here's how Netflix beat Blockbuster and made BILLIONS

Name: here's how Netflix beat Blockbuster and made BILLIONS
Uploaded: 2024-07-31T17:00:10+00:00
Duration: 45 s
Channel: Hiten Shah
Description: A narrated YouTube explainer (by Hiten Shah) recounting how Netflix displaced Blockbuster. It describes Reed Hastings selling his previous company for…

31 Jul 2024 · 1 min

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0:45

A narrated YouTube explainer (by Hiten Shah) recounting how Netflix displaced Blockbuster. It describes Reed Hastings selling his previous company for $750 million, investing about $2.5 million with his co-founder Mark to start Netflix around 1998, choosing DVDs (smaller and mail-friendly) over VHS, and by 2007 becoming a publicly listed company with over 7 million subscribers while Blockbuster remained focused on late fees as Netflix moved into streaming.

Questions this video answers

1998

$750 million

$2.5 million

By 2007, Netflix was publicly listed with over 7 million subscribers.

Chapters

You know Netflix, that thing that killed Blockbuster? Let's go back in time so I can explain. It's 1998. Blockbuster is ruling the world and everyone's fighting over the last copy of the Titanic at their local store. And so this guy.
Reed Hastings, he.
Just hit the jackpot. He sold his company for a cool $750 million. But instead of retiring on a yacht, he invests.
Two and a half million.
Dollars in a.
New company with his buddy Mark.
Their idea?
What if we could get movies without leaving our couch?
But they had a problem. VHS tapes were.
Big and expensive to mail.
The solution? A new technology called DVDs. They were smaller, lighter and almost perfect for mailing. Fast forward to 2007. Netflix is a.
Publicly listed company with.
Over 7.
Million subscribers.
Blockbuster finally starts.
To panic, but it's way too late. Netflix is.
Already launching streaming and signing deals with all the big studios. Meanwhile, Blockbuster is still focused on late fees.