Blockbuster Retreated to Mexico, Now Netflix Plans to Track It Down and Kill It There Adam Epstein - Quartz
go to original July 22, 2014

Looking at you, Mexico (Reuters/Mario Anzuoni)

Blockbuster may have shuttered most of its stores in the United States, but the video rental chain is still alive and kicking in Mexico. Perhaps not for long.

Netflix, which was partially responsible for Blockbuster’s demise in the US, has now outlined an aggressive plan to extends its reach in Mexico. If successful, Netflix could steal most of Blockbuster’s clientele. And after Mexico, Blockbuster doesn’t really have anywhere else to go.

Blockbuster has enjoyed a second life in Mexico due in part to the country’s relative lack of internet connectivity. Only 31% of Mexican households have internet, which makes purchasing physical DVDs and video games more attractive. And unlike the US, Mexico doesn’t have any Redbox kiosks to compete for in-person purchases.

Netflix’s plan of attack in Mexico is based on three ideas: introduce in-store gift cards, invest in ads specifically targeting Mexicans, and highlight Netflix’s functionality on smart TVs.

Read the rest at Quartz

Netflix’s “Viva Netflix” campaign has already spawned two popular ads, one riffing off Alfred Hitchcock’s Psycho and the other featuring Mexican striker Oribe Peralta, which ran right after the country’s World Cup exit.

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