macd-gm wrote:On the one hand, i think producing content on the internet is a money making proposition. But i don't think that money is from subscription fees but from advertising and other tie ins.
Blockbuster just had a business that made no sense in the age of the internet. They should have transitioned to be red box, but in reality red box's life span is really short. They only exist because there are still places without good internet. It's been 10 years since i owned a cd or dvd player. At this point, holding media on storage disks in my house just seems like a giant waste of money, space, and resources to produce them.
All of this is correct. The Athletic has to have multiple revenue streams to protect itself from irrelevance and competitors in any single market.
Blockbuster had such a major market share they got fat and lazy. They were more concerned with keeping Hollywood Video off their backs than adjusting to a changing reality in how people consume entertainment. The same can be said for broadcast TV. (I'm honestly not even sure how Fox, NBC and ABC are still around. Can their entire existence really be maintained based on live news, live sports and reality TV?)
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One thing about Redbox I didn't consider as a young investor in my 20s, is who they were targeted at.
Rural households and lower income families. That's why they are mostly still in Walmarts and McDonalds. They're targeting poor folks who don't have Wi-Fi for streaming and who can't afford premium cable packages.
You can rent a movie from your local Walmart for a $1.50. Or a video game for a few more bucks. (I think.) There is very little overhead.
It's not gonna make any one person rich, but it's a solid tertiary income if you were able to get in on the ground floor.