FROM PROSPERITY TO EXTINCTION: A TALE OF BLOCKBUSTER PROPORTIONS

WHY ADOBE CHOSE TO GO THE WAY OF NETFLIX

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”

LEO MEGGINSON, ON CHARLES DARWIN’S RESEARCH

“Whatever happened to Blockbuster Video?”

“I don’t know. I think

there’s still one in Alaska...”

David Cook takes his experience with big data and creates the firstever Video store.

His business model is revolutionary: customize a store to suit the demographic profile of a neighborhood.

goes on to become an industry leader in both video rentals and late fees, simultaneously bringing joy and pain to millions.

OCTOBER 19, 1985DALLAS, TEXAS

Reed Hastings is slapped with a $40 fee for returning Apollo 13 late.

He uses this as motivation to create a new kind of video rental model.

Hastings co-founds

You may have heard of it.

FAST FORWARD TO 1997

Hastings approaches CEO John Antioco and offers to sell him ownership of $50 million.

Antioco turns him down, claiming is a “very small niche business.”

Y2K - 2000

DICTIONARY DEFINITION

i·ro·ny (noun)A state of affairs or an event that seems deliberately contrary to what one expects and is often amusing as a result.

is at its peak, with 60,000 employees in 9,000 stores worldwide.

Its market value is $5 billion, with revenues of $5.9 billion.

2004

LIFE IS GOOD...

By 2007, is starting to lose its shine. In Q3 alone, it loses 500,000 subscribers.

2007

Oops, spoke too soon!

Over the next 4 years, it loses millions more to and both of which are offering direct-to-customer services.

Dish Network purchases Blockbuster at auction for $233 MILLION, with the name mostly relegated to

Dish’s on-demand streaming service.

2011

Dish Network’s “Blockbuster@Home” television package is renamed the “Dish Movie Pack.”

That same year, Netflix’s market value stands at

$32.9 billion.

2015

“OUCH!”

WHAT IS THE LESSON HERE?

2015

THIS IS ABOUT FAILURE TO CHANGE.

recognizes a shift taking place in the software industry and releases

Creative Cloud 2015.

In many ways, this signifies their “Netflix Moment,” with the company releasing a subscription-based version of its software, making it more

affordable, flexible and accessible to customers than ever before.

2015

But, like all big changes, there has been push back and a reluctance from some users to adopt Creative Cloud

after years of standalone software versions.

By the end of 2015, Netflix had around 75 million subscribers worldwide.

Despite the continued existence of pay-to-own options for movies and shows, Netflix has seen an unbroken upward trend of subscribers over the last 5 years.

It’s not just about the selection of titles, or the attractive price for Netflix.

The biggest advantage of subscription model is the ability for users to tailor their use of the product to fit their lives.

Similarities can be drawn between and

Creative Cloud allows for instant access to software updates, compatibility across multiple devices, and collaboration capabilities that only come with a cloud-based platform.

Organizations no longer have to worry about employees sharing licenses and bringing that liability down on the business.

No more productivity-killing days when you’re forced to upgrade all your software on an office-wide scale.

Just safe, universal, up-to-date tools across every device you’re using.

Don’t ignore where your team is heading...

Don’t become the person still renting DVDs while everyone else binge-watches the entire season.

Don’t insist on repeating the same actions you have in the past, simply because that’s how it’s always been done.

Keep your organization connected, flexible, and alive (RIP Blockbuster).

Connect with our Adobe Team at Softchoice to learn more about Creative Cloud and the many subscription options available.

ABOUT SOFTCHOICE

As a leading North American provider of IT solutions and managed

services, Softchoice combines the efficiency and reliability of

a national IT supplier with the personal touch and technical

expertise of a local solutions provider.

We are 1 of 7 Platinum Partners of Adobe, SAM Certified

and authorized to sell the entire portfolio of Adobe products.

With a dedicated team of Adobe experts, we are ready to help

with your questions.