That will never work.
These four words have ended careers and businesses because someone couldn’t get on board with a vision for the future. Four words that often describe missed opportunity. The signs were there. New and exciting things were happening. The economy, job market, politics, sports, entertainment, etc., were shifting to something new.
One prominent example is the Netflix/Blockbuster meeting held at Blockbuster’s headquarters in Dallas, Texas. The story goes that Netflix, an American subscription streaming service and production company, was struggling financially. Before the company started the streaming service, Netflix rented DVDs via mail. They were profitable until they weren’t. An acquisition by Blockbuster seemed to be the solution.
Blockbuster’s Missed Opportunity
Netflix founders Reed Hastings and Marc Randolph and Chief Financial Officer Barry McCarthy met with John Antioco, CEO of Blockbuster, in 2000. Hastings praised Blockbuster’s strengths and discussed how the two companies would be a great fit. He proposed that Netflix handle the online rentals and Blockbuster handle the stores. According to Randolph, Antioco was hesitant because many online companies failed during that period. Ed Stead, General Counsel of Blockbuster, asked the Netflix leadership how much money they wanted for this partnership. Hastings said 50 million dollars. However, Blockbuster didn’t accept the deal or present a counter offer. Therefore, Netflix had to make some major decisions about its future.
The Market Impact 10 Years Later
Fast forward to 2010 – Blockbuster files for bankruptcy. Four years later, the last corporate-owned store closed. Netflix was worth $9.27 billion and $20.63 billion in 2010 and 2014, respectively. As of February 2022, Netflix has a market capitalization of $173.28 billion.
This version of the story comes from Marc Randolph’s book entitled, That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea. Of course, John Antioco has a slightly different version of the story. No matter what version of the story you believe, it’s an example of a missed opportunity. Business owners, executives, and managers make tough decisions every day. No one knows exactly how things will turn out in the future, but there are a few things to watch for to avoid missing out.
Following these simple suggestions may be beneficial when dealing with a missed opportunity.