I read a quote in the newspaper last month and it completely blew my mind. Contained within a story on the closing of a Rogers Video store here in Nanaimo, the paper had some words from an independent video store owner:
John Erickson, the owner of Dover Road’s More than Movies, said while he is experiencing “challenges” due to online movie services like Netflix, he feels they are a “flash in the pan” and won’t impact his business in the long-term.
Challenges!?!? That’s putting things extremely lightly. Netflix and dozens of other content services are growing exponentially, Blockbuster went bankrupt, and physical media is going to be extinct in the near future. That this owner can admit he is facing challenges, but maintain that his business won’t be impacted in the long-term is unbelievable.

I’ve got nothing against John or movie rental stores, but I do have a problem with ignorance. In my final year of university we read a case study on Blockbuster and the challenges they faced as Netflix and other services started to present a significant threat to their business. They knew they had a serious problem and tried to face it head-on in 2004 when they launched their Blockbuster Online service. It was the right move, but it was too late. You know the rest of the story (bankruptcy, 2010).
My point is that if a giant like Blockbuster can recognize that the market is changing, make the correct changes to its business, and still fail, I don’t have high hopes for a small shop who sees the same challenge and chooses to ignore it.