Netflix vs Blockbuster – Perfect example of an industry replaced by a more efficient version of itself
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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Dr. Augustine Fou is an advisor on digital strategy and social media marketing, with over 16 years of in-the-trenches, hands-on experience. He provides client executives with objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI with digital insights.
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Good post!