Page 16 - January 23 2023

As Amazon.com and Redbox emerged as
competitors, Blockbuster struggled, losing
$200 million in late fees and investing
another $200 million to launch Blockbuster
Online.

In 2000 Blockbuster was presented with a
golden opportunity to dominate the industry
when Netflix offered to sell to Blockbuster for
$50 million. Blockbuster had raised $465
million in its IPO the prior year yet declined
the opportunity.
By 2005 Blockbuster lost 75% of its market
By Rebecca Murtagh value. It was hit hard by the recession of

2007-2009 and filed for bankruptcy in 2010
Disruption is inevitable. Recession, inflation, with only 1,700 stores. By 2014 all company-
mandates, natural disasters, illness, loss, owned stores were closed. One store remains
technology, competitors, and every other kind in Bend, Oregon.
of disruption can result in failure. It doesn’t
have to be this way. Disruption can create Netflix would grow exponentially, offering
enormous opportunity. online streaming in 2010. In 2012 Netflix was
the largest streaming service in the world
Less than 10% of public companies survived with 222 million subscribers worldwide, and
past recessions. What did they do that over $20 billion in revenue.
90% did not? They turned disruption into
opportunity. TALE 2. Ford Motor Company incorporated in
1903. The company scale from selling would
INNOVATION is OXYGEN to
sell 10,000 Model T cars in 1908 to selling
YOUR SUCCESS 1,905,955 vehicles and 174 billion in revenue

One brilliant idea can create massive in 2021.
success. Brilliant ideas, in time, become
obsolete if they do not evolve, as The hand-crank windowless 22 horsepower
demonstrated in these two tales: Model T ford has evolved to vehicles like the
Mustang with padded seats, tinted glass,
TALE 1. If you are over 30 you likely remember navigation, Bluetooth, heated seats, up to
Blockbuster video. The first store opened in 480 horsepower engines, and an electric
1985, offering VHS video rentals for home model for 2023.
viewing. By the early 1990’s Blockbuster had
become the largest video rental company in Ford didn’t just adapt to the latest
the world with 1,000 brick and mortar video technology. Ford became a disruptor by
rental stores serving over 50 million introducing the first moving assembly line,
members. Technology changed. DVD replaced which gave them a distinct advantage and
VHS. Blue ray replaced DVD. By the year 2000, forever changed the automobile industry.
late fees accounted for $800 million, or 16%, DISRUPT OR BE DISRUPTED
of Blockbuster’s revenues. You may not be able to predict what form it
will take. Disruption will come to your
The internet created competition when in business, career and life.
1997 Netflix created an online store to
facilitate mail order rentals delivered to You have one simple choice to make: DISRUPT
customer’s homes. Customers could watch or BE DISRUPTED.
videos and return them on their timeline. To learn how to:
Blockbuster was forced to alter its business Turn disruption into opportunity
model to compete. Accelerate growth
Build a future-proof framework for innovation
Create sustainable success
Rebecca Murtagh, Human AI Institute
Page 16 I iNETrepreneur Magazine https://www.RebeccaMurtagh.com
Email: Rebecca@RebeccaMurtagh.com