Damn, poor Blockbuster, I loved the one we had in our town, used to rent games and movies from there, getting ice cream or pop corn, checking out what games they had to rent, even went to the midnight release of Black Ops 1 there.
I'll always have good memories of Blockbuster, it was a nice little place.
To think all they needed to do was to buy Netflix for the mere $50 million when they had the chance.
That's because back in 2000, Reed Hastings approached former
Blockbuster CEO John Antioco and asked for $50 million to give away the
company he founded — Netflix.
Antioco, thinking that it was a
"very small niche business," ended the negotiations and didn't buy
Netflix, which at the time was a DVD mailing service, according to Variety.
Now Netflix — just short of being worth the same as CBS last year —
soared past the television network owner with a $32.9 billion market
valuation. Netflix also reached the 50 million mark in subscribers of its paid service and became available in 40 countries, CNN Money reported last year.
This is what happens when you fail to predict major market shifts. Sad to see them go but - they made a huge mistake awhile ago.
It's crazy how his ego regarding streaming video let the biggest business decision he could have ever made slide
In 2000 maybe it was a moot niche, but look at how well it's going for both steam and netflix. Direct streaming and direct downloads are such a massive idea that it completely changed the market.
hindsight is 20-20
Blockbuster was popular back in the day, but the internet changed everything
I don't think anyone back in 2000 could have predicted what Netflix would become through, and if you went back and told them they'd laugh in your face.
I know it's easy to say this now, but is it that outlandish to assume we'd be streaming video over the internet?
At the time when loading pictures was sometimes difficult... Yeah, it was.
Maybe to some stuffy 50 year old.
If you were like many of us, and 16 or 17 at the time of Youtubes creation and popularization, the understanding that all content was going to be online before too long was VERY apparent.
The 2000's were well past the point of "Loading pictures was difficult". By 2007 we had Facebook, Youtube, and the majority of the internet as we know it today in a recognizable form.
Come on, in the days of dial up and 64k warnings on threads with a reasonably small number of low res photos on them, how many people would have thought it possible to stream HD video over the internet within 10 years? Sure, it would have been a consideration but a lot of people wouldn't have thought it to be that near in the future. Back in the early 00s, people were still going out and renting, it was still a viable business and I don't think people expected it to decline for a long time. I do remember mail rentals becoming a thing around the mid 2000s, but that was still rental. Netlfix didn't even start their streaming service til 2007, and it took another couple of years for it to take off properly too.
Hindsight is 20/20 and we can all look back and say "wow they were idiots for not buying Netflix when they had the chance", but no one could have predicted the enormous beast that it would become, particularly since Netflix weren't the only mail order rental thing going at the time (at least not in the UK). They just happened to have the right ideas and do the right things at the right time.
It wasn't just Netflix that killed it, bad management and CEO changes made it impossible to function.
It amazes me that Titans like Blockbuster, Sears, Toys R Us, ect can crack and fall apart so easily because of management and bad decision making.
Sorry, you need to Log In to post a reply to this thread.