Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Blockbuster CEO 'Confused by Fascination' With Netflix

blog.wired.com

Post reply on HN
Print view View original

11–20 of 69 posts

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#11

Post by jrockway »

OneSeventeen wrote: post #5
jrockway wrote: post #2

"I've been frankly confused by this fascination that everybody has with Netflix," Keyes told Rafat Ali, in an interview with PaidContent.org. Translation: "I am not qualified for my job. I know nothing about my industry, or what my customers want. I get a nice paycheck though." I'm frankly confused as to why a CEO would think that being confused about his competition would bring him more business.

Yeah. Way to fail completely at your job, Keyes. This is a guy who can't imagine anyone using his product in a way different from the way he uses it. Fail.

This is a guy who can't imagine anyone using his product in a way different from the way he uses it.

There is really a different problem here. It's probably true that most people want to see new releases. The problem is that Netflix has new releases and old movies also. So if you go with Blockbuster, you are stuck with only new releases. If you go with Netflix, you get everything. Why bother with Blockbuster?

Also, I guess there is an agile-ish mantra like "design products for yourself first". He is doing this, and is proof that it doesn't work for everyone. :)

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#12

Post by thorax »

sysop073 wrote: post #10
jrockway wrote: post #2

"I've been frankly confused by this fascination that everybody has with Netflix," Keyes told Rafat Ali, in an interview with PaidContent.org. Translation: "I am not qualified for my job. I know nothing about my industry, or what my customers want. I get a nice paycheck though." I'm frankly confused as to why a CEO would think that being confused about his competition would bring him more business.

This was good too: "Why would anyone want to watch anything other than new releases" And this is why Netflix's share price is a good 15 times higher than Blockbuster's right now

Well, I wouldn't worry about share price so much as their overall worth. It's heavily reflected there, though: Netflix ($1.8 billion) has nearly four times the market capitalization of Blockbuster ($472 million).

The fact that the CEO is confused really is obvious in the market as well as in the interview.

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#13

Post by caudicus »

sysop073 wrote: post #10
jrockway wrote: post #2

"I've been frankly confused by this fascination that everybody has with Netflix," Keyes told Rafat Ali, in an interview with PaidContent.org. Translation: "I am not qualified for my job. I know nothing about my industry, or what my customers want. I get a nice paycheck though." I'm frankly confused as to why a CEO would think that being confused about his competition would bring him more business.

This was good too: "Why would anyone want to watch anything other than new releases" And this is why Netflix's share price is a good 15 times higher than Blockbuster's right now

Well, to their credit Netflix's market cap is only 4x that of Blockbuster. ;)

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#14

Post by cmos »

wow. He should be fired. Immediately.

Just saying those comments should be career suicide. His PR person is probably freaking out.

Why would the board of directors just wait around for a clueless leader to drive them into the ground?

They lost the battle. Time for an aggressive plan B to stay in business.

Attempts to sell consumer electronics in blockbuster stores are pathetic and have failed over and over again. First radio shack, then circuit city. Putting up a shelf with electronic gear will not move it. http://findarticles.com/p/articles/mi_hb6695/is_200201/ai_n2...

My plan B for them would be to change store format entirely. Build a nice home theatre that can sit 20 people and have showings of new releases. The catch is they use equipment that is in the $1000-$5000 price range, and it's a great experience that you can 'take home'. Delivery is free. Installation is extra.

Show new movie releases. Always have free popcorn!! It costs virtually nothing. Have a kids night. Let local managers be more creative.

Still rent movies and games, but change the 'browsing' process. Have large screens and use a wii type remote to navigate a virtual store with slick graphics. Show what's popular, ask what type of movie they want. Make a game that promises to find you the perfect movie. Navigate through actors or scenes. Remember what they have seen. (how miserable is it to walk to the other side of the store with a movie and your wife says 'seen it' over and over again)

Make it so people don't say "do we have to go to blockbuster?" when they are in between movies in their netflix queue. It's staggering to think that the idea of putting boxes of discs on shelves and letting people walk around aimlessly picking at random is

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#15

Post by cstejerean »

jrockway wrote: post #11
OneSeventeen wrote: post #5

Earlier quoted context omitted.

Yeah. Way to fail completely at your job, Keyes. This is a guy who can't imagine anyone using his product in a way different from the way he uses it. Fail.

This is a guy who can't imagine anyone using his product in a way different from the way he uses it. There is really a different problem here. It's probably true that most people want to see new releases. The problem is that Netflix has new releases and old movies also. So if you go with Blockbuster, you are stuck with only new releases. If you go with Netflix, you get everything. Why bother with Blockbuster? Also, I…

It works well when other people also like what you're designing for yourself. The solution is not for this guy to start doing something he doesn't understand, but for Blockbuster to get a new CEO.

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#16

Post by cujo »

jrockway wrote: post #2

"I've been frankly confused by this fascination that everybody has with Netflix," Keyes told Rafat Ali, in an interview with PaidContent.org. Translation: "I am not qualified for my job. I know nothing about my industry, or what my customers want. I get a nice paycheck though." I'm frankly confused as to why a CEO would think that being confused about his competition would bring him more business.

I'm a bit confused by it too. What does Netflix have/do that BB doesn't?

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#17

Post by staunch »

cdr wrote: post #7
jrockway wrote: post #2

"I've been frankly confused by this fascination that everybody has with Netflix," Keyes told Rafat Ali, in an interview with PaidContent.org. Translation: "I am not qualified for my job. I know nothing about my industry, or what my customers want. I get a nice paycheck though." I'm frankly confused as to why a CEO would think that being confused about his competition would bring him more business.

He might know what his customers want, but the problem is his customers are becoming Netflix customers. The market has changed, but his target customer hasn't.

I think Netflix simply identified a big gap in the movie rental market that this guy is still unable to see, even when it's eating his business alive.

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#18

Post by huherto »

From a consumer point of view. I hate going to Blockbuster because it takes me a long time to choose a movie. I would like to have the catalog online. Mark the movies that I have already seen. Mark the movies that I may like to see someday. Being able to make an online reservation, and on my way home pick it up at the counter.

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#19

Post by prakash »

cmos wrote: post #14

wow. He should be fired. Immediately. Just saying those comments should be career suicide. His PR person is probably freaking out. Why would the board of directors just wait around for a clueless leader to drive them into the ground? They lost the battle. Time for an aggressive plan B to stay in business. Attempts to sell consumer electronics in blockbuster stores are pathetic and have failed over and over again. Fir…

Why would the board of directors just wait around for a clueless leader to drive them into the ground?

Typically, CEO's hire their board and gives them lots of options to essentially align with the CEO.

Once I wrote this, out of curiosity, I checked who's on the board of Blockbuster. Interestingly, a one Carl Icahn is on the board. (http://www.reuters.com/finance/stocks/companyOfficers?symbol...)

Also, the CEO made $5 odd million last year(http://www.reuters.com/finance/stocks/officerProfile?symbol=...).

Re: Blockbuster CEO 'Confused by Fascination' With Netflix

#20

Post by dhimes »

cmos wrote: post #14

wow. He should be fired. Immediately. Just saying those comments should be career suicide. His PR person is probably freaking out. Why would the board of directors just wait around for a clueless leader to drive them into the ground? They lost the battle. Time for an aggressive plan B to stay in business. Attempts to sell consumer electronics in blockbuster stores are pathetic and have failed over and over again. Fir…

You have to be careful with the licensing on that one...but a good idea in concept
Post reply on HN