![]() ![]() And by the time you do, you’re already one step behind. This goes to show that, even if you don’t evolve, it’s likely that your competitors will do so without you noticing. By the time Netflix began its meteoric rise, Blockbuster had already reached stagnation. Other than serving as an allegory for future businesses, in my opinion, the demise of Blockbuster is a case of extreme hubris - and, more importantly, what happens when you oppose change. In 2010, Blockbuster filed for bankruptcy protection due to losses, debt and competition from Netflix and other on-demand services. That same year, the company even turned down an offer to purchase Netflix for $50 million. In 2007, Blockbuster saw new leadership and a shift in its business strategy that emphasized online streaming. Rather than partner up, Blockbuster continued to focus on physical rental stores. ![]() However, as the story goes, Hastings was laughed out of the room. Netflix had just begun subscription services, and Hastings saw a future in this model. He suggested a plan in which Netflix would handle Blockbuster’s online services, and Blockbuster would manage Netflix’s physical DVD rentals. But I think attributing the fall Blockbuster solely to a lack of customer-centricity is a bit of an exaggeration, and that the demise of the former video rental giant was more so spurned by a resistance to change.īlockbuster Was In Charge Of Its Fate, But Refused To Changeīack in 2000, when Netflix was still an up-and-comer, Reed Hastings, the company’s CEO and cofounder, proposed a partnership to Blockbuster’s CEO, John Antioco. Sure, late fees were a major pain (and, coincidentally, one of the reasons that Netflix was founded in the first place). Netflix did, in part, overtake Blockbuster. Not being customer-centric is the biggest threat to any business.” Ridiculous late fees did.” The post makes a slew of similar comparisons before ending with the following claim: “Technology by itself is not the disruptor. It begins with: “Netflix did not kill Blockbuster. I’ve recently seen a meme making the rounds on LinkedIn and Facebook. And when companies have the foresight to adapt accordingly, they’re at the center of this change. However, the core of this progress is innovation. And cultural interests and trends influence viewer content and consumption preferences. New ideas inspire an upheaval of tradition. This history is obviously marked by growth. Since then, we’ve seen the rise of cable programming, the introduction of pay-per-view programming and the growing trend of digital streaming. It wasn’t until 1986 that these heavy hitters faced competition from Fox, which emerged as the fourth viable commercial network station. Beginning in 1948, and continuing for decades, the airwaves were dominated by the big three networks: ABC, CBS and NBC. Let’s consider the history of television. ![]()
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