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Why did Netflix kill Blockbuster?

Could this be the reason why Netflix has done so well and Blockbuster has done so poorly?

2 Comments

  1. No question. I abandoned Blockbuster after and incident where they said I didn’t return a movie which I did and was actually on the shelf in the store. Worse, after I pointed this out they didn’t check the movie back into inventory so this moved slowly through the Blockbuster collection machinery. Everyone’s got a “Blockbuster sucks” story, I believe (there was a class action lawsuit).

    Netflix is a benevolent, non-corporeal entity in the sky that does what they say they will time after time.

  2. I use Blockbuster here in the UK because we don’t have Netflix, and Amazon.co.uk limits the number of discs you can rent per month, which shows they totally miss the point of this business model for customers.

    Anyway, Blockbuster has been fine for me so far.

    But they probably are doomed. A while back I read that they were having a boardroom battle, one of the Directors was leading a revolt to get management to stop wasting resources with the mail order model. It’s a classic disruptive business model, and BB is a classic incumbent.

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