The CEO of Blockbuster ended negotiations and opted not to buy Netflix, claiming it was “a very small niche business.” At the time, Netflix was just a DVD mailing service, but they had a big vision and powerful end goal. Online video streaming.
Today, Netflix has completely transformed the video entertainment industry. 140 million people around the world (and their free loading friends!) rely on Netflix to watch their favourite movies and tv shows from the comfort of their homes.
Netflix played a big role in the extinction of Blockbuster. With a market cap of $151 billion, that initial $50 million offer sounds like quite the bargain! The big companies of today must innovate or risk losing to smaller, more nimble competitors.