Netflix vs. Blockbuster

I just came across this article, which discusses how a few years ago, Blockbuster CEO John Antioco was approached by Netflix CEO and co-founder Reed Hastings about forming a partnership. This was over 10 years ago now (whoa, 2000 was that long ago?) and Netflix suggested a relationship in which Netflix ran the online brand and Blockbuster focused on brick and mortar store branding.

What was Blockbuster's response?

Apparently, Blockbuster figured that Netflix was an extremely niche business (to be fair, at the time, they might very well have appeared to be) and they were going to stay that way.

Well, within the past decade, Netflix has completely toppled the traditional method of "going to the video rental store to rent a movie" with their own methodology of mailings and streams. The subscription model that Netflix developed led to speedy growth, and today, they're basically viewed as the way to rent movies and TV shows.

This is fun for me to read because it really shows the exponential growth of technology within the past few years. It's so amazing to see how quickly a business can come out of no where and completely revolutionize and simplify something we all took for granted for so long. It really makes me wonder what the next big American business is going to be.


Jeremy said...

They actually had the opportunity to buy them for $50mm way back when. They weren't making a profit at the time so Blockbuster passed. Too bad for them. I knew right from the start that Netflix was going to be huge. Too bad I didn't buy stock when it was $7 a share!

Christopher said...

How far technology has come in the last ten years is amazing. I remember back in '00 that it was the latest thing to get a phone with a color screen.

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