After all, Netflix was losing money back in the early aughts. The short version of the Blockbuster Netflix story is this: Blockbuster had the opportunity to buy Netflix and didn’t. Blockbuster’s profits had to be able to sustain the worldwide stores and staffing levels. "@type": "Article", Now, some might say that at the time Antioco was being a smart businessman. . Richard has over 15 years of experience in Corporate Finance, Strategic Planning and Business Development for franchise retail concepts. Perhaps no other example quite defines the concept of industry disruption as the Blockbuster Netflix story. "dateModified": "2017-12-17", I look forward to his continued contributions and strong relationship with Rave.”, “Rave Cinemas is a pioneer in the theater exhibition industry, and I have enjoyed contributing to the leadership of such an innovative company,” said Mr. Moss. Copyright © 2020 Penske Business Media, LLC. Yvette started with Souper Salad in 1999 as a cashier and worked her way up the ladder, being promoted to district manager over the entire Houston market in 2010. Former SVP, Supply and Logistics for Pepsico's food businesses; Former Chairman, SP Bancorp. © 2013 - 2020 BRIX Holdings, LLC. "name": "3 Facts About the Blockbuster Netflix Story You Probably Didn’t Know" "@type": "ImageObject", "author": { John is the Managing Partner of JAMCO Interests LLC, the majority shareholder of BRIX Holdings, LLC. Former CEO, Blockbuster, Taco Bell; Former Chairman, Main Street Restaurant Group H.G. 1,161.Though she dropped from 1067 last year, her worth has grown by $1 million. Blockbuster’s profits had to be able to sustain the worldwide stores and staffing levels. After all, Netflix was losing money back in the early aughts. When consumers heard Netflix’s original ad campaign, “The end of late fees,” Blockbuster heard a death knell. Now, some might say that at the time Antioco was being a smart businessman. At the time, Wedbush Morgan Securities wrote in a research note that Blockbuster’s offer bordered “on being reckless,” and that Circuit City “appears to be in the middle of a death spiral.” Blockbuster’s Profits Were Tied to Something Their Customers Hated Any entrepreneurial summer camp will start off with a lesson about the need to tie your profits to what your customers value. He is also currently serving on the Board of Directors of TGIF Holdings, LLC, the parent company of TGI Friday’s restaurants. "@type": "Organization", "publisher": { And perhaps the straw that broke Blockbuster’s back was when, in 2008, then CEO Jim Keyes made a $1 billion bid to buy Circuit City, but the electronics retailer closed its doors in 2009 after going bankrupt. Netflix CEO and co-founder Reed Hastings had tried a few times to court Blockbuster chief John Antioco and get him to buy Netflix (which at the time was only a DVD-by-mail rental company) for $50 million dollars (the company is now worth $19.7 billion). Mr. Moss will remain as the second-largest investor in the company and a member of the board of directors. Next, and quite late to the party, Blockbuster tried to launch its own DVD-by-mail business and rental kiosks but found it hard at that point to compete against Netflix and Redbox. John F. Antioco, the chief executive of Blockbuster who has been locked in a dispute with company directors over the size of his bonus, has agreed to leave his job at the end of the year. He lacked the vision to see the bigger picture and where the future of the home video industry was headed. BRIX Holdings name, design and related marks are trademarks of BRIX Holdings, LLC. At the time, Wedbush Morgan Securities wrote in a research note that Blockbuster’s offer bordered “on being reckless,” and that Circuit City “appears to be in the middle of a death spiral.”. Here are three interesting facts about the Blockbuster Netflix story that illustrates how critical it is for business owners to recognize disruption and take steps to ensure they thrive in a climate of constant change. Disruptor Daily's Podcast dedicated to interviewing the world's top thought leaders on practical use cases for blockchain technology. We want to hear from you! • With a net worth of $1.8 billion, Catherine Lozick, 72, of Naples, ranks at No. Any entrepreneurial summer camp will start off with a lesson about the need to tie your profits to what your customers value. Send us a tip using our annonymous form. Perhaps it was a PR stunt or perhaps it was legitimate, but the final film rental from Blockbuster was “This is the End.”", Currently he is Chairman of J&B Restaurant Partners, the largest franchisee of Friendly’s restaurants. But the lesson here is that Antioco was looking at rather obvious information right in front of him. He was a capable executive, but I wasn’t impressed with his work ethic—his heart didn’t seem in it. Only nine months later, Blockbuster cancelled the pact due to the Enron scandal. Think about it, a huge portion of the revenue Blockbuster needed to stay in business was a revenue stream Netflix didn’t even have. Any entrepreneurial summer camp will start off with a lesson about the need to tie your profits to what your customers. He’s not a bad guy. I liked John Antioco personally. Ouch. Craig joined Brix in 2013 as