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Tactics of the dying

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Blockbuster once had the opportunity to buy Netflix for only $50 million but turned it down and thought the company was gonna fail. Fast forward a few years and blockbuster was fighting just to survive. It’s never easy when you turn a blind eye to the future and people get vicious when backed into a corner. I see a lot of similarity with certain banks and even other crypto currencies when they see Ripple and Xrp.

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Geeze, that tweet makes me feel embarrassed for block buster! A whole year for free? That’s like prison style desperation! 

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wallstreets nickname for amazon books was amazon.bomb     this is when the  the future is  right in front of your face

and you just dont see it

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This is something that I activly try to observe, and for the past few years was involved with an insurance company practicing these "tactics of dying".

Insurance: I believe that when a real "P2P Insurance" network like I have proposed with KarmaCoverage comes to the Risk Markets, it will be a "Napster moment" for traditional indemnity insurance services. 

Media: Once consolidated, new publishing terrain opened up... the Internet, and Blogging which is a P2P approach to Media caused an up roar for newspapers. Then Facebook put that on steroids by networking everyone's pages together. However the Media's business model of Advertising never changed, only the distribution & content creation methods.

Auto Manufacturing: With self driving cars, the business model of Producing/Selling Units is ending. Fortunately the auto manufactures are a rare example of executives that seem understand their business model is changing. This is why Ford has acquired Lyft, they are going to transform into fleet management service operators.

I also thought back when Google bought Motorola that they were trying to get a strategic chunk of the Auto Market, given their software capability far exceeds the auto manufactures abilities, they should be able to develop the autopilot and become an upstream supplier to the auto manufactures, possible even retaining the rights to the data streams. Then they bought also Waze.

The Internet: (this is where Ripple can impact) Bloggers are like Google and Fbook's by using an advertising business model. One of the things that could be incredibility powerful of near free micro payment TX costs, is a legit challenge to the internet's dependence on the advertising business model.

This could help Media step back from the easy temptation of writing ever more salacious content just to get more clicks & paid. Imagine an Ad Block, that just made micro payments to the Content Creator then sites that stop you from viewing them with Ad Block on would be happy to just get paid directly from the reader, and can give the reader a better experience (ads distract from actual content, which matters if you are proud of your content).

Banking: This one is more difficult than Insurance (which is a simple escrow service). Bankers provide a lot of regulatory value, security value, and through Lending do some capital allocation service which helps an improvement in the velocity of money in the economy.  I dont think this can go full stack P2P easily. With that said, if we have distributed Identity & easy KYC and AML api services for regulatory value, blockchain for security, we can get close. It is the 3rd part of capital allocation, and improving the velocity of money that I think is hard to get done via P2P methods. 

Funny story about Blockbuster... The leadership of insurance company I left had circulated an article about innovation and it was the Blockbuster / Netflix example. In the article it told how the Blockbuster CEO invited Reed (Netflix ceo?) to the board of Blockbuster to present his ideas. The board just couldn't stomach the idea of a Business Model Change.

A few years later the market conditions had changed and Blockbuster was getting beat handily by Netflix, so they fired the CEO. Then they get a new CEO who does some screw ball moves in an attempt to revive the dying business model that the board was sure to work. That failed.

Then they call the original CEO back and want him to do like Netflix and "save the company". 

The irony is in that... I had a meeting almost exactly 4 years ago with the CEO/Owner, President, and Regional managers of the insurance company about P2P, and how we could get first mover advantage (using Ripple), yada yada. They thought it was all entertaining, and said, "we expect innovation from our younger folks", as they saw me out the door. I assured them they had 5-7 years before this affected their bottom line. Now there are a dozen or so P2P insurance startups all over the world, most launched in the last 2 years. Time will tell.

 

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