Yahoo Finance Blockbuster refused to buy Netflix and went broke a decade later
While Blockbuster might be something of a relic now, back in the day it was the only way to watch your favourite flicks.
And, Netflix founders Reed Hastings and Marc Randolph knew that, and thought to approach them back in 2000 with one favour: US$50 million (AU$71 million).
Randolph told this year’s Asia Pacific Cities Summit conference that “the meeting went downhill pretty quickly after that”.
Related article: “Greatest mistake ever”: Bill Gates on his biggest career regret
Related article: Here's how the world's billionaires make their money
Related article: Why Netflix Losing “The Office” Might Actually Matter
But it’s the meeting that led the streaming service founder to want to “kick their ass”, the Sydney Morning Herald reported.
“And we did.”
"It took about 10 years, but eventually we did drive Blockbuster into bankruptcy."
While the story is gloat-worthy, the Netflix founder didn’t share this memory simply to brag about taking down the then-US$6 billion company.
Randolph chose to use the story to warn against bigger companies being complacent about adapting technology.
“If you are the market leader, if you’re the one in front, if you’re resting on your laurels… the people who are going to come after you may look nothing like you.”
“They may not even be in business today… and if you can’t figure out how to disrupt yourself, you are leaving it wide open for someone to disrupt it for you.”
He left the audience with three keys to creating change: tolerance for risk, ideas and confidence.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.
