
Once Upon A Time In America … Blockbuster Files For Bankruptcy - vkalladath
http://techcrunch.com/2010/09/23/blockbuster-goes-bust/
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wccrawford
"after failing to adequately and swiftly adapt its movie-rental model from
physical storefronts to mail-order and online technology "

No, I'd said their failing was that their stores sucked. I hated going in
there. The movies were generally in alphabetical order, but they were still
hard to find. That is, IF they had the movie in stock.

You couldn't walk in and be sure you were going to rent the movie you
wanted... Unless it was brand new and they had a guarantee for it.

And video games? It was the worst video game rental store I've ever seen. And
I'm talking about multiple stores in multiple cities. It was always the same
way, and it was way worse than the movies section.

I quit using Blockbuster before online rental services existed. It was a lot
less stressful to either go without or buy the game and just earn the money. I
browsed a few Blockbuster stores in the last couple years, but nothing there
convinced me the situation was any better, and I didn't rent anything.

I remember thinking, "They should hire any random teenage gamer and have them
be in charge of picking games."

So no, I don't think Netflix killed Blockbuster. They killed themselves by not
taking care of their customers' needs.

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PatrickTulskie
I don't have a Netflix subscription and I don't go to Blockbuster. I used to
go there all the time for VHS tapes. When they switched to DVDs, I'd say most
of the time if the movie wasn't brand new, it would be unwatchable. I'd have
to get up off the couch and go exchange it for another that might work.

I don't watch many movies and when I do, usually it's a borred DVD or I'll
catch it on HBO or my cable provider's on-demand service. Why do I need
Blockbuster?

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rsbrown
In my opinion, this is another in a long line of companies over the years that
have underestimated the importance of the role of technology in their
business. Furthermore, even companies that are technology-based will still
struggle if they don't see themselves as a technology company.

For example -- as PG has written -- Yahoo saw itself as a "media company"
rather than a technology company. Contrast this with Google.

From first-hand experience, I've seen how eBay is managed as a retail brand,
rather than a technology company (and relied for years on acquisitions over
home-grown tech). Contrast this with Amazon.

Once Netflix established itself in the marketplace and began executing their
technology strategy, Blockbuster was doomed. I'm biased (because I'm a
software guy), but I strongly believe that you are hobbled right out of the
gate if you're not fully invested in growing your company's software tech.

~~~
ttunguz
Completely agree. This trend is happening in a bunch of different places.

Advertising agencies, historically relationship driven, are now building
demand side platforms to acquire media using technology.

Brokerages went through this transition during the eTrade boom.

Video games is currently being disrupted with companies like OnLive, Gaikai
and OTOY. GameStop is trying to prevent their total loss of share by offering
digital content purchasing in store.

Books - Kindle

Music - iTunes

et al

And so on.

