I have recently watched for the second time the movie "Be Kind Rewind". The movie tells the story of two young men who needs to film new VHS movies at a rental store, after the tapes have been demagnetized.
The movie tells us about this video rental business which is going in limbo, near to foreclosure, while the DVD rental business is booming. The store still uses VHS tapes while everyone is switching to DVD, and this business move led to the issues the store experiences.
I have watched the movie the first time while I was in the US back in 2008, and rented it at my local Blockbuster. Blockbuster was at the time a very strong institution, and indeed may have shut down many VHS business not ready to the DVD boom. As I am now 30, I have seen the arrival of VHS rental stores, then the boom of the DVD equipment (I was a salesman at La Fnac selling those DVD players in 2003), and the market of DVD rental plummetting.
And as VHS stores did not see the DVD business coming, Blockbuster has gone.
What I am trying to say is that:
- it is always difficult to see the obvious coming while you are good at a businness
- Even though you see it coming, moving 360 degrees your business modell while you have strong revenues is not as easy as it seems (change the revenue stream, the technology, the brand positionning, the distribution channel...)
- Changes come fast: The Blu Ray does not have ten years it is almost obsolete.
This is the reason why it is important to have a strong business model with core value, but also to embrace new technologies, new ideas, and move forward.
And as VHS stores did not see the DVD business coming, Blockbuster has gone.
What I am trying to say is that:
- it is always difficult to see the obvious coming while you are good at a businness
- Even though you see it coming, moving 360 degrees your business modell while you have strong revenues is not as easy as it seems (change the revenue stream, the technology, the brand positionning, the distribution channel...)
- Changes come fast: The Blu Ray does not have ten years it is almost obsolete.
This is the reason why it is important to have a strong business model with core value, but also to embrace new technologies, new ideas, and move forward.
