Blockbuster laughed at Netflix partnership offer in 2000

[Modbert]

Blockbuster laughed at Netflix partnership offer | Media Maverick - CNET News

So, here's another fun fact to look at: Blockbuster CEO John Antioco was approached in 2000 by Netflix CEO and co-founder Reed Hastings about forming a partnership, recalled Barry McCarthy in an interview he gave to the Unofficial Stanford blog two years ago. I turned up McCarthy's interview while researching a story about why he's leaving Netflix after 11 years as chief financial officer.

"I remembered getting on a plane, I think sometime in 2000, with Reed [Hastings] and [Netflix co-founder] Marc Randolph and flying down to Dallas, Texas and meeting with John Antioco," McCarthy said in the interview "Reed had the chutzpah to propose to them that we run their brand online and that they run [our] brand in the stores and they just about laughed us out of their office. At least initially, they thought we were a very small niche business. Gradually over time, as we grew our market, his thinking evolved but initially they ignored us and that was much to our advantage."

It's easy to kick Blockbuster, which filed for bankruptcy protection in September, now that they're down, but the company's overconfidence regarding Netflix can provide lessons today. The past week saw executives from the cable and entertainment industries predict that the early success of Netflix's streaming service would be short-lived. They argue that Netflix's supply of content from studios and TV networks will soon slow down to a trickle.

McCarthy told the Unofficial Stanford blog that for Blockbuster it was a classic case of the innovator's dilemma: "You end up competing with a business that you initially ignored."

Interesting article that gives a little insight into just how underestimated the internet was and how today's laughing stock idea could be tomorrow's newest multi-billion company.

 

[Epsilon Delta]

Now we laugh at Blockbuster, hahahahahahaha!!!

 

[william the wie]

Book stores will be the next out of the door, with banks and sticks and bricks colleges other than labs soon to follow.

 

[editec]

Blockbuster laughed at Netflix partnership offer | Media Maverick - CNET News

So, here's another fun fact to look at: Blockbuster CEO John Antioco was approached in 2000 by Netflix CEO and co-founder Reed Hastings about forming a partnership, recalled Barry McCarthy in an interview he gave to the Unofficial Stanford blog two years ago. I turned up McCarthy's interview while researching a story about why he's leaving Netflix after 11 years as chief financial officer.

"I remembered getting on a plane, I think sometime in 2000, with Reed [Hastings] and [Netflix co-founder] Marc Randolph and flying down to Dallas, Texas and meeting with John Antioco," McCarthy said in the interview "Reed had the chutzpah to propose to them that we run their brand online and that they run [our] brand in the stores and they just about laughed us out of their office. At least initially, they thought we were a very small niche business. Gradually over time, as we grew our market, his thinking evolved but initially they ignored us and that was much to our advantage."

It's easy to kick Blockbuster, which filed for bankruptcy protection in September, now that they're down, but the company's overconfidence regarding Netflix can provide lessons today. The past week saw executives from the cable and entertainment industries predict that the early success of Netflix's streaming service would be short-lived. They argue that Netflix's supply of content from studios and TV networks will soon slow down to a trickle.

McCarthy told the Unofficial Stanford blog that for Blockbuster it was a classic case of the innovator's dilemma: "You end up competing with a business that you initially ignored."

Interesting article that gives a little insight into just how underestimated the internet was and how today's laughing stock idea could be tomorrow's newest multi-billion company.

First the revenue potential was overestimated (note the internet bubble) then it was underestimated by some.

But what I am seeing is the steady growth of internet sales and services.

Sure I still buy most things in local stores, but every year I find that some things I used to buy at local stores, I'm buying online.

I pay my bills online, now, too.

WE are, as a society, increasingly dependent on the NET.

Hell, we've even got an international CYBER WAR being conducted by cyber anarchists who are pissed about the WIKILEAKS affair.

Now perhaps this development doesn't impress some of you, but to me, this is SCIENCE FICTION come to life.