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.comwww.reel.comwww.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

4. 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

7. 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)