How Netflix KILLED Blockbuster… | Former Netflix CEO

[@2ssrs950]

As a 40yr old who remembers the 90s like it was yesterday. I really miss video stores it was so exciting going to the stores and hoping that all the copies weren't rented out of the movie you wanted to see. Meeting people taking a bit about movies getting their recommendations for a good movie. Man we we're lucky back in them days.

[@Tremelle_]

Absolutely

[@jameylane1591]

Except for AIDS.

[@theodorebelmont7922]

So cool being a teenager in the 90s. Especially the late 90s when society became darker and caters more to a young males life

[@deebee8825]

I'm 36 so I got to experience the video store era. I would go to a small one inside my grocery store called Videos and More. We'd go to Blockbuster too hit Videos and More was our spot.

[@RoseyRK]

@sinebar I feel sorry for you, 90s was the best. We had Britney Spears, you got Taylor Swift.

[@gbollystube]

Netflix didn't kill blockbuster, blockbuster killed blockbuster!, same way Kodak, Microsoft (Windows phone),blackberry,3dfx... all refused to innovate and get with the times

[@Mothball_man]

Wall Street killed blockbuster. Netflix has been subsidized for 12 years. Now raising prices and quality is tanking because the subsidies are over. Same as Uber and AirBnB.

[@joshuaam7701]

A great lesson in hubris.

[@kenstevens7855]

Agreed. Netflix streaming never could and still today doesn't come close to competing with Blockbuster by itself. People didn't replace Blockbuster with Netflix. They replaced Blockbuster with 1. Pirated downloads 2. Amazon rentals/downloads 3. Cable On Demand 4. Redbox 5. Netflix 6. Other streaming services The advent of original content on the premium subscription services and free content on services like Tubi and Pluto, greatly reduced or eliminated the demand for options 1-4, but those were significant drivers of Blockbuster's demise as well. It wasn't just one company's strategy that killed Blockbuster. It's Blockbuster's inability to adapt to technological advancements to create a more convenient product offering.

[@hijackhypergamy]

Not true. Blockbuster did move to streaming. They were retooling and "coincidentally" Carl Icahn the Deep State corporate raider took out Blockbuster. Many other facts related to this.

[@hijackhypergamy]

​@@Mothball_man💯

[@lililijo]

I remember when Blockbuster killed independent video stores.

[@buda3d2007]

I prefered the indies if given the choice, I refused to join blockbuster till had no other choice.

[@chrisgast]

Actually, an independent video store just recently closed permanently, years after Blockbuster did.

[@lachutequimarche8074]

Four Star Video in Kenosha, WI. Sad to see it go in 1996

[@TheraginSage]

Actual karma

[@YogaBlissDance]

YEP

[@ChalkanCheese]

A very polite and diplomatic way of saying mismanagement and lack of innovation.

[@patrickdempsey9706]

Even though it makes life easier I kind of miss that part of the evening when u go to a video store and choose an evening

[@GermanFrisbeeDog]

Me too

[@Qubnomil]

Even when you picked the wrong evening? 😂

[@patrickdempsey9706]

@@Qubnomil yep picking meant you committed

[@johncowan1993]

You have your mind set on a particular film but all the copies are gone so you have to pick something else & you hate it!

[@patrickdempsey9706]

@@johncowan1993 or discover stg surprisingly good that u normally wouldn’t take or u don’t turn off the movie after 10 minutes and discover it actually is great ( or terrible)

[@kidrenzo1]

I miss blockbuster so much, even when I went in there just to look what was there on the way home from school and college. Even the relationships created with the people who worked there

[@aaron.black107]

I sort of know what you mean. I remember HMV for the same in the U.K. late 80’s when all the music stars had life size cardboard cut outs in the window display. Michael Jackson bad tour ‘88 took over every window. It was amazing.

[@HawkEye3366]

I use to work at blockbuster. It was such a family feeling environment. I miss it dearly.

[@Sonsaiyon]

Bet your best part of the day was "you're an hour late, that will be 5 bucks pls." 😂

[@handyman4everyman]

Hahahah

[@MichaelGUZMAN-qs8ov]

Your CEO was a moron

[@JTMoney22]

the best part was the over priced candy but i use to love to search for a movie and find the one left

[@joannedunn2949]

I managed a Blockbuster in Fallbrook, CA (San Diego area) . Best job I ever had ! Loved my customers!

[@IOAwaits]

Back when jobs could still be fun and people wouldnt leave them every few months. You could actually grow a “family” at a job back then.

