Question
Here is the question : WHICH COMPANY IRONICALLY TURNED DOWN THE CHANCE TO BUY NETFLIX?
Option
Here is the option for the question :
- DirecTV
- Apple
- Blockbuster
- Universal Studios
The Answer:
And, the answer for the the question is :
Explanation:
It was in September of 2000 when a group of executives from Blockbuster got together with the co-founders of Netflix, Reed Hastings and Marc Randolph. According to what is written in Randolph’s book, when the fledgling company proposed an acquisition price of $51 million to the CEO of Blockbuster, he declined it. After ten years, Blockbuster filed for bankruptcy, which led to the closure of practically all of their locations across the country. In the year 2020, the estimated value of Netflix was up to $196 billion.
In the early 2000s, Netflix was a startup with a vision to revolutionize the way people rented and watched movies. The company’s co-founder, Reed Hastings, had a unique idea to offer a DVD rental service by mail, which was later complemented with online streaming. Despite facing numerous challenges along the way, Netflix managed to grow and become one of the most successful companies of the modern era. However, what many people don’t know is that Netflix had a chance to be acquired by Blockbuster, its biggest competitor at the time.
Blockbuster was a dominant force in the video rental industry, with thousands of stores across the United States and other countries. The company had a loyal customer base, and its brand was synonymous with movie rentals. However, Blockbuster failed to recognize the potential of online streaming, which would eventually become the new standard in the industry. In 2000, Netflix offered to sell itself to Blockbuster for $50 million, which was a fraction of what the company is worth today.
Blockbuster’s management team turned down the offer, believing that the future of movie rentals was in brick-and-mortar stores. At the time, Blockbuster was also struggling with its own financial problems, which may have influenced the decision. However, in hindsight, it’s clear that this was a huge mistake that cost Blockbuster dearly. By refusing to buy Netflix, Blockbuster missed out on an opportunity to disrupt the industry and potentially save its own business.
Instead, Blockbuster chose to invest in its own online platform, but it was too little, too late. Netflix had already established itself as the leader in online streaming, and Blockbuster could not catch up. The company eventually filed for bankruptcy in 2010, while Netflix continued to grow and expand its reach. Today, Netflix has over 200 million subscribers worldwide and is valued at over $200 billion, making it one of the most successful companies in the world.
The story of Blockbuster and Netflix serves as a cautionary tale for businesses that fail to recognize the potential of emerging technologies. Blockbuster was a giant in the industry, but its inability to adapt to the changing times led to its downfall. On the other hand, Netflix was a startup that had a vision for the future and was willing to take risks to achieve it.
Blockbuster’s decision to turn down the chance to buy Netflix was a missed opportunity that would have changed the course of the video rental industry. Instead, Netflix went on to become one of the most successful companies of all time, while Blockbuster filed for bankruptcy. The lesson to be learned here is that businesses must be willing to adapt and embrace new technologies to stay relevant and competitive in the ever-changing landscape of the modern world.