Citation
Netflix vs. Blockbuster: Battle Strategies
TL;DR
Blockbuster's store locations ($2B+ real estate) became liabilities in streaming era
Analysis of competitive dynamics between Netflix and Blockbuster, documenting why Blockbuster's regeneration attempts failed despite significant investment. Provides root system incompatibility analysis.
Demonstrates the biological parallel: like trying to regenerate a mangrove after draining the swamp. Blockbuster's capabilities (real estate, inventory management, retail transactions) were liabilities in streaming era, not assets to build on.
Key Findings from Satariano & Ante (2010)
- Blockbuster's store locations ($2B+ real estate) became liabilities in streaming era
- Customer relationships were habit-based not loyalty-based
- Core capabilities irrelevant to digital delivery
- Netflix's convenience advantage accelerated customer exodus