December 14, 2004

Schumpeterian Gales of 100 Knots

That's my shipping forecast for Blockbuster. They announce today a less aggressive policy on late fees, but Jonathan Last says it is too little, too late.

I've long been impressed by how arrogant and stupid Blockbuster has behaved as an institution. They had a near monopoly on the video rental business and a chance to extend that monopoly as the market changed, first with the DVD, then with the internet, and finally with the supremacy of sales over rentals. And at every step, instead of innovating and adapting, Blockbuster sought to fight the future and maintain the status quo.

A word in there that's wrong? Own the market and watch it dissipate because you spend all your time defending the turf you've established, not looking at new trends and opportunities.

I haven't set foot in a Blockbuster for years. I am far from a movie buff, but they have nothing to offer me.

Posted by jk at December 14, 2004 02:42 PM
Comments

Absolutely. I am still eagerly awaiting the fruits of the alignment of Netflix and Tivo. I read an interview with the CEO of Netflix last year and he made it very clear that the company was called "Netflix" and not "Movies by Mail" for a very good reason...

Posted by: Silence Dogood at December 15, 2004 11:49 AM

Don't know if you followed the link to Galley Slaves, but Last ends with a rumor of an Amazon takeover of Netflix. That could be interesting as well, if in a less Schumpeterian Way.

Posted by: jk at December 15, 2004 12:35 PM
| What do you think? [2]