Netflix vs Blockbuster – Perfect example of an industry replaced by a more efficient version of itself

netflix blockbuster revenue graph

revenues of netflix versus blockbuster 2010

The chart of revenues below says it all. The beginning revenue of Blockbuster was $6 billion, while the ending revenue of Netflix is $2.2 billion.  When the inefficiencies of having retail locations, moving physical inventory, and maintaining overhead/staff are cut out of the ecosystem, far less revenue is needed to support the whole business.

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By: Dr. Augustine Fou Tuesday, February 22nd, 2011 digital

1 Comment to Netflix vs Blockbuster – Perfect example of an industry replaced by a more efficient version of itself

  • carmenmel2 says:

    Good post!

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    Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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