Blockbuster couldn't find a way to overcome Netflix head to head. But market research showed that the ability to combine rental via mail and in-store was a game changer.[…]
Total Access took 1M subs in two months and took over 100% share. Netflix modeled for bankruptcy for Blockbuster[…]
Hastings told Antioco that he used the company for destruction and offered to buy Blockbuster Online subs. He later followed up with $ 200 / sub offer. Antioco knocked down, realizing he had Netflix on the ropes.[…]
At Blockbusters board meeting. Antioco suggested they would reject the offer. The board agreed. Then he turned to his mate. He had met the goals set by the Comp Committee, so expected approval. Icahn exploded.[…]
TL, DR: Antioco quits, and against all logic instead of hiring COO, Icahn hires an ex-11-11 retailer who plans to do everything Blockbuster has already tried and failed. After he made his plan, the entire exec team sold most or all of his stock in the next open window! […] Not only did Blockbuster execs sell all their stock, they bought the Netflix stock!
Carl Icahn also tried to tell Apple what to do before selling all his stock. The excerpts are from the Netflixed book.
Alternatively a great podcast version of the story of Netflix here.
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