[@buda3d2007]

Video stores being in everyones neighbourhood and now no longer is the biggest shame, it was a big part of my social life to go pick out films to watch at the end of the week.

[@grapelund]

I miss the whole blockbuster night experience, getting your movies, games and food on a Friday or Saturday evening with your family was cool.

[@UpUpDnDnLtRtLtRtBAStart]

I remember this. They tried for years to work with Blockbuster. They denied the new model and look…

[@VulcanLogic]

Blockbuster reported a $2 late fee to my credit report. Not missed.

[@chrismalik1579]

Well, that's on you, not blockbuster, but I highly doubt blockbuster really did that.

[@VulcanLogic]

@@chrismalik1579 No they seriously did. From a late fee in the 90s.

[@imunozdominguez]

I analyzed this case during my MBA years, NETFLIX survived just due to the financial crisis. Debt became so cheap, that they multiples skyrocket, and the raised money saved them. Which at the same time Block Buster with their crazy overhead, future cashflow showed a deep decline, and finally killed them.

[@jdghegan]

Correct many don’t remember Blockbuster was also in the midst of doing DVD to mail rentals as well basically “stealing” the hybrid model he outlined as their commercial real estate portfolio began to fail.

[@dkgong]

And now the public library has replaced Blockbuster for me.

[@cmlxjcky]

It wasn't netflix that killed blockbuster. It was hubris and ignorance of the changing technological landscape. If it wasn't netflix, it would've been another streaming platform

[@Sonsaiyon]

I can swear it was downloads that killed blockbuster, could swear netflix wasn't a thing until after blockbuster down

[@AdamEntwistle]

Nope you're wrong ​@@Sonsaiyon

[@Sonsaiyon]

@AdamEntwistle going by the vid, it appears so... jst shocked it was bc of Netflix and not downloads. 😆😂 EDIT: Fck it, im throwing it in there... mandella effect 🤪🤣

[@pigs18]

Sears. Pan-Am. RCA. History is littered with behemoths that couldn't accept that the world was changing and they needed to change with it. I had a conversation with a Ford executive (2nd or 3rd in North American sales under Sisco Codina, all three of which were present) about buying my first car in 2004. I pointed out that there were only three cars under 20k at the time, the Ranger, the Focus, and the Mustang. I live in a suburb in the Northeast so it's not going to be a pickup. I said that the options for me are the Mustang or the (then) barebones Focus while GM was rolling out new cars aimed at younger drivers with flashy features like MP3 players. His response: "We just need to advertise better." Everyone in that room was fired about a year later (including me, but that was a different story).

[@iclapdyomoms10x]

I agree it did kill a whole experience, yall can say whatever you want!!! Sugarcoat it however you like! Facts are facts‼️

[@Eldeibi84]

There is something good to be said about shared culture about being in a store talking to strangers about movies.

[@oeao2841]

Brad Pitt in moneyball says "dont adapt u die"...blockbuster refused to adapt

[@gbuddah]

great story! but I do miss the video store. There was an independent shop in my neighborhood that I could walk to. You had to drive to blockbuster so we only went there like once or twice a month. But the experience was still the same. I feel very fortunate to have grown up in those times.

[@deebee8825]

Same, we'd go to an independent one inside of our grocery store near the house like 1 mile away. It was much more convenient but the experience was the same like you said.

[@richardwills3927]

First time i played goldeneye for the N64. My dad rented it from blockbuster’s when it first opened in my town.

[@nickwiththemoney9141]

stream movies from home work from home get your food delivered home. sounds like a prison where you are your own guard

[@Greybeardmedic]

At minute 08:57 he says "Why isn't ...Blockbuster... selling gum and candy?" I distinctly recall a point in time when Blockbuster started stocking gum, candy, popcorn, and sodas in their stores. Too bad that wasn't going to save them from the Internet.

[@jcsbck]

They also gave out free trials for AOL

[@ronroca4387]

We need a Netflix movie on Netflix

[@j2323j]

On Hulu or Disney plus 😅

[@jean-paullederer5367]

Great interview. I forgot about the Merch! I remember going into Blockbuster in San Diego and it was starting to look like Hot Topic!

[@drstevej2527]

High speed internet killed it!

[@monsterman7721]

Nothing beats going on a Friday to rent movies and video games it was a magical times when it was quality over quantity and when movies were actually good.

