I paid an extra $5 on my list visit to Blockbuster to upgrade my membership. It seemed like a reasonable deal. Then I read the paper the next morning that Blockbuster was on the verge of bankruptcy. Darn. Hopefully I’ll get a couple free movies on my new membership before they close the doors.
Blockbuster is a good example of a company so afraid to cannibalize itself, it let others do it. Netflix and RedBox are eating Blockbuster’s lunch with vastly different business models. And so goes the cycle of business. That’s a great reason why we should encourage competition in just about anything that supplies us with a product or service. The business model of 20 years ago may not be the best one. Let consumers decide. The businesses with the best value propositions for today’s consumer wins.
On a similar note, I walked into a Starbucks the other day and thought it looked dated.