🚀 Medial just raised $500k in Pre-Series A. Tap to read the announcement. 🎉
Login

Back to feeds

Havish Gupta

Stealth • 4m

How Blockbuster's One Offer Almost Killed Netflix! So Blockbuster was founded in 1985 as a movie DVD rental company. They had huge stores, stocks of all movies, and movie reviews from their employees. It was good place to shop at but the pain point was that they used to charge incredibly high late fees (made over $800 million in revenue in 2004 due to it) Blockbuster was later acquired by Viacom in 1994 for $8.4 billion. Meanwhile, in 1997, Reed Hastings and Marc Randolph observed that every .com company was becoming huge and thus started an online DVD renting startup called Netflix! Their USP was that they shifted to CDs, which were easy to store and didn't charge late fees. This worked well, and Netflix began to grow. Blockbuster was initially not scared of them and also rejected an offer to acquire Netflix for $50 million. That was their biggest mistake, as that same company is now worth $300 billion! By 2006, Netflix had reached 2 million users, but that was going to drop because, as in the same year, Blockbuster launched an offer that allowed subscribers to return DVDs and exchange them for another DVD for free. This offer was awesome, and Netflix started to struggle. The issue here was that Blockbuster still lost $2 every time someone exchanged a DVD, and it was already about a billion dollars in debt. Still, they continued it, thinking that at scale, this would become profitable. But the But the Upcoming 2008 Financial Crises made it hard for them to survive and as a result, Blockbuster had to eventually filed for chapter 11 bankruptcy in 2010 and Finnally closed in 2013. Also That Blockbuster's offer was good that Hasting, Netflix's founder said that, "it hadn’t been for their debt, they could have killed us."

4 replies6 likes
Replies (4)

More like this

Recommendations from Medial

Image Description
Image Description

Inactive

Stealth • 4m

How Netflix started ? The $2 Billion Mistake: Blockbuster's Netflix Blunder How does a single decision reshape an entire industry? In 2000, Netflix offered to sell to Blockbuster for $50 million. Blockbuster laughed it off. Fast forward: 2002:

See More
4 replies19 likes
7
Image Description
Image Description

Jaswanth Jegan

Stealth • 6m

"Netflix lost almost a Million Subscribers" Bankruptcy to Billions #7 Netflix turnaround from significant crisis In 2011 Netflix announced a change in its pricing and subscription plans. Initially customers could subscribe both DVD rentals and str

See More
9 replies11 likes
1
Image Description
Image Description

Vikas Acharya

 • 

Medial • 19d

NETFLIX : FROM DVDS TO STREAMING EMPIRE !! Founded in 1997 by Reed Hastings and Marc Randolph, Netflix began as a DVD rental service. When Hastings envisioned streaming content online, the company transitioned in 2007, betting on the future of on

See More
5 replies11 likes
Image Description
Image Description

Sanskar

Stealth • 7m

Yahoo - was founded in 1994 by Jerry Yang and David Filo two graduate students but he's the thing Yahoo was never meant to be a business these two graduates just listed their favourite website in a directory and published it in the internet. Because

See More
3 replies11 likes
3
Anonymous
Image Description
Image Description

Anonymous

Stealth • 6m

Can we replace 2 hours of netflix watching with watching such videos that will actually help people to do something! What do you think about netflix and similar platforms? Do they waste time or are they actually helpful?

6 replies10 likes
2
Image Description
Image Description

Havish Gupta

Stealth • 5m

This is how Hostinger, a small Lithuanian startup, established themselves in the competitive web hosting space. It was founded as Hosting Media in 2004 by Aurimas Rapalis. The idea behind it was to allow ordinary people to host their websites and sh

See More
15 replies20 likes
2
Image Description

The unknown entrepreneur

Stealth • 8m

Startup story 5/10 This Indian audio platform is taking over the US market . In FY-24 they will make over a $100 million just from us consumers. Started by three engineers in 2018, Pocket FM is an audio entertainment platform, think of it as Netfl

See More
1 replies14 likes
1
Image Description
Image Description

Havish Gupta

Stealth • 3m

Farmers generally have to sell their produce at a lower price and also have to throw away a considerable portion, while consumers have to pay high prices for the same goods but still don't get good quality. Well, this is the problem Fraazo was tryin

See More
10 replies7 likes

Payal Manghnani

Stealth • 6m

CHOSEN, a startup that specializes in skincare and is located in Chennai, has successfully raised $1.2 million in funding. The funding was obtained through a seed funding round and was provided by a combination of friends, family, and investors w

See More
0 replies6 likes

Rajan Paswan

Stealth • 6m

The Curious Case of Continue Watching! — Netflix In 2007, Netflix noticed a significant trend: many users were immediately clicking "Play" on the next episode of a show they were watching, even late at night. The Key Moment: This behavior wasn't ra

See More
0 replies10 likes
1

Download the medial app to read full posts, comements and news.