And this is why Netflix's share price is a good 15 times higher than Blockbuster's right now
In the past, information was substantially easier to find on things that were new. Finding good movies in the so called "long tail" of a video store involved book research, knowledgeable friends, or lucky guesses. You could choose what had been recently marketed to you or the devil or the unknown box. Modern information networks have changed this reality largely in favor of the unknown box.
The truth is that a large percentage of new creation is not really worth your time. The biggest advantage the new stuff has is frankly that it is new. As information systems progress, people will have an easier time separating hype from substance. This will effectively make older quality creations more desirable.
It is probably fanciful, but I'd expect his statement to be exactly wrong in the long run. The reality may become "why would anyone want to watch new releases"?
The fact that the CEO is confused really is obvious in the market as well as in the interview.
NetFlix has become the premium rental service. RedBox is the budget service. Blockbuster is getting squeezed out of the market from both sides.
There is really a different problem here. It's probably true that most people want to see new releases. The problem is that Netflix has new releases and old movies also. So if you go with Blockbuster, you are stuck with only new releases. If you go with Netflix, you get everything. Why bother with Blockbuster?
Also, I guess there is an agile-ish mantra like "design products for yourself first". He is doing this, and is proof that it doesn't work for everyone. :)
'You' are probably representative of a bunch of consumers worldwide. Enough to make a market.
'He' isn't in that world. He's in the mass market world where you need 'market share' and 'mass appeal.' So being very appealing to some people is no good.
In that world, you needed to be 'good enough' for lots of people. Problem is people will move away from good enough to good when it becomes available. And it almost impossible to be good for everyone.
No retail employees.
A first-mover advantage in the online space.
No history of charging late fees. This is a really important point - in my mind, the name Blockbuster evokes the image of a scolding librarian who sells used cars on the side.
And, of course, Netflix also has a different CEO.
Translation: "I am not qualified for my job. I know nothing about my industry, or what my customers want. I get a nice paycheck though."
I'm frankly confused as to why a CEO would think that being confused about his competition would bring him more business.