Blockbuster Exec 'Struggled Not to Laugh' At Netflix When They Offered to Sell For $50 Million In 2000

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Automatic TRANSCRIPT

Back in the year two thousand the CO founder of Netflix Mark Rudolf. He was the first CEO of net flicks was able to get a meeting with the C. E. O. of blockbuster. I named John and Yoko and this meeting eating was going to be in Texas so Marc. Randolph and his netflix executives jumped onto a private jet owned by Van Away. Yeah that's right from wheel of fortune. She has a private ship when she's not using it. She charters it and let other people use it on so that's just one inside note. Here is also making money off of chartering a private jet that sinking letters she doesn't even turn them she ports letters for a alluded go back around the fire we go so the net flicks team gets on. Vanna White's private jet and they fly Dallas and they meet with the CEO of blockbuster and and the other blockbuster executives and the Netflix guys pitch a plan to blockbuster. They said we need to merge blockbuster. We've got Dr Incredible Netflix. Dvd By mail operation which seems to be going very well and you've got all of these stores think what we could do take gather and and the CEO of blockbuster. people in the room said was struggling not to bust out laughing in their faces. No kidding it at the time. Netflix offered blockbuster net flicks for fifty million dollars which is a lot of money and in the year two two thousand when this meeting went down Netflix was actually losing money. They were going to lose like eight million dollars that year. Netflix wasn't then what it is now fifty the million dollars in this league at this level is chump change even then right fifty million dollars and at that point the C. Joe lost his composure and started of blockbuster and started to giggle and the whole deal went down they got laughed out of the room and the net addicts team got back on Vanna White's plane and they headed back home to their headquarters now at first blush. You're saying what an idiot the blockbuster. CEO Oh was but given the time and given the situation that Netflix was in and given their delivery system which when they were sending those to your house I always thought was a little oh sketchy as far as a business platform. I don't think the blockbuster guys were really stupid. Guys now what you know now. I don't think the the blockbuster guys were paying enough attention and here's why when I was a freshman in high school I remember learning that soon in movies were gonNA come to our houses over the phone lines and that was significantly before the year two thousand. I see what you mean so they weren't they were cocky and arrogant again and they weren't paying attention to what was coming down the road just a couple of years later. Netflix went public with a market cap of six and a half billion dollars yes and then seven years later they began offering streaming movies as opposed to DVD. Reynolds meanwhile blockbuster peaked in two thousand and four and went bankrupt in two thousand ten. The streaming thing was the key you're right. They should have been aware that straightening was going to become as the old delivery system through the mail was not not that big of a competition a blockbuster anybody that was paying attention knew that the the DVD's through the mail and the DVD's at the store there was an a a ticking clock on that store it right right but the blockbuster guys were so arrogant and so- dismissive of this little scrappy weird startup that nobody's ever heard of that they left them out of the room and back onto Vanna White's and today net stream is a global force of domination and and blockbuster is a punchline on

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