Netflix vs Blockbuster, 2004-2010

Uh, what?<p>Blockbuster had revenue of approximately $4 billion in 2010.[1] Where did the data come from for this chart? No operating business has zero revenue. Blockbuster has plenty of revenue, they just can't pull in enough gross profit to service their debt.<p>[1] <a href="http://investor.blockbuster.com/phoenix.zhtml?c=99383&#38;p=irol-newsArticle&#38;id=1426686" rel="nofollow">http://investor.blockbuster.com/phoenix.zhtml?c=99383&#38;p=...</a>

That is a GREAT chart. That is a classic example of the Innovator's Dilemma. What if you told BB in 2004 that if they moved into pushing mail order and streaming their 2010 revenue would be $2.2B -- what would they have done differently? Quite possibly nothing.<p>This is why these disruptions are tough to deal with. Trying to actually disrupt yourself could result in the loss of a LOT of revenue, but it saves the business. But who could foresee that?

This chart was created by somebody with a fundamental misunderstanding of what bankruptcy is.

So where did the other $3.8 billion in revenue go ?

This implies that Netflix one-for-one replaced Blockbuster. How can you ignore Redbox, iTunes, and the rise of On-Demand offerings from cable and satellite providers that all took place within the same time frame?

What about Redbox? Surely they put more of a dent into blockbusters business then netflix did? I always assumed netflix was competing against walmart/best buy dvd sales, and not blockbuster rentals.

Usa vs china aconomy would be similar by 2015