[@IppiopaidFEEDBACK]

I remember having Netflix by mail and Blockbuster subscription service at the same time. I could get 3 movies at a time, in the mail from Netflix. And Blockbuster, I think I can get two movies at a time, I’m not sure if I picked them up at the store (across the street) or if they mailed them to me? And I had a Mac (I haven’t used the computer in so many years not that we have tablets and phones.) With an app called Handbrake, and I would just copy the hard drive. I think handbrake was an app, or maybe on computers you call them programs I forget. I didn’t given time, I had five movies and life was good. Now you have access to any movie you want on your cell phone

[@gelliebeane6789]

4:07 "You know, sometimes the only way out is through."

[@penoyer79]

it reminds of my favorite saying "If you're going through hell... don't stop. keep going."

[@r.d.493]

My parents and I lived adjacent to small mom-and-pop video stores for years. I was infinitely more sorry to see those go than I was for Blockbuster.

[@BLUEY-il3dx]

I would love to reopen a blockbuster video store in UK. Used to work in one when I was a kid. Great fun🎉

[@namco003]

I worked for Blockbuster, but not long after I left is when I started seeing Netflix envelopes, and even got a couple in the mail, some by mistake.

[@ramiallen6443]

My grandma would always take me into block buster while my mom worked. I remember renting ps2 games and picking out a box of candy! Occasionally they would give away the posters and signs and they gave me quite a few.

[@spextrekid9410]

I would love to see this Spielberg short about the robot chasing someone and working on a cost benefit analysis model.

[@rikardjohnsson9077]

He got it wrong... The movie is THX 1138 and it was George Lucas who was the director.

[@73amh]

The internet killed Blockbuster.

[@penoyer79]

it didn't have to. that's the point. if they had understood and committed to the changing tide... they could have out-netflixed netflix. netflix as we know it today could very easily have been blockbuster.

[@freedfree7933]

Used to go to the cabin for the weekend, would stop at grocery store for killer food, grab a case of beer or a bottle of whiskey then spend an hour in blockbuster trying to find the perfect 2 for 1 deal in the previously viewed for end of the night movies

[@tt4569]

I hate that my city of Santa Barbara is a retreat to so many rich elites who can never help but flex they have a house or retreat there

[@aaron.black107]

I was one of the first people I know that took up the Netflix subscription… being in the U.K. and talking to a call centre in California was mental at the time. And for £5 a month having a pretty bad library of shows / films to watch when nobody else was doing it was well worth the money in my honest opinion. Few years on that monthly fee hadn’t changed much but the quality of content had come on immensely. And I got to watch more breaking bad that I’d only seen the start of on FX before / during the writers strike. All around a great service I’m still paying for now over 15 years later

[@CanadianLoveKnot]

I miss paying late fees and arguing with a teenage manager.

[@ricknash730]

Blockbuster was everything to me. It was like heaven for movies.

[@alezandercorben4122]

Used to work for BB, thanks very much.

[@alezandercorben4122]

We used to release new videos every Monday, netflix updates whenever it feels like it.

[@ben-tendo]

I guess it’s the way of the world… local video rentals took out by blockbuster, then blockbuster taken out by Netflix… the question now of course is what comes alone to squash Netflix and surpasses streaming. I personally think a return to physical once people click they own nothing and can have it pulled from under them at a moments notice.

[@ronn4061]

I miss the days of late fees, new releases all rented out, having to drive there and back twice, having to find where your movies are on the shelf, the obscure movie description on the box, the checkout lines, the unplayable scratched dvds, the rewinding of the tapes, etc. the good old days.

[@JustinThomas-n5h]

*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*

[@JohnStafford10]

Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?

[@BellinghamOtto]

I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields

[@JustinThomas-n5h]

Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.

[@MalcolmCampbel]

Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.

[@MalcolmCampbel]

He is really a good investment advisor. Was privileged to attend some of his seminars.that's how I started my own crypto investment

[@horizonika]

I grew up going to the blockbuster on Kissena Blvd here in Queens NY, as a kid my brother and I use to go there every Friday pick up games pick up movies and from there we’d go to the supermarket get a couple of hoagies, chips and chocolate ice cream bars, go back home and venture off into new worlds. The journey of going to blockbuster was magical and I love the digital age but there’s just something about what blockbuster did for us as people that is sorely missed.

[@champdavidson1492]

I remember going to blockbuster as a family and then going to Kentucky fried chicken 😉.. and having a time of our lives.. and before returning… remember to rewind 😊😊😊 that great sound of the vcr

[@jeffyeung8158]

We gave up a store that gave us memories that had every movie and game available to rent... For a site that sure, has convenience but doenst have all the movies... Not even a quarter of the movies. And now we have to pay multiple sites to watch whatever movie we want

[@jcsbck]

The Netflix that put blockbuster out of business was the service that shipped movies to your house. Streaming came later

[@TheDiaryOfACEOClips]

📺 Watch the full episode here kzbin.info/www/bejne/foS5k3dth82Cfrc

[@familylifetoo9541]

Blockbuster was an experience. Something to look forward to...

