Did Blockbuster even stand a chance in the first place?
By: Rhiane (Ren) 7.4
Ahead of the race!
Blockbuster was the top one rental service platform for DVDs and CDs and all those classic VHSs, until Netflix stepped in and took their number one spot in just 6 years. Netflix had just bloomed into the light, born in 1999. Netflix was ALSO a rental service exactly like Blockbuster, but how did Netflix beat them in such a short time period?
It all started with the birth of Netflix, and just like Blockbuster, it sold DVDs, CDs, etc. through mail. How did it outsmart Blockbusters in their own game?
In 1997, Reed Hastings (the founder of Netflix) had the idea to cancel out late fees from rented CD’s and DVDs. That is how Netflix, as we know it, was born. In 1998, Netflix started a website online, this was one of the steps that led them to victory!
In 1999, Netflix stepped up their game with a huge sum of money from an investor, Groupe Arnault! A private French company owned by Bernard Arnault. This extremely beneficial deposit launched the start of the subscription-based service. For $16 a month, 4 DVDS could be kept for any amount of time.
Up N’ Down
In the unfortunate year of 2000, Netflix wanted to sell themselves to Blockbuster. They needed assistance since they had a fall of debt, 58 million to be exact. Blockbusters, in a state of confidence and arrogance, did not accept the offer, which in turn, would have been such a great deal! Blockbuster was at the highest peak that brought Netflix to their knees. Netflix was in huge debt and was willing to sell their whole project to Blockbusters themselves, even if they were their main enemy.
Netflix has recovered and still existed. In 2001, DVD players were popular and have Reed Hastings a chance to bounce back. He sold them for cheap and that was incredible for the audience, but was the content good? Not so much, though he did makeup with the cheap price. In 2003 Netflix made a profit for the first time! 1 million subscriber mark! But now, the real fight begins… in 2004.
A Deserved Title
2004, the shelves of Blockbuster were beginning to pick up dust. They had realized that people were not so interested in CDs and DVDs anymore. So, what they did was launch an online website, to compete with Netflix. Though the Blockbusters team could tell you, the website was shabby and not professional, they failed to adapt as well as getting side-tracked in the stocks.
2005-2009, Netflix was just at the top, nothing stopping them. They were surging forward. Netflix had even more choices, more mainstream titles than Blockbuster! At this point, Blockbusters surrendered.
At last, the race has ended. Blockbuster failed to adapt to the recent changes and could not reach expectations with titles and content. They had tried to beat Netflix for 6 years while being side-tracked and falling into debt.
Did Blockbuster even stand a chance in the first place?
No, probably not. If they had bought Netflix, things may have ended differently. Legends must come to an end, should it not? This incredible 6-year fight inspired a lot of new streaming services! As good as Netflix. That is why you rarely see any CD’s and DVDs because of this industrial influence in the world of streaming services and many more general topics. Disney+, Prime video, Hulu etc. were influenced by Netflix’s decision, which, in turn, has led to multiple great streaming services! This war ended as a benefit, not a downfall. If Netflix was not successful, then what?
In conclusion, Blockbusters lacked way too much, they only focused on beating Netflix that they failed to realize that their own company was failing and falling into the deep abyss of debt, Leaving Netflix, the throne.
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