Business Wars Netflix vs Blockbuster Revisited - Origins | 2
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May 1, 2019 The podcast delves into the critical moment in 2007 when Blockbuster considered a proposal from Netflix, revealing internal tensions and resistance. It highlights Blockbuster's attempts to thwart Netflix while competing fiercely in the online rental market. As Netflix strategized to disrupt traditional media giants, it cleverly shifted viewer preferences toward streaming, surprising industry executives. The battle showcases the unpredictable nature of corporate strategies, illustrating how Netflix fought to claim its rightful place in entertainment.
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Blockbuster's Surprise Attack
- In 2004, Netflix held an earnings call, boasting about its success and future plans.
- During the call, Blockbuster, unbeknownst to Netflix, publicly launched a near-identical online DVD rental service, causing Netflix's stock to plummet.
Blockbuster's Espionage
- Blockbuster copied Netflix's website and sent spies to Netflix distribution centers to gather intelligence.
- Despite lacking tech expertise, Blockbuster's team, fueled by the belief they could succeed, built a competing platform in 6 months with a $25M budget.
Antioco vs. Icahn
- Carl Icahn challenged John Antioco's bonus, leading to a public dispute and Antioco's eventual departure from Blockbuster.
- Antioco donated his full bonus to the Boys and Girls Clubs of America.