Vice President of Operations for Red Mango and was promoted to President, leading all BRIX brands, in November 2016. RESTAURANT & RETAIL John Antioco. COPYRIGHT © 2018 DISRUPTORDAILY.COM. "@type": "Person", "name": "http://www.disruptordaily.com/3-facts-about-blockbuster-netflix-story-you-didnt-know/" It will potentially go down as one of the biggest forehead-slaps and missed opportunities in history. Rumor has it Hastings was practically laughed out of the boardroom each time he made an offer to Antioco, who was known to be a tough negotiator. Blockbuster ended up filing for bankruptcy in 2010 when it lost $1.1 billion dollars. Mr. Antioco is Chairman of BRIX Holdings LLC, Chairman for Red Mango, Inc. (a subsidiary of BRIX Holdings LLC), Chairman at TGI Friday's, Inc., Chief Executive Officer at P.F. Much of their profit relied on something their customers despised – late fees. BRIX Holdings name, design and related marks are trademarks of BRIX Holdings, LLC. At the time, it was valued at around $24 million, while Netflix’s worth had already risen to roughly $13 billion. Think about it, a huge portion of the revenue Blockbuster needed to stay in business was a revenue stream Netflix didn’t even have. It will potentially go down as one of the biggest forehead-slaps and missed opportunities in history. In a statement, TowerBrook Capital Partners said, “Charley has provided outstanding leadership over his tenure as Rave Cinemas has integrated the 33 movie theaters it acquired from National Amusements and has continued to roll out digital, 3-D and IMAX technologies and alternative content across its 61 owned or managed theaters. Craig has over 18 years in senior leadership roles at major retail companies including Kay Bee Toys, Joanne Fabric and Crafts and CVS Caremark. At the time, it was valued at around $24 million, while Netflix’s worth had already risen to roughly $13 billion. }, Kevin Bacon Joins Action Thriller ‘One Way’ Opposite Colson Baker & Travis Fimmel – AFM, New Don Winslow/Jeff Daniels Anti-Trump Video Tackles Michigan’s Point Of View, Deadline Note To Readers: A Mistake Made On The Vice President And Coronavirus, Embattled President Trump Confronts Faux Barack Obama In Resurfaced ‘The Apprentice’-Style Video, Exhibition Awaiting Another ‘Wonder Woman 1984’ Release-Date Change; Shortened Theatrical Window Not In Cards, Q3 Revenue Plunges From $1.3B To $119M; Net Loss 16 Times Wider; CEO Vows “We Will Fight!”, Tom Hardy, Pete Davidson, Stephan James, Tye Sheridan, Bill Skarsgard, Ashton Sanders Lead Vietnam War Pic, NBC Pulls Pandemic-Themed Comedy ‘Connecting’ From Schedule; Remaining Episodes To Stream Online. "name": "Disruptor Daily" Next, and quite late to the party, Blockbuster tried to launch its own DVD-by-mail business and rental kiosks but found it hard at that point to compete against Netflix and Redbox. John Pooley. Only nine months later, Blockbuster cancelled the pact due to the Enron scandal. "description": "Perhaps no other example best defines industry disruption as the Blockbuster Netflix story - one of the biggest missed opportunities in history. Ms. Brown served as an Associate Corporate Counsel for Blockbuster Inc. until September 2008 when she transitioned to serve as Blockbuster’s Vice President, Legal & Digital Content. Founder & Former CEO, CTI Foods Paul Zmigrosky. “John’s extensive experience in the strategic management of retail and entertainment businesses will be invaluable to Rave as the company continues to grow.”, Mr. Antioco commented, “Rave is well positioned to continue leading innovation in the industry and I am looking forward to working closely with Rolando and his team.”. After BRIX acquired the brand in 2014, Yvette was promoted to Director of Operations for Souper Salad, and her responsibilities soon expanded to include RedBrick Pizza as well. CEO, Jogue Inc. Kirk Smith. Blockbuster has since gone under and Netflix, well… you know how they turned out. The leadership change will take place at the meeting of the board of directors on September 19, 2011. John F. Antioco is a businessperson who has been at the head of 8 different companies. Perhaps it was a PR stunt or perhaps it was legitimate, but the final film rental from Blockbuster was “This is the End.”, { ALL RIGHTS RESERVED. With Netflix, customers could keep the DVDs as long as they wanted so there were no late fees - ever. Dallas, TX (August 18, 2011) — Rave Cinemas, LLC (“Rave”) today announced that John F. Antioco, a Director of Rave and the former Chairman and Chief Executive Officer of Blockbuster Inc., will succeed Charles B. Moss, Jr. as Rave’s Chairman. Exclusive market research and insights from leading thought leaders on the front lines of their industry. It will potentially go down as one of the biggest forehead-slaps and missed opportunities in history. "image": { Launch dates for broadcast, cable and streaming programs, Up-to-date lists for broadcast, cable and streaming series, Pandemic-proof vs. pandemic-contingent broadcast lineups, Signup for Breaking News Alerts & Newsletters, Get our latest storiesin the feed of your favorite networks. Prior to joining us, he was Vice President of Easter Seals NY from 2011 to 2013.

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