John antioco net worth

6/29/16, 12:35 AMA Look Back At Why Blockbuster Really Failed And Why It Didn't Have To - Forbes

Page 1 of 9http://www.forbes.com/sites/gregsatell/2014/09/05/a-look-back-at-why-blockbuster-really-failed-and-why-it-didnt-have-to/#75647503261a

The Little Black Book of Billionaire SecretsSEP 5, 2014 @ 11:38 PM 154,856 VIEWS

A Look Back At Why Blockbuster Really Failed And Why It Didn't Have To

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In 2000, Reed Hastings, the founder of a fledgling company called Netflix, flew to Dallas to propose a partnership to Blockbuster CEO John Antioco and his team. The idea was that Netflix would run Blockbuster’s brand online and Antioco’s firm would promote Netflix in its stores. Hastings got

Greg Satell , CONTRIBUTOR

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6/29/16, 12:35 AMA Look Back At Why Blockbuster Really Failed And Why It Didn't Have To - Forbes

Page 2 of 9http://www.forbes.com/sites/gregsatell/2014/09/05/a-look-back-at-why-blockbuster-really-failed-and-why-it-didnt-have-to/#75647503261a

A quick little survey.

1 Which of the following musicstreaming devices have you heard of?

Samsung Shape Sonos Play

Chromecast Audio Bose SoundTouch

None of the above

PrivacySCRUTINEER

laughed out of the room.

We all know what happened next. Blockbuster went bankrupt in 2010 and Netflix is now a $28 billion dollar company, about ten times what Blockbuster was worth. Today, Hastings is widely hailed as a genius and Antioco is considered a fool. Yet that is far too facile an explanation.

Antioco was, in fact, a very competent executive —many considered him a retail genius—with a long history of success. Yet for all his operational acumen, he failed to see that networks of unseen connections would bring about his downfall. Over the past 15 years, scientists have learned much about how these networks function and how his fate could have been avoided.

A Social Epidemic

When Hastings flew to

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6/29/16, 12:35 AMA Look Back At Why Blockbuster Really Failed And Why It Didn't Have To - Forbes

Page 3 of 9http://www.forbes.com/sites/gregsatell/2014/09/05/a-look-back-at-why-blockbuster-really-failed-and-why-it-didnt-have-to/#75647503261a

Dallas and proposed his deal in 2000, Blockbuster sat atop the video rental industry. With thousands of retail locations, millions of customers, massive marketing budgets and efficient operations, it dominated the competition. So it’s not surprising that Antioco and his team balked at simply handing over the brand they had worked hard to build.

Yet Blockbuster’s model had a weakness that wasn’t clear at the time