It shouldn’t have been a surprise, really.
The local Blockbuster shut down last week. Online rental, video streaming, and movie on demand dominate the brick and mortar video industry. And, although I’m sure all of these in-home options played a part in the demise of our local Blockbuster, there was another factor involved here. In our little central Texas town “going out to rent a movie” is considered “Entertainment.” So I think what really took this big boy down was the little kiosk called Redbox. It’s convenient, it’s cheap, and you still get to leave the house to choose your movie. Never mind the fact that browsing takes place on a video screen. Hey, I told you it’s a small town. We’re easily entertained.
Twelve years earlier Blockbuster moved into our town and ran almost all of the mom-and-pop video rental stores out of business. Ironic that this giant was brought down by a little red kiosk with a footprint the size of a phone booth.
Did Blockbuster see Redbox coming? Or were they scanning the horizon for a bigger predator competitor? What about your business? It’s not always the big-boxes and the mega-retailers you have to worry about. Sometimes competition comes in a small package.
Just ask Goliath.