What Really Happened to Blockbuster? The $50 Million Mistake That Changed Everything
Blockbuster built a Netflix rival—then killed it under investor pressure. The $50M near-buy and boardroom fights that doomed the brand.
“What Really Happened to Blockbuster? The $50 Million Mistake That Changed Everything” The Mystery Hook:
Blockbuster had MULTIPLE chances to buy Netflix for $50 million in 2000 They laughed Netflix out of the boardroom 10 years later, Blockbuster was dead
The Intrigue:
Blockbuster CEO John Antioco actually TRIED to compete with Netflix (Blockbuster Online, no late fees) The board fired him for “losing money” on the Netflix competitor New CEO Jim Keyes said in 2008: “Neither RedBox nor Netflix are even on the radar screen in terms of competition” 2 years later: bankruptcy
Mystery Elements:
The villain: Carl Icahn and activist investors who blocked innovation The what-if: Antioco’s plan was WORKING before he was fired The dramatic irony: Keyes came from 7-Eleven and treated video rental like convenience store inventory
Reveal: Blockbuster didn’t die because they missed Netflix—they died because investors wouldn’t let them compete.