How Netflix (and Blockbuster) Killed Blockbuster

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I was one of the customers Blockbuster alienated with their strict late fees. Even though I was 10 minutes late they held on and I never rented from that new store ever again. It closed eventually.
Toronto, ON CA

Alex 4:21AM September 24, 2010

I can remember all during the school when friday would arrive and I would rent a snes, than n64, and finally gamecube and wii. A major mistake was the stupid game freedom pass rent a game for a month then trade it in for a new one wouldnt someone just want to buy it. what comes down to it for 4 kids it more make more sense to buy a movie at best buy.

ben macken of MN 12:38AM September 24, 2010

Look at the companies on top, they never do not sit still and collect their profits, they are always boldly going forward.
Blockbuster lost their market share to netflix and Redbox; when they should have bought redbox when it was small. Then grown it into BlueBox on location or something similar. (offering features like special movie reserve, where a person can reserve a particular movie, go to the box and they will be there at a set time, or something forward looking like that. Hey I am going to the store Thursday night to get food for the weekend, I want "Weekend at Bernie's", and "Throw mama from the train" for the week...
After watching Circuit City tumble from their position, Next in line is RadioShack with WalMart and Best buy taking square aim at The Shack's only market left. With a little tweak of the dial RadioShack could have been the Audiophile's emporium, and Home Theater headquarters.
Walmart is in the midst of remodeling their stores to install a "radio shack" in them, offering more small electronics, televisions and just about anything else you can find at your local Shack. are they aiming at Best buy or just trying to keep up with the Jones'?

Joe usual of IN 7:42PM September 23, 2010

Look, there is a reason why Blockbuster declared bankruptcy while Netflix has done well; however, although these are good points, these aren't the reasons. For instance, we prefer Blockbuster because their web interface is great. They recommend movies quite well, and they deliver them on time. To top it off, when we're done with the movies, we drive them over to the store, and exchange them on the spot for 2 or 3 new movies immediately. We don't have to wait to mail them back and then get new movies again through the mail. When we return the ones we've swapped, they then send the movies we have in our queue on time. I'm sorry, but this is way better than Netflix. They also don't charge us late fees on the stuff they mail us.
No, i think the reason they lost so much money includes poorly laid out stores, but also i'm sure the management must have been sucking all the money out of the company and then saying - oh we're losing money - do you like my new yacht? Boards of public companies in America need to stop hiring managers just because they have managed big companies. Hire someone who shows initiative and is smart and wants to grow the company even if his ideas aren't popular - look at Apple. Those idiots fired an innovative person, hired other managers who were obviously successful, and they stunk. They nearly bankrupted the company. Boards of Directors in America should be systematically rounded up and tar and feathered on television. They are more often than not fools who only care how much money they can get in their pockets without kiling the golden goose. Sometimes the goose dies. Often it does.

jdavidlove of TX 5:45PM September 23, 2010

Two great observations on the BBI/NFLX story that I've seen... worth a read.
http://thinkforamoment.typepad.com/think_for_a_moment/2008/08/nine-years-later-and-a-new-ceo-blockbuster-still-does-not-get-it.html
http://thinkforamoment.typepad.com/think_for_a_moment/2008/07/back-to-the-future-no-wonder-the-stock-is-at-258.html

Spatchcock of CA 3:40PM September 23, 2010