This weekend I rented a movie from Blockbuster, and I couldn’t think how the web has completely changed their game. Truth be told, it was probably Netflix that made the movie giant change their distribution model, but nonetheless, Blockbuster has masterfully used the web to do so.

Think about their old model of:
1) Go to the store
2) Walk around for 15 minutes trying to find a movie you want
3) Rent the movie (if it’s in) and then pray to God you don’t forget to bring it back on time
4) Return in 1-5 days with the movie.

Now its:
1) Browse online in the comforts of your home to find the movie you want
2) Read reviews from other people to decide if you want to use it.
3) Add it to your queue
4) Movie shows up 1-2 days later
5) You return it whenever you want
6) And oh, if you want another movie NOW, simply take your movie to the local Blockbuster and exchange it for an in-store rental.

With one fell swoop, Blockbuster made mom-and-pop rental stores obsolete, made Netflix one-dimensional and dominated the movie rental business once again. But, Blockbuster better not get too comfortable because another web distribution model has arrived (and has been trying to make a breakthrough for sometime): the online, download-it-now-and-watch-it model.

Apple’s iTunes movie rental and other services are coming. Blockbuster even has its own service, Movielink, which it acquired in 2007.

Either way, the web is rapidly changing how businesses do business. Look at your current distribution model. Can the web change how you distribute your products or services?

Bottomline: Leveraging the web can completely change your company, if not your industry. Don’t be changed, change it yourself.