its unique, pay-as-you-go pricing model has on its supply network and how it can overcome these issues to ensure the successful long-term delivery of its services.