Digital transformation, Netflix's success to blockbuster failure

John Antioco, former executive director of Blockbuster Video, rejected the proposal of Reed Hastings, founder of Netflix , which consisted of implementing the digital transformation of his business model, in the rental of non -face -to -face line videos, but for this, it was necessary for Blockbuster to support this idea with his name and stores. However, Antioco took it as a mockery, and rejected the offer.

This happened in September 2000, when in a meeting between both companies, where Netflix suggested to join forces , to benefit both from the combination of their positions in the market, making the digital transformation as a business model where the whole is greater than the sum of its parts. Blockbuster reused said proposal claiming that online businesses were unsustainable and would never earn money.

Blockbuster in bankruptcy

The Blockbuster firm declared bankruptcy in 2010 , and the last corporate store closed in 2014, leaving 25,000 people without employment.

What would have happened if Blockbuster and Netflix had unified forces ? We will never know for sure but, probably, Blockbuster would not have broken , its subscribers would have obtained benefits from the union of both companies having the opportunity to lead a new and strengthened business thanks to the digital transformation .

This is a clear example of how any company , whatever its size, but with managers reluctant to evolve, innovate and optimize their services to the compass of technological advances, make the serious mistake of stagnation believing themselves invincible or unbeatable and that because of their arrogance, it is considered to sink it shortly after .