In September, Blockbuster filed for Chapter 11 bankruptcy protection. Since then, it's been revealed that it may not be able to meet all of the financial obligations under the filing. Big surprise.
For years, the doomed rental house flailed from one poorly planned initiative to another -- all in the hopes of catching the runaway train that is Netflix. It briefly ditched late fees, only to reintroduce them as "restocking fees" when it couldn't keep up with the loss of revenue. It touted the 28-day new release window it held with Warner Bros, Fox, and Universal -- but saw its rental kiosks lose the advantage in December. And with its finger on the pulse of modern technology, it pushed SD cards into those kiosks rather than putting all of its resources into Blockbuster On-Demand.
Seemingly every idea out of the brick-and-mortar retailer was firmly entrenched in the 1990s. Zero forward thinking across the board. And CEO Jim Keyes was arguably the worst offender.
Keyes has said, in regards to Netflix's "confusing" interface on its many, many partners' devices:
What I want to do is punch a button on my remote, and have access to 10,000 movies. You can get it all here. I'm going to be brash for a moment, but I donâ€™t have to figure out how to get it from my Nintendo machine to the screen. I know I can do it, but I don't want to -- it makes my head hurt to think about it!
Yes, Jim. But 20 million Netflix subscribers seem to have no trouble wrapping their head around it.
With its constant growth and heavy push to streaming video, Netflix has been crowned the world's leading online video subscription service. But how did it do it? This infographic -- courtesy of Online MBA Programs -- sheds some light on how Netflix beat Blockbuster.