Netflixed: The Epic Battle for America's Eyeballs

by Gina Keating

As Antioco rode up into the hills above Park City’s crowded main streets to the address Hastings had indicated, he thought about the three years of gambles, sacrifices, and bravado it had taken to finally gain the upper hand against a foe whose success was riding on the demise of the video store. Still, it had cost him upwards of $500 million to rectify his mistake in not buying Netflix at $50 million when he had the chance. Netflix had gone on to spend a nearly equivalent amount to build and market its service in the ensuing years, but there was no disputing that its superior platform was the product of years of testing and tweaking and perfecting. The cab arrived, and Antioco paid and stepped out onto the porch of the steepled redbrick building where he had been let out. The Netflix chief answered the door himself. As soon as they sat down with their drinks, Hastings cut the pleasantries and turned serious. He congratulated Antioco for the success of Total Access and admitted that the promotion had definitely gotten Netflix’s attention over the holiday quarter. It was a great proposition—and Netflix couldn’t really match it, Hastings continued, but his analysts had calculated that each in-store trade was costing Blockbuster two bucks. With no limits on the number of movies Total Access subscribers—now three million strong and growing—could check out each month, Blockbuster’s debt would add up fast, Hastings observed. Antioco waited for Hastings to come to the point. The ...