Then Hastings laid out a scenario at once alarming and exciting: If Blockbuster and Amazon matched or beat Netflix’s new eighteen-dollar price, video stores in America would be vacant within a few years. The $8 billion in U.S. store rentals would pour into online rentals, setting off a grab for subscribers, he said. The ensuing growth of online rentals would cannibalize video stores faster and faster, until they collapsed. As video store revenue dropped sharply, Blockbuster would struggle to fund its online operation, he concluded. “The prize is huge, the stakes high, and we intend to win.”
an insight, usually very simple. thats what it takes... #netflixed
