An interesting article on C|Net points out Blockbuster's biggest blunder in the last decade: not collaborating with Netflix when it had its chance. In fact, the former leader in video rentals actually scoffed at the idea many years ago. Now, with the company in and out of bankruptcy, Blockbuster might want a do-over.
In 2000, Blockbuster CEO John Antioco was approached by Netflix CEO and co-founder Reed Hastings about putting together a partnership, according to Barry McCarthy's recollection of events detailed in an interview ten years ago with the Unofficial Stanford blog. C|Net found the interview while researching a story about the Netflix CFO's exit from the company.
From the article:
"I remembered getting on a plane, I think sometime in 2000, with Reed [Hastings] and [Netflix co-founder] Marc Randolph and flying down to Dallas, Texas and meeting with John Antioco," McCarthy said in the interview. "Reed had the chutzpah to propose to them that we run their brand online and that they run [our] brand in the stores and they just about laughed us out of their office. At least initially, they thought we were a very small niche business. Gradually over time, as we grew our market, his thinking evolved but initially they ignored us and that was much to our advantage."
Barry McCarthy is leaving his Netflix CFO post with $40 million.
Source: Blue's News