Netflix vs. Blockbuster

Netfliz os. Blockbuster TO WAR OR NOT TO WAR Did Nitlin really put Blockbuster out of business? GROSS PROFITS Blockbuster was hurting long before Netflix became a player. But it looks better to lose a war, than to lose from sheer incompetence. 6OOM 300M -300M BLOCKBUSTER VIDEO -600M -900M NETFLIX -1200M -1500M 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 =Blockbuster I=Netflix 1997: Netflix founder returns Apollo 13 to Blockbuster 6 weeks late. Dismayed by the late fees, he starts his own company. Noteworthy 1997-2005: An unprofitable trend for Blockbuster 2000: Blockbuster declines to purchase Netflix for $50 million. ADMIT 2007: Blockbuster enlists 7-11 execs to focus on the “package" their customers leave the store with (candy, sodas, etc.). BLOCKBUSTER: A Decade in Decline You can't make this stuff up! 1985 1994 1997 1998 First Blockbuster opens in Dallas. Viacom acquires Reed Hastings returns Apollo 13 to Blockbuster 6 weeks late, and is dismayed by the $40 late fee. Reed Hastings founds Netflix. Blockbuster for CINEMA * **** ADMIT ONE 075714309 $8.4 billion. 2001 | 2002 2000 Blockbuster posts $1.6 billion loss. Enron files for Blockbuster declines to purchase Netflix for $50 million. Creates 20 year deal to deliver on-demand movies with Enron Broadband bankruptcy in accounting scandal. Blockbuster kisses Viacom holds Blockbuster IPO, valued at %$4.8 billion. streaming deal goodbye. Services, a subsidiary of Enron. 2003 | 2004 2005 Netflix posts first profit of $6.5 million. Blockbuster enters online DVD Blockbuster rental market. Reed Hastings tells analysts “in the last six months, Blockbuster has thrown everything launches “no late fees" campaign and is sued for misrepresenting policy to but the kitchen sink at us." The next day Hastings receives package from Blockbuster: a kitchen sink. customers. 2009 2006 2007 Blockbuster rolls out kiosk system designed to compete with Redbox. Blockbuster Blockbuster loses 500,000 subscribers surpasses 2 million subscribers for online services. just in the third quarter. redbox Netflix reaches 6.3 million. MARCH JULY SEPTEMBER 2010 2010 2010 .I... ..... $1.1 billion revenue losses, with a company value of just $24 million. Blockbuster files for bankruptcy. Blockbuster Blockbuster advertises 28 day quicker access launches Droid X app. Blockbuster de-listed from the NYSE, shares at all time lows. to new movies than Netflix and reintroduces late fees. Blockbuster's Peak: 19,000 stores 1 60,000 employees 1$8 billion value Notliv's Pako 1 Watched more than any cable network Accounts for nearly 1/3rd of internet traffic 1$20 billion value Netflix didn't shut down Blockbuster, but they did steal the market Blockbuster needed to move into. It's a NEW ERA, Folks! 2012-2017 Growth in Global Spending Change per year NEW Physical Home Video -4.9% Electronic home video delivery (streaming) >III 0:58 /623 HD E 40 (so in five years, In 2013, +19.1% a loss of about 25% 50% for physical home video) of 18-29 year-olds used OTT (free online streaming site) Is there really o choia? a choice? BLOCKBUSTER VIDEO VS. NETFLIX Head into the store for your choice of a few hundred mainstream titles. Thousands of titles to choose from! I Recommendations, ratings and all genres. 1 Streaming-to Roku DVR, Blue-ray players, smart tv, Xbox 360, Xbox One, Playstation 3 and 4, Playstation Vita, Wii, Nintendo 2 and 3D, Tivo, Apple TV, Computers, iPhones, Androids, Chromecasts, Tablets Plus, Netflix programming– R.I.P. BLOCKBUSTER After Blockbuster dug its own grave, House of Cards Hemlock Grove Arrested Development (season 4) Lilyhammer Orange is the New Black Aziz Ansari: Buried Alive Netflix's 40 million customers are forging a new era of entertainment. Brought to you by topaccountingdegrees.org Sources * http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=NFLX> Businessweek http://www.fastcompany.com/1690654/blockbuster-bankruptcy-decade-decline> Fast Company http://www.nbcnews.com/id/39332696/#.USR2K_RDV9C> NBC News http://www.heraldonline.com/2013/11/07/5384377/the-rise-and-fall-of-the-blockbuster.html> The Herald Online http://www.amit-deshpande.com/2010/12/netflix-vs-blockbuster.html> Amit Deshpande http://ir.netflix.com/sec.cfm> Netflix Investor Relations http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=bloka> Morningstar http://www.policymic.com/articles/77927/netflix-is-purging-tons-of-movies-on-january-1> Policymic, Netflix instant purge http://www.buzzfeed.com/mdeicke1/12-surprising-facts-about-netflix> Surprising Netflix Facts http://liveglobalstream.com/video/> Global Entertainment Trends http://www.engadget.com/2013/10/21/netflix-q3-40-million-total/> Engadget, Netflix Numbers 2317 0757143