[@WSK9002]

I mean, in a different set of circumstances, this is how Amazon, Apple, and Google/KZbin were able to gain footholds in Music Streaming Services, because they were are well known by the public at Large and still are, even though Spotify is still the leading streaming service globally, if the companies I listed previously didn't see the revolution that was streaming music, they wouldn't have gone out of business but they would have missed the boat, just like Blockbuster Video or Microsoft with the Zune.

[@DCoopVideo]

I was working in management at Blockbuster for 7 years. The Regional manager had told me Blockbuster could of purchased or teamed up with Netflix but said no. now look at them lol .

[@ronwade2206]

Blockbuster killed Circles Records and independent Record stores.

[@Eldeibi84]

I completely remember this period he is referring to. Blockbuster started doing the same model with the advantage that they had movies that Netflix simply couldn’t get their hands on, rare international, independent movies… then they just decided to stop. Never made sense to me .

[@MM-xc2bt]

Blockbuster had every movie. Don't have access to that streaming

[@Chrisratata]

Far more movies and shows get made today. It'd be unreasonable to expect a storefront to carry them all today

[@yusufali455]

Golden nuggets of history ❤

Blockbuster killed itself

[@joesalgadSF415]

I remember going to my favorite independent video store that went under because they couldn’t compete with blockbuster video. The owner told me they were closing the store and if you want to buy cheap NES and SNES I would sell them to you cheap. I was like WOW, this is how I completed my retro collection of Nes and Snes games.

[@AIJimmybad]

Lovefilm added online viewing to their disc model but I don't think they quite understood what they had.

[@Trendithings]

They were thinking with their egos not their heads.success can be deceptive atimes....a very important lesson to learn here.

[@jajaunevans9894]

I need A Movie from Netflix about over taking Blockbuster.. Classic David vs Goliath story

[@guestservice-w3q]

Ok now I'm waiting for what killed netflix episode

[@Yoni123]

WWE saved them. They got RAW starting in January

[@dominiclowe3640]

​@@Yoni123 wrestling is not that big anymore

[@IAMVICTORIUS777]

Going on a retreat when you're 50 million in the whole takes a special type of person!

[@j2323j]

Same kinda happened with master p dude turned down a huge deal with only like 400 dollars to his name and he was on a plane ✈️

[@178laaleros]

Hearing all this makes me wish we had a movie on how netflix firsr started or maybe some documentary

[@thoro4star]

Friday nights in blockbuster for the new releases was crazy but fun

[@CrawfishCuban]

Corporate retreat in cali = Diddy Party

[@thestaralchemist]

Hollywood video was my favorite because they had the good video games in stock.

[@Danny-fs1hk]

He is being modest. Blockbuster didn’t have the same DNA as Netflix. Thank God that Netflix kept going because they changed the entire game.

[@tenminuteperspective5765]

Lovefilm tried a similar version of that blended model and they collapsed

[@JonathanJScottFilms]

Lovefilm which was UK based and offered DVDs by mail as well as streaming was bought by Amazon back in 2011 and then turned into Amazon instant video on demand which then became Amazon Prime.

[@PAULWRIGHT-w2c]

What a cool guy

[@pigs18]

They had help from Blockbuster. Blockbuster intentionally made their rentals as confusing as possible as a policy to rake their customers over in late fees.

[@Chrisratata]

I don't get this. What's confusing about saying a movie has to be back by Sunday? Bring it back on time and you never have to pay a late fee. And yes I was there.

[@pigs18]

@@Chrisratata They would advertise a two night rental and five night rental. So if you rented a five night movie on Saturday it would need to be returned when? . . . . If you said Thursday, you paid a late fee.

[@nomatic1lordnomad90]

I tried to get hired at a BB but they were over staffed 😅

[@Eldeibi84]

Blockbuster was more concerned about collecting late fees, rather than providing value to customers.

[@Chrisratata]

Yet it was so easy for people to avoid late fees.

[@islah_channel]

My favourite store was Blockbuster in 90's

[@ismaeladen1204]

I am absolutely shocked that nobody has bought the rights to blockbuster and made it a streaming service yet…..with that name, reputation and iconic logo? Oh my god.

[@YogaBlissDance]

It's too late to jump in now, Netflix is the monster in the space.

