But this is no elegy for Blockbuster, no lament for how Netflix killed the video star. There were plenty of those when the company filed for bankruptcy protection in 2010, shriveled to 300 stores and then mostly closed. While Netflix’s model clearly had some compelling aspects, it also had some obvious disadvantages. Moreover, because its customers received their videos by mail, the service was somewhat slow and cumbersome. People couldn’t just pick up a movie for the night on their way home.
Since http://moviedaddy.net/‘s founding in 1985, the chain refused to stock adult films in order to portray the brand as family-friendly.[142] However, the company did carry R-rated and unrated films. They might all come from different walks of life, but they all bring a lot of heart to keep the little engine chugging. Its 9,000-strong chain had been reduced to one single franchise in Bend, Oregon. As a result of Blockbuster’s complete shutdown, one can only speculate about what could have been for the once home-movie giant.
In 1992, the company also expanded overseas when it bought out video-rental chain Ritz in the UK. In 2004, Blockbuster started its own an online DVD rental service to compete with Netflix, but it wasn’t enough to save the company. Blockbuster UK operated trade functions in all their stores, buying and selling pre-owned DVDs, console games, and gaming accessories. Stores offered either store credit or cash for trade-ins, and would price-match with competitors.
They enjoyed massive amounts of success; however, this was all brought to an end due to their failure to innovate. People became reliant on methods which caused them the least amount of hassle and the two aforementioned companies did not adapt. Their attitude, however, to the idea of adapting their strategy is what has baffled most people. Having such a narrow-minded approach to the idea of innovation is most definitely going to make you struggle, so it is hard to fathom why the two brands thought as they did. Nonetheless, let it be a lesson to all aspiring business giants – your life can be made much easier if you innovate according to the demands of the people. Reluctance to innovate can crush a business, so don’t let it crush yours.
- At the time, there were only 300 Blockbuster stores still in operation, Business Insider reported.
- It created a mutiny within the company and eventually the gamble was reversed.
- On February 13, 2013, Deloitte announced a further 164 store closures, leaving 204 stores trading in the UK.
- As each threshold is past, the next group becomes more likely to adopt the new idea.
In fewer words, stubbornness (and a lack of willingness to innovate) can leave you in a dangerous position, especially when everyone around you is innovating. Blockbuster is such a throwback to another time that the trailer for “Captain Marvel,” which is set during the 1990s, opens with the title character crashing through the roof of one of its stores. Such holdouts have bucked the norm in the retail and restaurant industries, which have shed stores by the hundreds in recent years. Fifteen years ago, a movie fan could go into any of Blockbuster’s 9,000 stores and walk out with a Steven Spielberg hit.
Once they’re on board, those in the early majority begin to feel comfortable giving it a try. As each threshold is past, the next group becomes more likely to adopt the new idea. The best way to understand thresholds is to look at the diffusion of ideas model formulated by Everett Rogers in the 1960’s.
We have all hear the common phrase, “don’t rest on your laurels”. Essentially, resting on your laurels means that you are being complacent or arrogant in your mindset. You are unwilling to change your mindset, either because you that think your current one is better, or because you may fear what the change could cause. Stubbornness in this sense – i.e. lacking the drive to change – can be dangerous because it means that you could be left behind whilst everyone around you is running miles ahead (because they decided to innovate). Your complacency could put you at a disadvantage because you may miss out on the benefits of a fresh, updated mindset.
Five years later, Viacom took Blockbuster public, as the number of stores reached 6,000 globally. Most recently on Wednesday, a lawyer tweeted about Blockbuster making a comeback, and the retailer nudged the attorney to make a business pitch. Blockbuster also has a tendency to troll social media users or post playful messages, prompting the public to engage with the company on Twitter. “Remember when you went to rent a new release and it was out?” tweeted one social media user. “So you started looking behind each dvd box just to make sure lol.”
His company was different than other rental stores because it offered customers a selection of 8,000 VHS tapes with the help of a modern, computerized check-out process, while other, smaller rental stores could only offer a couple hundred movies. Stocked with at least 8,000 tapes, the store was much larger-scale than other video stores at the time, the website said. The video rental store had 400 stores around the country in 1988. Blockbuster Express was a movie-rental kiosk brand sublicensed for use by licensee NCR Corporation. Park stars as Timmy, a struggling video store manager who loves his job, customers and movies.
The irony is that Blockbuster failed because its leadership had built a well-oiled operational machine. It was a very tight network that could execute with extreme efficiency, but poorly suited to let in new information. Antioco’s fatal flaw wasn’t one of intelligence or capability, but a failure to understand the networks that would determine his fate. And it’s imperative that we start thinking about them more seriously.
They continued to offer their in-store service for a number of reasons which, to many, may seem somewhat foolish. Blockbuster believed (according to their data) that people liked – and arguably even preferred – going into their stores. Blockbuster felt that their customers enjoyed the experience of opening their games and movies so that they could see the contents in their entirety. Moreover, Blockbuster also felt that their customers enjoyed the possibility of seeing neighbours around the stores. To me, their reluctance to go digital is ridiculous and it is made all the more ridiculous when you consider the reasons that they gave for their decision. As a result of their decision, Netflix managed to soar past them as they attracted millions of keen customers who wanted to view their movies or favourite shows on their devices.