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Tech Disruption

Why Did Blockbuster Die? In the Next Decade, Many More Companies Will Too.

Samai Patel
#legacy-modernization#technical-debt#AI#business-strategy

In 2000, Netflix offered to sell itself to Blockbuster for $50 million. Blockbuster laughed. A decade later, Netflix was worth billions. Blockbuster became a memory we all cherish.

Why did Blockbuster die?

There wasn’t a single reason. It was a combination of missteps:

Today, history is repeating itself.

Speed is All That Matters

Established companies today face the same threat Blockbuster did: smaller, scrappy startups with zero legacy baggage.

Startups can deploy products in weeks with AI that can replace 80% of the work your team has done over decades. Meanwhile, big companies are stuck in six-month release cycles.

AI isn’t the disruption. Speed is.

Industries that once seemed untouchable—retail, transportation, manufacturing—are no longer safe. Branding and advertising can help, but the real differentiator will be technology and how fast companies can move.

What Happens When Companies Slow Down?

It’s not industry-specific. Speed is industry-agnostic.

What Can Companies Do?

  1. Cut Complexity: Simplify infrastructure and kill dead code.

  2. Empower Teams: Smaller teams with full ownership ship faster.

  3. Automate Everything: Modernize legacy systems before they become a drag.

  4. Invest in Telemetry: You can’t fix what you can’t see. Invest in observability tools to understand bottlenecks.

The playbook is simple: move fast, or be replaced by those who do.

Just ask Blockbuster.


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