It’s easy to blame Netflix for Blockbuster’s bankruptcy. The truth is Blockbuster had problems — big ones — long before Netflix entered the picture. And who better to tell us than the bean counters?
Topaccountingdegrees.org prepped an infographic that illustrates many of the high/lowlights, including the time Blockbuster missed its chance to purchase Netflix for $50 million back in 2000. After passing (!), Blockbuster signed a 20-year deal to deliver on-demand movies with Enron (!!) Broadband Services, which filed for bankruptcy the following year.
Meanwhile, as Netflix leadership anticipated the next trend in home viewing and pushed its streaming platform, Blockbuster pushed candy at its stores. So while it’s easy for Blockbuster to blame Netflix for its demise, the truth is much more complicated. As the infographic’s authors put it, “it looks better to lose a war than to lose from sheer incompetence.” We’ve got to agree with them there.
Check out their infographic below and see when things started to go wrong for Blockbuster — regardless of Netflix’s fortunes.