Netflix vs Blockbuster: The Battle of Giants

Reed Hastings is referring to the company Blockbuster, a $6 billion giant that dominated the home entertainment business with almost nine thousand rental stores around the world.

At the time of the meeting, Netflix was a tiny two-year-old start-up with one hundred employees and a mere three hundred thousand subscribers.

Reed Hastings and Marc Randolph suggested that Blockbuster purchase Netflix, and then they would develop and run Blockbuster.com as their online video rental arm.

<p>John Antioco listened carefully, nodded frequently, and then asked how much Blockbuster would need to pay for Netflix.</p> Signup and view all the answers

<p>At the time of the meeting, Netflix faced challenges such as being a small start-up with losses totaling $57 million for the year, and struggling to get Antioco to respond to their calls.</p> Signup and view all the answers

<p>Blockbuster was a $6 billion giant with almost nine thousand rental stores worldwide, while Netflix was a tiny two-year-old start-up with a hundred employees and three hundred thousand subscribers.</p> Signup and view all the answers

<p>$57 million</p> Signup and view all the answers

<p>Blockbuster had almost nine thousand rental stores around the world.</p> Signup and view all the answers

<p>Suggesting that Blockbuster purchase Netflix and then have them develop and run Blockbuster.com as their online video rental arm.</p> Signup and view all the answers

<p>&quot;John Antioco, the CEO of Blockbuster&quot;</p> Signup and view all the answers