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Blockbuster Once Turned Down An Offer To Buy Netflix


SabreFan1

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I believe the guys who didn't buy netflix were also the same guys that sold the company for a decent amount a year or two before it went tits up.

I'd say a worse business decision should be awarded to the bozos who bought blockbuster when the writing was clearly already on the wall.

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I believe the guys who didn't buy netflix were also the same guys that sold the company for a decent amount a year or two before it went tits up.

I'd say a worse business decision should be awarded to the bozos who bought blockbuster when the writing was clearly already on the wall.

Just because they bought the company when it was going "tits up" doesn't mean it was all loss. Not only can they write off much of the purchase, but the valuation of intangible assets absorbed may be much more than what they paid for.

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Back then Netflix had only 250000 subscribers for their DVD service. Hardly something really worth investing for a huge company like Blockbusters.

Plus, why would they invest in a company that's outright competing against them?

Hindsight is 20/20, but at the time, they sort-of made the right decision.

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Back then Netflix had only 250000 subscribers for their DVD service. Hardly something really worth investing for a huge company like Blockbusters.

Plus, why would they invest in a company that's outright competing against them?

Hindsight is 20/20, but at the time, they sort-of made the right decision.

In the bold is the compelling answer, because they indeed were direct competitors.

In the late 90s when DVD was becoming adopted in the mainstream, I read numerous articles online suggesting that the future wasn't discs but large storage mediums. The technological writing on the wall could be seen from a long time out.

I worked for BB in San Francisco right out of high school in 2000 and it was clear then their strategy was not to be innovative or compete, it was to buy up competitors, anti-competitively undercut competitors who refused their offer, then buy up their inventory when they went kaput and raise the price gouge their customers on rentals and late fees (with an ability to severely harm someone's credit) when they had no other competitors.

So it's surprising that they would pass on a surging direct competitor. Thanks to this, Netflix adapted to the moves away from discs over to streaming (now called "cloud") services, while BB continued their futile strategy of fighting technology and trying too hard to control consumers vis a vis "retail options". It would up effing them in the end.

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I may be wrong, but did video streaming even exist in 2000? I seem to recall the internet being a very slow place in 2000, youtube didn't even exist until '05 if I recall.

It existed before '05, but I think that is when Google bought it. At the time, youtube had a lot of copyright infringement issues, and I assumed that once a wealthy company like Google bought it, that it would come under extensive litigation, making it unprofitable.

In effect, I predicted Youtube would die out within a couple years.

:sadno:

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It existed before '05, but I think that is when Google bought it. At the time, youtube had a lot of copyright infringement issues, and I assumed that once a wealthy company like Google bought it, that it would come under extensive litigation, making it unprofitable.

In effect, I predicted Youtube would die out within a couple years.

:sadno:

Google went all in on them.

I worked for them at the time they were importing their non corporate staff from the Burlingame Youtube office to the Mountain View Google office. They were given the royal treatment and put in building 43 pretty close to the founders' offices.

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It existed before '05, but I think that is when Google bought it. At the time, youtube had a lot of copyright infringement issues, and I assumed that once a wealthy company like Google bought it, that it would come under extensive litigation, making it unprofitable.

In effect, I predicted Youtube would die out within a couple years.

:sadno:

Just looked it up, YouTube was founded in Feb '05, & purchased by Google in Nov '06 for 1.65 Billion with a B...damn, that's a quick & astronomical return on investment.

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Just looked it up, YouTube was founded in Feb '05, & purchased by Google in Nov '06 for 1.65 Billion with a B...damn, that's a quick & astronomical return on investment.

If you look at the marketshare at the time of video sites, I think Youtube had easily doubled/tripled up on it's nearest two competitors, one of them being Google, the other like.. Facebook or Myspace. Google just jumped on an investment any company with the money should have made.

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Back then Netflix had only 250000 subscribers for their DVD service. Hardly something really worth investing for a huge company like Blockbusters.

Plus, why would they invest in a company that's outright competing against them?

Hindsight is 20/20, but at the time, they sort-of made the right decision.

Best Buy bought Future Shop, GM bought Cadillac, Sobeys bought Safeway...it's literally been happening for well over a century. When you buy a rival company, they are no longer your competitor.

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Hard to compare the Netflix of 2000 to the Netflix of today.

Netflix was an online movie mail order. You went online and got your dvd's in the mail.

Went they started video streaming, DVD's went obsolete.

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Hard to compare the Netflix of 2000 to the Netflix of today.

Netflix was an online movie mail order. You went online and got your dvd's in the mail.

Went they started video streaming, DVD's went obsolete.

I remember Netflix was hurting Blockbuster even before streaming. People thought I was weird when I would tell them I still got my DVDs from Blockbuster stores and even weirder still when I started using Blockbuster instead of Netflix for my mail delivery DVDs and then eventually Blockbusters own streaming service.

I only finally stopped using Blockbuster when they kept sending me scratched DVDs every other time I got one in the mail. By that point Blockbuster was a shell of it's former self.

Streaming was just the final shove that gave Blockbuster a mercifully quick death.

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I miss Blockbuster

Even though I stayed a customer of theirs until almost the end, I don't miss them one bit. They were a very arrogant and greedy company. They nickled and dimed their customers every chance they got. That only changed once they started getting their butts whooped by Netflix.

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