Blockbuster Is A Brilliant Example Of Adaptation. Here’s Why
Blockbuster is long gone now. But what can we learn from it’s downfall?
Blockbuster is well known to most people nowadays and if you say it to the average 90s kid, they’ll imagine going into the store, and picking a game or a VHS to rent it. But, after all of these years of it being dead, there’s a lesson businesses can take from it and apply to their own work. So let’s take a look at it.
What is Blockbuster?
Blockbuster was a movie and videogames rental company mainly based in America, with it’s first store being opened in 1985. It would go on to become a titan in the video industry. If you wanted to get a movie or a game, you would go to your local Blockbuster, or at least it was your top consideration.
Their business model was simple: buy games and movies in bulk and put them in their stores. The customers would then rent them out for a certain price and would be charged a hefty late fee if not returned on time. These late fees is what made them most of their money and was one of the more inconvenient sides of the deal for the consumer. But overall, it was a great system and lasted a while.
How did they fall?
Well, quite simply, they failed to adapt. Netflix came along and started their own version of blockbuster. But the main factor is that they made it so much easier for the customer to get their movies. In the early days of Netflix, they would give to you in the mail. Later, they move to the online space where it took off.
But Blockbuster stayed stubborn. They never took a deal with Netflix and barely had anything online, arguably the most pivotal part of the downfall for them.
They then tried to redeem themselves later but to little to no avail.
The main lesson we can take away from this downfall is that we have to adapt to the customer and the trends, and to not be afraid to take risks. Blockbuster as a company should not have tried to stay their ground and instead make an online store and make their own subscription service.
Who’s knows what might’ve happened if they adapted. Would they have still been video titans to this day?