Blockbuster, Netflix, and the Funeral Industry

If you were alive in the 1980s, then you remember the beginnings of Blockbuster video. Blockbuster was born at a time when movie rental services were less than ten years old. Absurdly high prices for video purchases had created high demand for lower-cost video rentals. As a result, video rental stores spread like wildfire across the United States. Blockbuster didn’t just grow, it flourished. Within eight years, they had grown their store footprint to 3,600 locations across the US. The brand had become a household name and was embedding itself in the culture of everyday Americans.

Unfortunately, during this time of prosperity, Blockbuster became out of touch with changing consumer preferences. Consumers hated late fees, wanted a bigger selection, and didn’t want to drive to and from the store. Blockbuster ignored these signs and instead trusted in their business model which had already been proven successful. This became an invitation for competitors to enter the market, like a small startup called Netflix.

Netflix embraced the DVD revolution by implementing a mail-based subscription service. While Blockbuster watched this small company slowly gain market share with DVD mailings, Netflix was also developing an online streaming service that would eventually fully integrate technology into their company model. Soon after turning into a multi-million dollar company, Netflix executives offered to allow Blockbuster to purchase the company. Blockbuster declined the offer, later referring to Netflix as a “very small niche business”.

By the time Blockbuster realized that consumers preferred online streaming, it was too late. Netflix had already created a completely personalized and convenient process for streaming movies. Their platform allowed for new movies to be suggested to each user based on their interests, late fees were nonexistent, monthly payments were automatic and cheap, and families could browse options from the comfort of their own home.

Now how exactly does this relate to us in our funeral homes and cemeteries? The funeral industry as a whole has been slower to fully embrace the tech boom. The personal level at which we do business has often seemed at odds with technology. Our customers aren’t just customers, they’re families going through a very difficult time. Where does technology fit into our service? And what happens if we are too late in adopting it?

While the funeral industry is by no means a tech-heavy industry yet, it is heading in that direction. We’ve all seen the booths of tech companies at NFDA and ICCFA that look a little out of place among the traditional services we’ve seen for decades. As consumer preferences change with innovative technology moving forward, companies can either adapt themselves, or watch their competitors adapt and capture the market share.

Blockbuster wasn’t taken down by Netflix. Blockbuster was taken down by their own failure to respond to the changing preferences of the consumer.

What are the current preferences of families in the funeral industry? Here are a few I believe are trending:

• Communication through text message
• Online pre-planning
• Online purchases
• Video content
• Online reviews
• Transparent pricing
• Social media

Would you add or remove any from this list? Where is your funeral home or cemetery at in adapting to these preferences?

The secret sauce we look for in the funeral industry is this: implementing technology into our funeral homes and cemeteries that create more personal experience, trust, and simplicity for the families we serve. By selecting innovative services that use this key ingredient, you can ride the wave of innovation and simultaneously create a deeper personal connection with your families.