Both of these businesses deserved to go under. Let's start with Blockbuster.
Back in 2004 Blockbuster were offered the opportunity to buy Netflix for 50 million.
This was a big mistake, however at the time you wouldn't see it like that.
Blockbuster were the market leader in home movies and video games, at this point Netflix was only a mail subscribe service.
Blockbuster chosen to compete rather than buy Netflix, they were not ignorant to mail service and they tried to launch Thier own versions.
The problem with offering subscription service was they lost a ton of profit they got from late fees, they needed late fees because it they need the movies back in store and the late fee was the motivation for customers to return there movie on time.
Around 2005 they stopped late fees and started bleeding money.
From here there was only one way the company was going to go, they attempted to launch there subscription service were you could return your movie to.any store, and even linked up with another company to launch a streaming service (before Netflix offered streaming) but they never went all on, as they believed video stores were still the future.
At the time you would have believed this too.
The decline continued until around 2010 when they went bankrupt.
Log in to comment