Valuetainment - May 21, 2019


Episode 307 - Netflix – The $150 Billion Mistake

Hosted by
Patrick Bet-David
Mentioned
Blockbuster John Bezos Patrick Bett David Snapchat Ralph Zuck
Episode 306 - Best New Year Resolution Episode 308 - Optimism Alone Isn’t Enough

Episode Stats


Length

6 minutes

Words per minute

165.75

Word count

1,080

Sentence count

7


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In today's Value Tainment, Patrick talks about a $150B mistake a company made many, many years ago, and how it led to Netflix going from being a $50M company in 2000 to a $147B company today.

Transcript

Transcript generated with Whisper (turbo).
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach
00:00:09.240 the sky, turn the stars up above, cause it's one time for the underdog, one time for the
00:00:16.240 underdog.
00:00:17.340 I'm Patrick Bedevi, your host of Value Tainment, and in today's episode, we're going to talk
00:00:20.980 about a $150 billion mistake that a company made many, many years ago.
00:00:26.860 I want you to be thinking about two words, shifting habits, once again, shifting habits,
00:00:32.340 but I'll come back to those two words here in a minute, so let me tell you this story
00:00:35.540 about this company, it's 1984, a company gets started, it's got a yellow and a blue logo
00:00:40.900 called Blockbuster, Blockbuster's a great story, you know, you'd go to Blockbuster with your
00:00:46.160 girlfriend or your husband or your wife and say, you know, do you want to go to the horror
00:00:49.700 section?
00:00:50.120 No, no, maybe comedy, no, babe, we got to go to drama, and I'm telling you, babe, I almost,
00:00:55.440 I'm certain this movie's not going to be available, but if it is, oh, it's our night
00:01:00.100 tonight, you'd go, oh, I knew they didn't have it, why don't we go ask the manager, the
00:01:04.700 manager may know, because maybe somebody just turned it in, hey, John, how are you, it's
00:01:08.320 us, good to see you, John, did anybody by any chance turn in?
00:01:12.640 No way, oh, you're so, John, you're always come through, thank you, they just dropped it
00:01:18.300 off, oh, thank you, oh, that family right there dropped it off, it's so great, you guys are
00:01:23.300 so amazing, let's take this movie, let's buy some popcorns and candy as well and ice cream
00:01:27.240 and let's go on, that's 1984, they got started, by the way, most people don't realize, Blockbuster
00:01:33.100 only after nine years was worth $8.4 billion in 1993, by 1997, a company got started called
00:01:41.940 Netflix, it's only worth $50 million three years later, Netflix, $50 million three years
00:01:48.740 later, okay, then at one point, Blockbuster could have bought Netflix for $50 million,
00:01:55.780 but they said, I just don't think that's the direction consumers go into, I don't think
00:02:00.200 they're going to shift their habits to this area, because people like the experience of
00:02:04.100 coming to Blockbuster and actually seeing the DVDs they pick up, nobody wants to just
00:02:08.840 download a movie, it's not going to be taking place, people are smarter than that, well,
00:02:14.000 149 million users worldwide disagreed with them, and then Netflix went from being a $50
00:02:23.380 million company in 2000 to today, as of just a few minutes ago when I checked, it's a $147
00:02:30.180 billion company, by the way, Blockbuster on September 23rd, 2010 went out of business,
00:02:35.740 they filed bankruptcy, I think like for $930 million and they're gone, so what's the moral
00:02:41.420 of the story, well, Netflix, since Christmas, their stock is up 50%, 50%, just in 2019, in
00:02:49.980 the first 19 days of the year, 19 days of the year, Netflix is up 35%, again, 35% Netflix
00:02:58.560 is up, that's a love story for some, a horror story for a few, a fantasy type of story for
00:03:04.620 others, and an obviously money-making story for those of us that were involved, now having
00:03:09.700 said that, what do you mean by shifting habits, look, so many people want to be innovators
00:03:14.940 and they want to, you know, shift their industry, oh my gosh, I want to be an innovator, I want
00:03:17.800 to be a disruptor of my industry, look, Bezos shifted our habits, we stopped going to bookstores
00:03:23.000 to buy books, because he said, I'm going to shift your habit of the way you buy books, that's
00:03:29.580 why Walmart is afraid of Amazon, right, Instagram shifted our habits of the way we looked at albums,
00:03:37.460 when's the last time you bought an album, and the list goes on and on, Google, Wikipedia,
00:03:44.220 put encyclopedia companies out of business, how many times you go to Wikipedia to find
00:03:48.760 out about different things, all the time, the moral of the story is this, Netflix shifted
00:03:55.400 our habits, and I know, you know, Disney's about to come out with Disney flicks or whatever
00:03:59.140 they want to call it, and I know one of the Disney executives said, you know, we're not really
00:04:02.580 trying to compete with Netflix, we like Netflix, I use Netflix, we're just going to put out
00:04:07.260 our Marvel products and Star Wars products and all this other stuff, but Netflix becomes
00:04:12.500 the one that led the way, and no one even thinks about Redbox anymore, because Redbox
00:04:18.060 at first made sense, and by the way, if you say, I still use Redbox, you're probably over
00:04:22.580 40 years old, I'm not trying to offend you, but if you still use Redbox, you're over 40,
00:04:27.260 you go to Kroger's, Ralph's, wherever it is to get your movies, look, stop trying to come
00:04:34.080 up with a great idea, start thinking about shifting habits, not seven habits of highly
00:04:39.860 effective people, shifting habits, how do people buy your product, how can you shift that
00:04:45.140 habit, how do people buy the product from you, how can you shift that habit, and those who
00:04:51.920 can become the Bezos, become the Zucks, become whatever you want to call it, of their industry,
00:04:59.240 because they shifted someone's habit, that's all you got to be looking at, not all this
00:05:03.580 other crazy fancy stuff, so by the way, will Facebook ever be put out of business, yes,
00:05:09.940 by somebody who shifts our habit, and Zuck says, there's no way in the world that's the
00:05:15.100 direction people are going to go to, and we'll go that direction, that could also happen to
00:05:18.880 Amazon, and other companies, as long as a new innovator is able to shift our habit,
00:05:26.320 food for thought, when you're thinking about growing your business, and taking it to the
00:05:30.500 next level.
00:05:30.980 Thanks everybody for listening, and by the way, if you haven't already subscribed to
00:05:34.280 Valuetainment on iTunes, please do so, give us a five star, write a review if you haven't
00:05:39.520 already, and if you have any questions for me that you may have, you can always find me
00:05:43.140 on Snapchat, Instagram, Facebook, or YouTube, just search my name, Patrick David, and I actually
00:05:48.700 do respond back when you snap me, or send me a message on Instagram.
00:05:52.980 With that being said, have a great day today, take care everybody, bye bye.
00:06:00.980 Thank you.