Venkatesh Rao’s Post

Story of $8.4 Billion to Zero in 16 years In the late ‘90s, Blockbuster was the dominant player in the video rental industry In 2010, they filed for bankruptcy The crux of Blockbuster’s dramatic fall? - Lack of foresight and unwillingness to adapt Contrast this with - Netflix, then a small DVD-by-mail service. Today, it is valued at $204 billion The secret? They saw a world beyond physical media: Streaming Netflix founder Marc Randolph wrote the following in his book - “We looked ahead to a future without DVDs or mail” Their pivot to streaming was a game-changer Netflix innovated, while Blockbuster clung to it’s retail model. This story isn't just about corporate giants; it's a lesson for all entrepreneurs: Innovation isn’t a luxury; it’s survival. Are you adapting fast enough to stay relevant? Share how you’re embracing change below. #storysaturdays #adaptability

The Blockbuster Story. Even the most successful IPs can fall if not managed properly. Let’s explore some well-known IPs that struggled or failed and what we can learn from them. 1. Blockbuster: The IP That Fell BehindIn 2000, Netflix offered to sell itself to Blockbuster for just $50 million, but Blockbuster turned it down. This refusal to embrace streaming marked the beginning of its downfall. 2. Ignoring the Shift to StreamingWhile Netflix evolved with streaming, Blockbuster stuck to physical rentals. By the time Blockbuster tried to pivot, it was too late. Netflix became a $30B+ revenue giant, leaving Blockbuster behind. 3. Bankruptcy and Missed Opportunities In 2010, Blockbuster filed for bankruptcy with $1 billion in debt. They failed to innovate, becoming a classic example of how stagnant IP leads to failure in fast-changing industries. 4. From Market Leader to One Store LeftAt its peak, Blockbuster had 9,000 stores worldwide. Today, only one store remains in Oregon, USA now more of a nostalgic attraction than a functional business. 5. Evolve or Be Left Behind Blockbuster’s story teaches us that even dominant IPs can crumble without innovation. Success comes not from staying the same but from evolving with market changes Picture credit: Tige Savage

🎬 What if Blockbuster had AlphaSense when Netflix came knocking? Picture this: It’s the early 2000s, you’re Blockbuster, and Netflix walks in like a startup in a garage offering to sell you their company. You laugh, make a note to charge them late fees for their audacity, and send them packing. Fast forward - Netflix is now THE blockbuster, and Blockbuster is, well… a trivia question at pub night. 🥲 But what if Blockbuster had AlphaSense back then? 🤔 💡Market Insights: Blockbuster would’ve known “streaming” wasn’t just what happens to VHS tapes left out in the sun. 💡 Financial Analysis: They might have seen the subscription model’s potential and how their late fees were driving customers to therapy sessions. 💡 Sentiment Tracking: Public feedback? Maybe Netflix wasn't just a cute red envelope in the mail but the future binge-watch enabler for millions of Breaking Bad fans. 💡 Competitive Intelligence: Blockbuster would’ve realised that "unlimited rentals" with no store trips was not a fad, but a lifestyle. Maybe they’d have bought Netflix instead of ghosting them. 🤷♂️ Or at least built a decent app. The takeaway: Never underestimate what market intelligence can do for you—or who the next disruptor will be. 🚀 Don’t be Blockbuster, get in touch and let’s see if AlphaSense can help you avoid the cost of uncertainty! #Leadership #Strategy #AlphaSense #Netflix #BusinessIntelligence #Innovation #IfICouldTurnBackTime

In the latest blog post on our website, we explain that adopting new tech helps avoid business pain and losses. One of the most well-known examples of a company failing to adapt is Blockbuster. In the early 2000s, Blockbuster had the opportunity to adopt a digital streaming platform similar to Netflix but chose to stick with its traditional brick-and-mortar model. The board lost confidence in a CEO named Antico, who was trying to eliminate the collection of video rental late fees and adopt a new online model. According to a Forbes article, “Keyes was named CEO and immediately reversed Antioco’s changes in order to increase profitability. Blockbuster went bankrupt five years later.”(1) While Blockbuster, as a company, was gasping for its last breath, Netflix soared to become a dominant force in the entertainment industry. Blockbuster's downfall is a stark reminder of the risks associated with not embracing new technologies. Read more stories about how failure to adopt new tech has caused business grief in our blog post titled “How Ignoring Tech Results in Profit Losses: The Cost of Stagnation.”  https://oal.lu/lMYgc  

I just finished reading an article about the competition between Netflix and Blockbuster in capturing the high-end market back in the days. Netflix effectively utilized the Disruptive Innovation Model (DIM) to challenge Blockbuster's dominance and eventually not only captures the high-end market but the low-end market as well. It was a fascinating read, shedding light on the strategies employed by both companies. The story practically demonstrates the thoery of disruptive innovation by Clay Christensen Read the story here👇🏻 https://lnkd.in/dGDbBXQB Share with us any about disruptive innovation that you know and how it disrupted the incumbent market players #Innovation #Agritech #ICT4D #DisrutptiveInnovation #Africa #Nigeria

I often think about Blockbuster and how they had every chance to become what Netflix is today, or even better. They had the movies, a strong customer base, a well-known brand, plenty of funding, and great momentum. Yet, they repeatedly said no to innovation. Why did they refuse to see where the market was heading? What do you think held them back from adapting to change? #innovation #business #statusquo

No company is too big to fail!   Blockbuster had 'late' fee for the movies it rented, So if you return the movies late you pay more.   It was so huge that they used to make $800 million per year!  ->40x the asking price for Netflix!   Frustrated with this, Reed Hastings created a company named Netflix, and we all know the story!   Let's cover the reasons for blockbuster's failure!   1. Underestimating technology: Blockbuster clung to physical stores only and was too late for digital!   2. Ignoring Consumer Trends: Customers were looking for convenience and flexibility, better offered by online service.   3. Complacency in Success: Blockbuster felt invincible and never looked for innovation and adaptation.   ->Learnings   1. Innovate or peril: No matter your industry, staying relevant is the key.   2. Customer First Strategy: Always prioritize what your customers want—not just what works for you.   3. Flexibility is Key: The willingness to pivot at the right time   Best, Yashvardhan   Tags: #BusinessStrategy, #Innovation, #Netflix, #Blockbuster, #LessonsLearned, #DigitalTransformation

Business is all about challenges on daily basis. What decision we take on daily basis either increases or decreases probability of making it successful or unsuccessful in long term. ABOVE ALL IT IS ALMIGHTY WISH FOR EVERYTHING IS NECESSARY. History has shown us many very big empires falling and new empires establishing. Nothing new in it. Change is most permanent thing in world. Either we have to change ourselves or nature will do so.

There is more to learn from past as ‘what not to do’ than ‘what to do’. Leaders need to stay away from ‘not knowing the unknown’.

1994: Blockbuster is the undisputed leader in video rentals, with thousands of stores worldwide. 2000: Netflix offers to sell its business to Blockbuster for $50 million; Blockbuster declines. 2002: Blockbuster reaches its peak with over 9,000 stores and $5.9 billion in revenue. 2004: Netflix goes public, showing early signs of success with its DVD subscription model. 2007: Netflix launches a new service, called a *streaming video*; Blockbuster stays focused on physical rentals. 2010: Blockbuster declares bankruptcy, struggling with debt and a shifting market. 2013: Blockbuster closes its last corporate-owned store. Today: Netflix is a global entertainment giant, while Blockbuster is just a memory, known for what it didn’t see coming.