Blockbuster video had little competition when Netflix came out with its own DVD video product. Blockbuster was the only rental chain in the country. It was the 800 pound gorilla. Streaming had come onto the scene, but it wasn’t quite good enough yet in the early 2000s. Netflix was biding its time until streaming became viable.
Netflix created a subscription model. They’d send you a DVD, you could keep it as long as you wanted, and when you returned it, you could get another DVD. They knew this subscription model would eventually become a streaming subscription model.
The CEO of Blockbuster, seeing what Netflix was doing, went to his board, wanting to develop a subscription model. The Board would not allow him to make that change.
Why?
Because 12% of their revenues came from late fees. The Board was too afraid to lose 12% of their revenues, so instead they lost the entire company.
And that’s the problem. Sometimes you must take a short term hit to your revenue stream to keep up with the innovations in your marketplace, especially when testing new models. This is especially true when someone else has already experimented with those new models.
What are those innovations and models in the estate planning and administration marketplace? What have firms been successfully experimenting with?
I’m glad you asked! Because THAT is exactly what you’re going to learn at Practice Xcelerator September 14 and 15th in Atlanta!
And don’t miss our next Xclerator Preview – “5 Ways to Generate Revenue from Routine Requests” TODAY! REGISTER NOW!
