Fees vs Clicks

Who can forget Blockbuster.

The Late Fees…

The Abuse….

I was introduced to Netflix by my friend Pete who swore never to go back to Blockbuster again.

He had his movies in his envelopes and he didn’t care that it took 24 hours to collect the movie…. He was ripped one too many times and he hated Blockbuster…

With a passion….

Even know I can feel the anger knowing how we were treated and so I understood completely.

Get treated badly and you will go out of your way not to do business with those who insult and abuse you.

Netflix started as a DVD-by-mail rental service in the early 2000s, offering customers a convenient way to rent movies without the hassle of visiting physical Blockbuster stores and dealing with late fees.

However, digital media emerged and Netflix realised it was a danger to their existing business model. Streaming services and online piracy posed significant challenges.

DVD rentals declined and the company was facing a much more insidious competitor than Blockbuster who were too far up their own….

Time to adapt.

Netflix introduced a subscription-based streaming service. They made agreements to start with a vast library and plowed investments into content which they offered for a flat monthly subscription.

It proved to be a game-changer.

As internet connectivity improved streaming exploded.

Netflix’ bet for on-demand streaming paid off as they attracted a lot of subscribers.

Instead of being hostage to licensing, the company invested heavily in original programming, producing high-quality shows like “House of Cards” and “Stranger Things.”

Eventually, they phased out their DVD rental business gradually.

They did not rest on their laurels.

They continued investing heavily in technology to support the streaming platform and in providing a seamless and enjoyable user experience.

The company expanded globally, tapping into new markets and reaching millions of viewers worldwide.

And it all stemmed from a recurring revenue model that provided them the predictable funding to invest and scale the business.

Nowadays, Netflix is a major player in the entertainment industry, changing the way people consume media. They have become synonymous with streaming, and their original productions have garnered critical acclaim and a massive fan following.

Netflix’s ability to adapt to changing market dynamics and embrace recurring revenue was instrumental in their transformation from a struggling DVD rental service to a global entertainment powerhouse.

Being able to adapt and go for recurring revenue is can be key in today’s environment.

Begin by providing value to your customers, build their loyalty, and creating the right subscription model that resonates with them and allows you to scale and grow your business.

Blockbuster filed for Bankruptcy in 2010. It would have been better if they had put the effort into giving their customers what they wanted instead of fining them.

Who are the Blockbusters in your industry?

To your Success and Sanity,

George

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