

Netflix vs Blockbuster, 2004-2010 - stephenjudkins
http://go-digital.net/blog/2011/02/netflix-vs-blockbuster-perfect-example-of-an-industry-replaced-by-a-more-efficient-version-of-itself/

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gamble
Uh, what?

Blockbuster had revenue of approximately $4 billion in 2010.[1] Where did the
data come from for this chart? No operating business has zero revenue.
Blockbuster has plenty of revenue, they just can't pull in enough gross profit
to service their debt.

[1]
[http://investor.blockbuster.com/phoenix.zhtml?c=99383&p=...](http://investor.blockbuster.com/phoenix.zhtml?c=99383&p=irol-
newsArticle&id=1426686)

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kenjackson
It's in their annual report:

[http://phx.corporate-
ir.net/External.File?item=UGFyZW50SUQ9M...](http://phx.corporate-
ir.net/External.File?item=UGFyZW50SUQ9MzQ4MTIyfENoaWxkSUQ9MzM2Nzc2fFR5cGU9MQ==&t=1)

See page 24(29) where they list annual revenue for past five years:

    
    
      2004 - 6.0B
      2003 - 5.9B
      2002 - 5.6B
      2001 - 5.2B
      2000 - 5.0B
    

EDIT: Your statement about no real business doing $0 in revenue kept on
nagging me. So I went and looked up their 2010 10k. They actually did $3.2B in
2010. So this chart is NOT accurate. They did do $4.0B in 2009, but only
dropped to $3.2B in 2010.

Just because you file for bankruptcy doesn't mean you have zero revenue.

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kenjackson
That is a GREAT chart. That is a classic example of the Innovator's Dilemma.
What if you told BB in 2004 that if they moved into pushing mail order and
streaming their 2010 revenue would be $2.2B -- what would they have done
differently? Quite possibly nothing.

This is why these disruptions are tough to deal with. Trying to actually
disrupt yourself could result in the loss of a LOT of revenue, but it saves
the business. But who could foresee that?

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matthewlyle
This chart was created by somebody with a fundamental misunderstanding of what
bankruptcy is.

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whyleyc
So where did the other $3.8 billion in revenue go ?

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cryptoz
I would guess that consumers kept it. Watching 10 movies using Blockbuster
could cost the consumer around $50 (in Canada, anyway, where Blockbuster is
still thriving because Netflix took more than a decade to get here). Watching
10 movies on Netflix is included in your fixed monthly cost, which is
considerably less than $50/month.

Edit: Or maybe what gamble said.

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nhangen
I pay $20/month to watch Blockbuster online (only supported by my DVD player I
think), get unlimited DVD's in the mail, and unlimited trades in store.

I really like it, and it's nice to go get what I want when I'm in the mood,
rather than hope the movie that arrives is something I feel like watching.

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psi_rockin
This implies that Netflix one-for-one replaced Blockbuster. How can you ignore
Redbox, iTunes, and the rise of On-Demand offerings from cable and satellite
providers that all took place within the same time frame?

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seanalltogether
What about Redbox? Surely they put more of a dent into blockbusters business
then netflix did? I always assumed netflix was competing against walmart/best
buy dvd sales, and not blockbuster rentals.

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Kirchart123
Usa vs china aconomy would be similar by 2015

