NETFLIX CASE2Netflix and Blockbuster Business Models A business model is the way of operation of a business entity with its customers. For example, a business model that focuses on innovation addresses unmet needs and tries to satisfy the demand of customers that are not met by the existing models or businesses. Blockbuster business model started back in early 2000 and was operating using physical stores. Its customers were leaving close to their stores where they could rent movies for $3 and $4 for a fixed period of time. On the other hand, Netflix business which was started in 1997 offered only DVD formats to its customers which were sent to them via mails and therefore they did not have physicals stores. The two business have similarities in their operation in that their target is customers in needs of films but they differ in so many ways. This paper will discuss similarities and differences between Netflix and Blockbuster business models.