If there was ever a better example of how not to run a company based on old business models and physical inventory — wait a minute… — Blockbuster would take the cake. Anyone with half a brain cell can figure out that if you’re business model revolves around physical goods such as movie rentals, at some point the digital transition is going to hurt your business. Apparently Blockbuster had visions of VHS and DVD’s lasting forever in their...
Besides the epic failure of music labels’ inability to find a working business model in the digital age, there is one other contestant in particular vying for “worst performance in the digital arena ever” award: Blockbuster. When I was a kid (not too long ago), I remember going to Blockbuster sometimes as often as a couple of times every week. It was great. The competition with other locals Hollywood Video (now deceased) and Family Video (greatly...
Of all the industries that have been hit hard by the digital revolution, the music/video industries are some of the hardest hit. With both formats relying heavily on physical media for income, now that many are pushing away from such formats, the companies involved are feeling the pinch. On the video front, Blockbuster is taking a beating. Just look at their recent 4th quarter results in which they lost over $400 million — $400 million!. Even more telling however...
As if we didn’t see this one coming… Blockbuster is filing for bankruptcy in Portugal. Why does that matter to us here? It doesn’t really. But it goes to show how a company stuck on old business models and resistant to embracing new technologies kills itself. If Blockbuster had moved to some form of Netflix solution or even to a more digital business model, perhaps their pockets (and stores) would be a tad more full, hmm? Once riding high on a 100...
Driving all the way down the street to your local Blockbuster to pick up some old, decrepit physical media is a pain. Not to mention, cassette tapes are all but antique and DVD’s are losing their luster in this digital age. Blockbuster is one of those businesses who should be scared. Without any physical media to rent, how do they stay in business? SD cards, that’s how. Blockbuster is currently undergoing a pilot program in which users can bring in their...
