In a career spanning more than 30 years, billionaire investor Carl Icahn has seen his share of investments go south, but none have stung him harder than his stake in Blockbuster, he says. Icahn discusses the rise of Netflix and Redbox, as well as why Blockbuster was the worst investment of his career, in an article in the April Harvard Business Review.
From the article:
“Blockbuster turned out to be the worst investment I ever made. It failed because of too much debt and changes in the industry.
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It had too many stores, Netflix created a better business model, and then Redbox kiosks and the whole digital phenomenon eliminated the need for consumers to go to a separate DVD store.
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“
In the piece, Icahn also wonders aloud what might have happened if Blockbuster hadn’t pulled the plug so swiftly on its unlimited online and in-store “Total Access” rental program.
Could a firmer commitment to its Total Access program have saved Blockbuster, or at least delayed the inevitable? Could anything have?
(via Forbes)
An earlier start to the program might have helped, but they were pretty much doomed by corporate hubris.
DEBT destroys ALL!!! Carl Icahn, you greedy bastard, you alone destroyed
blockbuster. you drove up their debt while jacking up the prices for individuals
while BB had a VIRTUAL monopoly. then others came along with lower price
business models and the REST IS HISTORY!!!
Stay the F away from them! They are doing the best they can with their online
business and i’m taking full advantage of them since REDBOX cant get blurays
into the boxes!!!! im happy! and i hope you are f’EN SAD.
CANT WAIT TO HEAR YOUVE DIED!!!
YOU BLOOD SUCKING LEACH!!!
tiochner,
Don’t hold back. Tell us how you REALLY feel.
PS: Redbox DOES have Bluray copies. Do try to keep up.
BLKH2O
He’s being way to kind. Incompetence killed BB. They had deals in place and should have been able to change faster than a start up. They have a huge list of mistakes that have been listed elsewhere.
You are a filthy dirty, greedy person that doesn’t deserve anything good in life. You have touched so many families and individuals with your destructive, greedy ways……remember TWA?????? We have not forgotten and never will!!!!
In my personal opinion if blockbuster had kept its rental subscription plans and allowed for customers to rent through the mail and return in the store for whatever they wanted like they were doing, they would’ve had a better foot hold then netflix. You would’ve had real people to talk to and the option to pick out whatever you want whenever you want. Don’t want to wait 3 days to get a new dvd? Just go into block buster. You don’t care and just want them sent to you fine. It was a win win situation. They could’ve charged a little bit more than netflix for the convenience which would’ve allowed them to drop their rental fees without penalty to compete with redbox. I don’t know what happened or how it happened…. behind the scenes that is….. but some one really screwed up. Even lengthening store hours would’ve been worth it. Its a shame. But as they go out of business and try to get rid of stock, they better not think they’re going to get full price on anything.
RIP Blockbuster stores….you had it all and you took your customers for granted. This is the result.
Closing 186 stores? Corporate needs to add a ‘0’ to the end of that number.
i am an employee w/an independent videostore. netflix & redbox r definitely hurting the independent stores. imo- all these corporations are greedy & when the independents go out of business watch these greedy jerks raise their prices. oh yeah they are putting me out of a job. thanx