3 ms·
In the same year that Reed Hastings was laughed out of the conference room, Blockbuster announced a partnership with Enron for Videos on Demand. https://www.fo
by schnevets 8y ago
In the same year that Reed Hastings was laughed out of the conference room, Blockbuster announced a partnership with Enron for Videos on Demand.
https://www.forbes.com/2000/07/20/mu4.html#545092873541 https://www.forbes.com/2000/07/20/mu4.html#545092873541
The partnership lasted a single year. I wonder which event happened first? If they met with Enron first, it seems the morale is to move fast and never underestimate what the future holds. If they met with Netflix first, I'd say it's don't be as skeptical to the big guys as you are to the startup.
- stephengillie 8y agoIt seems so bizarre - a rental company would stream video, through an energy company's fiber optic cables. Didn't this seem incongruous to anyone at the time? https://youtu.be/5sMXR7rK40U?t=6m8s https://youtu.be/5sMXR7rK40U?t=6m8s
- mjcl 8y agoThe idea of “Enron Broadband” seemed ridiculous to me at the time.
- martinald 8y agoEnron didn't have any last mile broadband capability. How did this deal get done?
- filmgirlcw 8y agoThe same way all of Enron's deals got done. Lies about capabilities/offerings and then shady accounting to cover up reality.
- stephengillie 8y agoAnother video talks about Enron using mark-to-market bookkeeping to record $100 million in revenue from the 20-year deal. https://youtu.be/hwollZoVmUc?t=4m44s https://youtu.be/hwollZoVmUc?t=4m44s
- filmgirlcw 8y agoYup, which was their MO. Skilling insisted the company move to mark-to-market accounting, something not common with non-financial companies (and for good reason), which meant marking down the perceived value of the contract and then later, not bothering to update for the loss.
- opencl 8y agoEnron provided backhaul, last mile was handled by various DSL providers depending on region. Of course ultimately the deal didn't get done, the service was available in a handful of test markets for ~3 months before the whole thing was canceled.
- deelowe 8y agoIs it because telco was a lot different back then with all the clecs and the bells sharing co space?
- pwned1 8y agoOld Enron commercial on selling unused broadband capacity like a commodity: https://www.youtube.com/watch?v=qnWbI9RzJqY https://www.youtube.com/watch?v=qnWbI9RzJqY