In 2008, the Motley Fool asked Blockbuster CEO Jim Keyes how he was responding to his biggest competitors. His answer? Not at all. "Neither RedBox nor Netflix are even on the radar screen in terms of competition," he said. It wasn’t a new attitude, either. Just three years earlier, Keyes’ predecessor passed up the opportunity to buy Netflix, the video-by-mail turned video-by-streaming company with a $94 billion market cap, for a mere $50 million.
Today, Netflix is one of the most powerful media companies around, while almost no Blockbuster stores remain in operation. Life comes at you fast.
So, what does Blockbuster, the one-time corporate leader turned cautionary tale of failure, have to do with the legal profession? Hint: it has nothing to do with VHS tapes and everything to do with failure to innovate.