[@ismaeladen1204]

@@YogaBlissDance Absolutely not…..that brand and its name is too big not to be a success…..Amazon is already taking up 30% of Netflix’s market share…..you gotta pump money into it and create hit shows.

[@CarlosCruz-ll5ez]

Blockbuster actually killed themselves by not paying a measly 50 million dollars to a company that would eventually later burry them

[@Space97.]

Fr 😂

[@melshewchuk9970]

I miss Blockbuster.. it was a weekend visit

[@Mr.Free2Play]

It’s funny how he says they’re $50 million in the hole & can’t really get a jet ✈️ , yet that somehow still able to afford a “Corporate Retreat” for its executives.

[@raulrodriguez4006]

Lots of block busters in my area were turned into plasma centers Lol

[@jyc313]

Blockbuster killed itself. Just like how Kodak offed itself back in the day

[@duerf5826]

The corporate raider that he was talking about… it was Carl Icahn, wasnt it?

[@MarkRodriguez-l4m]

We just miss the exotic blockbuster candies and snacks

[@RetiredRich]

It wasn't just Netflix. Redbox and streaming movies in general caused blockbuster to end.

[@thewebstylist]

Fascinating, I never knew the facts in the rise fall of both beloved companies

[@wildbillwilmoth98]

Imagine if they buy the naming rights to blockbuster and decide to rebrand to blockbuster.

[@kauzpayne2]

Dish Network Corporation owns the licensing rights to the Blockbuster brand and its key assets, including the company's video library. Dish Network acquired Blockbuster in 2011 after the company filed for bankruptcy. Dish Network continues to support Blockbuster's franchise operations, relationships, and agreements.

[@DawleyDude]

Personally, I dont think it was just Netflix, something just existing doesn't mean something else can't. What killed Blockbuster was all those people who stopped going once they found a way of watching a movie without leaving the house.. All those people who now post about missing places like Blockbuster were the same ones who stopped going. I used to use my local store alot for games and movies, I saw how it got emptier as the weeks went by, then big game or movie releases stopped getting big lines out the doors which was when they announced they were shutting down, all of a sudden everyone who'd stopped going blamed Netflix

[@sportbikejesus]

This is a case of kids falling for a worse product and ruining the better one. I absolutely understand the positives of streaming. But I also understand the positives of having literally every movie that’s ever gone to DVD being a short drive away. You may not remember this but new movies are released on Tuesday and every Tuesday, BB had EVERY movie that was released in that format. They also kept at least one copy of all the ones that came out decades ago. Streaming is better than disc but Netflix only gets a small percentage of the ones studios release new and you can forget about 90% of the old movies from the 80s and 90s.

[@iSnags]

The fact that blockbuster did it to themselves is crazy . Netflix tried to save them but they was like nah we not worried about the little guy lol fast forward a few years and then boom

[@jesseurizar7146]

They got so much money they should just build a few stores throughout the country to shut people up about missing blockbuster

[@Chrisratata]

Something tells me a new storefront wouldn't last any longer than 3-5 years

[@jiminverness]

9:45 That reference to the "Spielberg film school project" sounds near exactly like George Lucas' THX1138.

[@Mufes-hv5cz]

Does anyone remember cinemark and 16000 videos in Orlando florida...man i miss those days..no social media made life better ..the only social media i prefer is youtube....

[@Wraith26]

All I heard was, I was on the beach, all I had with me was shorts, tshirt thong sandals…?😂

[@repboy1]

I did like going to blockbuster though and getting movies for the weekend .

[@xrayded5037]

Being confortable kills company’s period.. seen it over and over

[@VideoHeadMan]

The Steven Spielberg movie he’s talking about. What is that movie? I think he’s confusing it with George Luca’s THX1138, because that film ends with the robot guards almost catching THX all the while the control center talks about how the pursuit is going over budget.

[@Annandale1987]

Blockbuster sealed their own fate when they refused to move with the times, I miss Blockbuster dearly though

[@maxx7743]

Blockbuster refusing to change and innovate reminds me of Kmart when Walmart came around and put them out of business same premises.

[@Sonsaiyon]

I dodnt know blocbuster and netflix were around at the same time... I could have swore it was downloads that killed blockbuster

[@tinostarks]

wow... I had no idea this happened.

[@dluverm]

No More Late Fees!!

[@toplinkdefence5727]

We used to go hunting for a film and be careful to get the right one and buy treats. Now it's not the same.

[@steve8339]

Blockbuster killed blockbuster they didn't move with the times till it was to late

[@WilRod123]

I remember the downfall of Blockbuster. Similar happened to Kodak back in the day. Sears, Nokia, BlackBerry, the list goes on.