Comments on: Blockbuster going kaput? http://www.rajajasti.com/2009/04/07/blockbuster-going-kaput/ Musings on Technology, Media and Business Wed, 08 Feb 2012 20:12:45 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Raja http://www.rajajasti.com/2009/04/07/blockbuster-going-kaput/comment-page-1/#comment-3104 Raja Wed, 08 Apr 2009 16:23:45 +0000 http://www.rajajasti.com/?p=1614#comment-3104 In retrospect that makes sense. But there is a good reason why even the smartest companies get blindsided by disruption. Blocbuster didn't buy them because of what seem like perfectily good reasons at that time. They would have worried about conflicts with their high margin cash cow in store rentals. Companies are always worried about protecting their current revenue streams and this is what makes it diffucult for them to adapt to disruptions. This is happening now in the media businesses. Also, if blockbuster purchased netflix that early, netflix may not be what it is today. In retrospect that makes sense. But there is a good reason why even the smartest companies get blindsided by disruption.

Blocbuster didn’t buy them because of what seem like perfectily good reasons at that time. They would have worried about conflicts with their high margin cash cow in store rentals. Companies are always worried about protecting their current revenue streams and this is what makes it diffucult for them to adapt to disruptions. This is happening now in the media businesses.

Also, if blockbuster purchased netflix that early, netflix may not be what it is today.

]]> By: takis http://www.rajajasti.com/2009/04/07/blockbuster-going-kaput/comment-page-1/#comment-3078 takis Tue, 07 Apr 2009 22:54:53 +0000 http://www.rajajasti.com/?p=1614#comment-3078 Great post about the innovators dilemma, they should have purchased netflix back when they had the chance for 50 million. Great post about the innovators dilemma, they should have purchased netflix back when they had the chance for 50 million.

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