Netflix vs. Blockbuster
Which Business Are You - or Want to Be?
When we think about business lessons, it’s easy to frame them as winners vs. losers. Netflix thrived, Blockbuster fell. But what if we looked at both companies as positive role models? What if we asked not who failed, but who do you want to be?
The Battle Begins
In the late 1990s and early 2000s, Blockbuster dominated the movie rental world. Their stores were everywhere and their brand was synonymous with weekend movie nights. Then came Netflix, a small, online DVD rental startup that challenged the very foundation of Blockbuster’s business:
Netflix offered convenience. No late fees, no trips to the store and the promise of home delivery.
Blockbuster relied on foot traffic, physical stores and a business model built around fines and strict policies.
At first, Blockbuster underestimated Netflix. They saw them as a niche competitor, not a potential disruptor. But Netflix wasn’t just another company - they were changing how people wanted to consume entertainment. This was more than a market shift; it was a battle of mindsets.
Blockbuster: Execution vs. Adaptation
Blockbuster excelled at execution. Their logistics, store network and brand recognition were unmatched. They had opportunities to acquire Netflix early but hesitated. They were comfortable in their dominance, trusting that operational efficiency alone could sustain them.
Blockbuster’s story shows the power of doing things right, but also the danger of resisting change. Even the best operations can be disrupted if the world moves faster than your willingness to adapt.
Netflix: Innovation and Courage
Netflix approached the battle differently. They knew the landscape was shifting and they were willing to take risks to capture the future:
Launching DVD-by-mail, which removed friction for customers.
Investing early in streaming, predicting the decline of physical media.
Continuously experimenting with algorithms, content and user experience.
Netflix teaches us the power of strategic foresight, courage and adaptability - and the importance of empowering your team to embrace change rather than fear it.
Lessons from the Battle
Both companies modeled traits worth learning:
Blockbuster: Mastery of process, operational excellence and scale.
Netflix: Bold innovation, risk-taking and customer-focused adaptation.
The battle wasn’t just about technology; it was about mindset. Blockbuster focused on the past and what worked, while Netflix focused on the future and what could work.
Coaching Perspective: Who Are You?
Here’s where it gets personal for business leaders and teams:
Are you like Blockbuster, excelling at operational mastery but cautious about change? There’s power in doing what you do best exceptionally well.
Are you like Netflix, willing to reinvent, experiment and adapt quickly? That courage can position you for breakthrough growth.
Or, better yet: you can choose what kind of business - and leader - you want to be. Maybe the smartest path is a balance: operational excellence and adaptive innovation.
Reflection Questions for Leaders
Where are you excelling in your business today? Are you focusing enough on execution?
Where could you embrace more experimentation or innovation?
How are you supporting your team through change, so they can perform at their best - like Netflix supported its shift into streaming?
The Takeaway
The Netflix vs. Blockbuster story isn’t just about who failed. It’s about what mindset and practices you want to adopt in your own business. Success doesn’t require a binary choice - you can learn from both, choosing the strategies and values that fit your vision.
So, who are you - or who do you want to be?: Which Business Are You - or Want to Be?