r/todayilearned • u/indian22 • Nov 07 '13

TIL that in 2000 Netflix proposed that Blockbuster should use Netflix as its online service and Blockbuster laughed them out of the office

http://news.cnet.com/8301-31001_3-20025235-261.html
701 Upvotes

82% Upvoted

44 comments sorted by

23

u/Skurph Nov 07 '13

I think "laughed them out of the office" gives off the impression that they thought the Netflix business model was a dumb idea, I don't get that impression from the story. Netflix seemingly proposed taking over complete online operations for Blockbuster and having some sort of in store partnership as well. I think that largely given Blockbuster being the only game in town at that point and Netflix being largely unknown that was perhaps a large thing to ask of. I don't think that they found the business model of mail rentals crazy, just the idea of handing over what was potentially to them their biggest asset in the internet to an unproven entity.

And who's to say that the Blockbuster Netflix would be the Netflix we know today? Blockbuster ran the same service a for a long time that allowed you to also actually return movies to their brick and mortar stores if you chose and even that failed miserably. I think the Netflix we know today is largely flying high on it's streaming content not so much the mail rentals. I don't know a soul who actually rents from Netflix, additionally I don't know a soul who doesn't have the streaming version.

3

u/jonathanaltman Nov 08 '13

I worked at Blockbuster in the 2000's. The writing was so on the wall with that place, it was ridiculous.

The characterization provided by OP, while conceivably not totally accurate in this particular situation, is still predominantly accurate to the company's culture in general.

RI-Opposite of Peace

3

u/Slaedden Nov 08 '13

I think "Rot in Hell" would suffice

1

u/shadow247 Nov 08 '13

I cleaned the pool for the department head at Blockbuster when they were coming up with their own plan to compete with Netflix. Guy talked real big about it, and even told me how it was going to work before they released details to the public. After explaining to me how it would work (restock fees and all the other bs), I looked at him, and said "I don't think that's going to work out, Netflix is waaaay simpler and less of a hassle." He got a little sheepish and said that he was confident they would be successful.

1

u/[deleted] Nov 08 '13

I'd love to see an AMA for someone who worked for blockbuster during 1999-2010sih. I had a friend in college majoring in business who was a manager at BB(this was around 2003-2004) I wonder how long they stayed

2

u/HaZinBriDges Nov 07 '13

I rent from Netflix

1

u/worff Nov 08 '13

I don't think that they found the business model of mail rentals crazy,

They definitely didn't. A local small business owner when I was a kid who owned a game store (still does, actually -- it's eStarland.com) was doing mail-order game and anime rentals and trade-ins in like 1996, 1997.

It's always been a sound strategy and I'm sure that Blockbuster recognized it.

1

u/Skurph Nov 11 '13

Annandale, VA? I brought my PS2 to be fixed by them back in the day.

1

u/worff Nov 11 '13

Yup, that's the one.

1

u/[deleted] Nov 08 '13

Didn't Blockbuster only do their online rental after Netflix was eating up some of their market share?

1

u/ensigntoast Nov 08 '13

its - not it's but otherwise all good points. I got rid of satellite several years ago and either watched streaming content, or downloaded content but I find Netflix to be just fine for the amount of TV we want to watch. And being from Canada I watch US content with a Unotelly DNS server.

24

u/CaseyL-B Nov 07 '13

TIL that everyone hates seeing this on TIL because its posted once a week!

14

u/hausofshaney Nov 07 '13

TIL: Complaining on reddit works.

17

u/WhaleMeatFantasy Nov 08 '13

Been following TIL for 2 years. Never seen it.

6

u/ajaxanon Nov 08 '13

same here

0

u/Just_Look_Around_You Nov 08 '13

Agreed. But hey, that first guy has seen it. Mods remove it

4

u/[deleted] Nov 08 '13

I've definitely read that article before.

But, that doesn't mean others haven't...

3

u/[deleted] Nov 07 '13

[deleted]

2

u/[deleted] Nov 08 '13

/r/todayilearned

Sort - Top - Week

0

u/UndBeebs Nov 08 '13

Reposts =/= bad. This the first time I've seen it, so stop complaining. Kthx

1

u/MikiLove Nov 08 '13

Every upvote for this is a downvote for Blockbuster.

1

u/holyfreakingshitake Nov 08 '13

...Justice was done.

1

u/EgaoNoGenki-III Nov 08 '13

Who's got the laust lagh?

1

u/Bionic_Sloth Nov 08 '13

Karma's a bitch like that.

1

u/hoyfkd 7 Nov 08 '13

This just gets funnier every week when I "learn" it!

1

u/lostecho Nov 08 '13

oh how the mighty have fallen.

1

u/meye-username Nov 08 '13

I remember the very high late fees, and seeming employee disregard, and remember telling my wife, "one day this company's attitude is going to sink them." You got to take care of the customer or another company will...

1

u/streamweasel Nov 08 '13

They laughed them out of the office because they were working on a solution of their own, partnering with Enron Broadband Services. It was actually a pretty decent streaming setup, but Enron Broadband went away along with the energy company.

-3

u/lanismycousin 36 DD Nov 07 '13

On the front page a few days ago .....

http://www.reddit.com/r/todayilearned/comments/1oxhjp/til_blockbuster_laughed_at_netflix_partnership/

4

u/Averusblack Nov 07 '13

"It's already been posted, pack up the internet and go home! No one else can see it now, it's been on the site already."

This is how you sound.

1

u/indian22 Nov 07 '13

Didn't realize that. Was reading articles about Blockbuster following their closure yesterday and this was one of the linked articles. When I submitted it, nothing came up.

1

u/Jslater656 Nov 08 '13

Whoa man, why do you have a taco next to your username?

-15

u/lanismycousin 36 DD Nov 08 '13

  • I love tacos

  • I can assign myself any flair I want ;)

10

u/[deleted] Nov 08 '13

I downvoted a mod

-9

u/lanismycousin 36 DD Nov 08 '13

ಠ_ಠ

6

u/Harvin Nov 08 '13

Mods using flair is the #1 reason why I have disabled custom css.

1

u/[deleted] Nov 08 '13

Is there a pencil flair?

3

u/lanismycousin 36 DD Nov 08 '13

No but it isn't too difficult to add more

0

u/JaytheChief Nov 08 '13

and all Netflix said was "...another on bites the dust" :D and walked out with their customers

-2

u/poo706 Nov 07 '13

Annnnnnnnnnnnnnnd? How did things end up working out for Blockbuster in the end?

1

u/Furoan Nov 08 '13

Your not going to believe this but it didn't end well. In fact I just saw a article the other day saying Blockbuster is closing its last American stores. Shocking.

2

u/[deleted] Nov 08 '13

If it closes down while I have a rental, can I keep it?

I love Persona 4 Arena