“There were several factors that contributed to the company’s downfall, including not understanding what business they were really in — entertainment, not retail — and not being flexible enough to adapt.”
It may seem obvious in retrospect, but the rise of Netflix and fall of Blockbuster was anything but obvious back in the day.
Drift breaks down what happened and shares three lessons marketers can learn from the rise of Netflix including to never forget what you’re selling, be willing to adapt, and remember the customer-driven approach will always win.
Here’s a “fun” stat from the article: Blockbuster had 9,000 locations in its prime and there are now only 10 remaining. Meanwhile, Netflix has about 90 million paying subscribers.
For another interesting Netflix story, check out the amazing origins of its Chief Content Officer.