How Netflix Destroyed Blockbuster

HOW NETFLIX NETFLIX NETFLIX DESTROYED BLOCKBUSTER THE END OF THE BRICK AND MORTAR VIDEO-RENTAL ERA AS WE DIVE DEEPER INTO A DIGITAL AGE, NETFLIX HAS BECOME A HOUSEHOLD NAME FOR ONLINE VIDEO AND TELEVISION STREAMING THAT HAS ALMOST ELIMINATED THE WAY WE USED TO RENT DVD'S AND EVEN WATCH TV. DRIVING TO STORES LIKE BLOCKBUSTER TO PICK OUT A MOVIE BY HAND HAS BECOME ALTOGETHER PREHISTORIC. HERE'S THE LOW DOWN ON JUST HOW ENORMOUS THIS INTERNET GIANT CALLED NETFLIX IS BECOMING AND WHO IT'S CRUSHING IN ITS PATH. IN 2011, NETFLIX SURPASSED 20 MILLION SUBSCRIBERS IN THE UNITED STATES AND CANADA, MAKING IT THE WORLD'S LEADING INTERNET SUBSCRIPTION SERVICE FOR ENJOYING MOVIES AND TV SHOWS. ENTIRE 20 MILLION CHLRIE omnuEs SUBSCRIBERS POPULATION U.S.A CANADA AUSTRALIAY NETFLIX IS NOW THE NO. 2 VIDEO SUBSCRIPTION SERVICE BEHIND COMCAST. # 1 N hulu udu Zune BEST BUY (intel) SONY BLOCKBUSTER amazon AMONG LARGE AN EXPANDING BAS OF DEVICES STREAMING FROM NETFLIX ARE: Microsoft Xbox 360 Sony Playstation 3 Nintendo Wii ROKU Blu Ray Players Internet Television Roku DVR TiVo iPhone TiVo DVR iPad NETFLIX TAKES OVER PRIME TIME NETFLIX STREAMING REPRESENTS MORE THAN 20% OF DOWNSTREAM INTERNET TRAFFIC DURING PEAK TIMES 8 -10 PM. (AND IT'S BEING USED BY JUST UNDER 2% OF NETFLIX SUBSCRIBERS) NNNNNN NNNN O10101010 NNNNNNN NNN O1010101010 NNNNNNN NNN O10101010 NNNNNNN NNNNN 10101010 010101010 01010 0101010 10101010 010101 01010 N 0101 010 010 010101010 N 01010101 10 010101 N 010101 N 0101O NNNNN 10101 NNNNN 010 10101O 010101 0101010101010 010101010101010101010 01010101010101 10101010101010101010 NNN O1010101010101 10101010101010101010 סוסוסוסוסוס1ס1סוס01וסוסוסו0וסוסוסוס .ו | ! PEAK TIME DOWNSTREAM INTERNET TRAFFIC 20% 9.89% 2.58% NETFLIX You Tube iTunes NETFLIX VS. PREMIUM CABLE IN 2008, STARZ SOLD THEIR ENTIRE LIBRARY OF 2,500 PIECES OF CONTENT FOR A BARGAIN DEAL OF $30 MILLION. SIGNING THAT DEAL TODAY WOULD COST NETFLIX UPWARDS OF $250 MILLION. $30 MILLION $250 MILLION HBO HAS STEADFASTLY REFUSED TO SELL ITS STREAMING RIGHTS TO NETFLIX, AND SHOWTIME ISN'T MAKING AS MUCH MATERIAL AVAILABLE AS IT ONCE DID. HBO SLOCKESE BACK IN 2000, BLOCKBUSTER DECLINED SEVERAL OFFERS TO PURCHASE NETFLIX FOR A MERE $50 MILLION. IN 2010, BLOCKBUSTER DECLARED BANKRUPTCY. NETFLIX VS. BLOCKBUSTER (2004-2010) BLOCKBUSTER REVENUE NETFLIX REVENUE $6 BILLION $4 BILLION $2.2 BILLION $2 BILLION $0 BANKRUPT 2004 2005 2006 2007 2008 2009 2010 BLOCKBUSTER LISTED ASSETS OF $1.02 BILLION AGAINST DEBT OF $1.46 BILLION. BLOCKBUSTER OWES ($MILLIONS): $21.6M $20M $13.3M FOX SONY AS OF 2011, BLOCKBUSTER HAS CLOSED ALMOST 1,000 OF ITS 3,000 U.S. STORES. ABOUT ONE THIRD OF ALL LOCATIONS. BLOCKBUSTER BLOCKBUSTER BLOC STER INFORMATION PROVIDED BY: www.OnlineMBAPrograms.com SOURCES: HTTP://www.CRUNCHBASE.COM/COMPANY/NETFLIX HTTP://NEWS.CNET.COM/8301-13506 3-20020434-17.HTML#IXZZ1CMSV7GOF HTTP://GIGAOM.COM/VIDEO/NETFUX-BANDWIDTH-HOGS/ HTTP://TECH.FORTUNE.CNN.COM/2010/11/04/NETFLIX-WILL-RUIN-THE-INTERNET/ HTTP://www.LEGALZOOM.COM/INTELLECTUAL-PROPERTY-RIGHTS/PATENTS/WHY-IS-NETFUX-SUING-BLOCKBUSTER HTTP://www.TECHNOBUFFALO.COM/BLOG/HOME-ENTERTAINMENT/HOW-MUCH-DOES-NETFUX-SPEND-ON-STREAMING- CONTENT/ %3D