Netflix to Blockbuster: told you so.
In 2000, Netflix co-founder Reed Hastings flew down to Dallas to meet with then Blockbuster CEO John Antioco. The two were supposed to discuss a partnership, CNET reports, but Antioco didn’t let the discussion go on very long.
Here’s how Netflix CFO Barry McCarthy remembers it: “Reed had the chutzpah to propose to them that we run their brand online and that they run [our] brand in the stores and they just about laughed us out of their office. At least initially, they thought we were a very small niche business.” McCarthy went on to say that “they ignored us and that was much to our advantage.”
Indeed, Netflix went on to achieve more than $1 billion in annual revenue by 2007. Blockbuster, meanwhile, was forced to file for bankruptcy this past September.
Photo by jan-willem.