Why accurate information can make the difference between business success or business failure

“‘Knowledge is power,’ quipped Francis Bacon. But how many of us are truly empowered?”

Once upon a time, in the land of VHS tapes and late fees, Blockbuster was the king. Picture it: a Friday night, wandering the aisles, the smell of microwave popcorn in the air, trying to decide between a classic like “Jurassic Park” or the latest rom-com. Blockbuster was the go-to hangout spot. Their blue and yellow sign was like a beacon calling you to a world of cinematic possibilities 📽️

But while Blockbuster was chilling on its movie rental throne, a new challenger entered the arena: Netflix. Founded in 1997, Netflix started as a mail-order DVD rental service. You remember those red envelopes, right? The idea itself was revolutionary – no late fees, unlimited rentals for a flat monthly fee, and the best part? No need to leave your comfy couch! You’d think, “That’s neat, but surely they can’t dethrone the mighty Blockbuster?” 📀

Now, here’s where the plot thickens. While Blockbuster was counting its cash and scoffing at these upstarts, Netflix was playing the long game. They used real-time data analytics to track what viewers liked, when they watched, and even what parts they might rewind to watch again (yup, the juicy bits!). This information wasn’t just fun trivia; it shaped their decisions on what movies and shows to acquire next ☝️

By the time Blockbuster realized the winds of change were upon them, Netflix had already made its next power move: streaming. Oh yes, the same company that mailed DVDs was now letting people watch movies and TV shows instantly online. Mind. Blown 🎞️

Remember those late fees we talked about? Well, Blockbuster finally decided to eliminate them, but it was too little too late. Netflix was already busy producing its original content, thanks to the insights they gleaned from user data. They gave us shows like “Stranger Things” and “The Crown,” ensuring our weekends were, well, booked 👈

To wrap it up, Blockbuster had the chance to buy Netflix in the early 2000s for a mere $50 million. They laughed it off. Fast forward to today, Netflix is worth billions, and Blockbuster? Well, there’s just one store left, nestled in Bend, Oregon, a nostalgic relic of a bygone era 👈

The moral of the story? Accurate, up-to-date financial data isn’t just numbers on a page. It’s the compass pointing to where the market’s headed. And if you’re not watching (pun intended), you might just end up on the rewind reel of business history 😟

Disclaimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.