During my lifetime I have seen the evolution of movies from premiering only at movie theatres, with long lines to get a ticket to be the first to see a feature film, to the development of 2nd run boutique theatres showing the same featured films a few months later. The boutique establishments wagered that adding amenities like comfy seats, more intimate venues, better food at your seat, including alcohol, would give the consumer a choice to defer the instant gratification of “I saw it first” for “I can wait, save money and see it in a more comfortable personalized surrounding.” They were right, for a while.

David Cook saw the trend of deferred demand and thought, “why wait and see it in a theatre?” Coinciding with larger televisions, Dolby surround sound audio, he surmised correctly that many people would enjoy the movie more in their own home. By licensing the release of films with major production companies and utilizing the VCR technology available, he created a new market in video rental. The ever-present yellow and blue signage became a destination and the Starbucks of its day. Nearly (well, it seemed like it) present on every corner, crowds of the community flocked to the stores to be the first to see a recent, now released on video, movie. Heck, he even added his own branded popcorn at the checkout in his Blockbuster stores! *
Rent-Watch-Return became common place with the ever present “Please be kind and rewind” stamped on each rental. The selling point was convenience and access.

The advent of DVD enhanced the quality (and forewent the hassle of rewinding) and companies like Redbox started showing up as a more convenient way to rent movies for entertainment. This yielded even more consumer choice. You could still clamor to be first to see a feature film at the theatre or wait to rent it later, while making your own popcorn at home. Convenience and choice prevailed for the consumer and the market expanded. Until one day, streaming services like Netflix changed the dynamic and disrupted the status quo.

Not only does streaming allow convenience, but also, multiple choices of near unlimited movies able to be watched or rewatched without any extra fee. Why schlep down to a Blockbuster video store any longer? The increased freedom of choice and convenience put Blockbuster and most video rental stores out of business. ** The next step in the evolution as more streaming channels entered the market was a need to create and produce their own movies, documentaries and/or show series. Why license someone else’s products when we can produce our own? High quality Netflix, Paramount, Prime video productions now abound and “binge watching” is the cannon of our current generation.

Which brings us back to eye care. There are disruptive services at play in the optical space, many threatening the viability of a previously lucrative business model. Would you rather be more profitable in your Blockbuster business or choose to be in the streaming business, with slightly lower margins, yet larger growth opportunity? I am not saying that optical will go the way of Blockbuster video…yet. But intuitive people see it for what it is; a still somewhat profitable business line with declining margins (especially after vision care companies are involved and take their cuts) and less of an only choice draw for the consumer.

We are in an era of self-help, nutrition, clean eating and an evolving desire to prevent a problem rather than waiting for the problem to arise and treat. Further, with a desire for more personalized rather than population-based care, the consumer wants a partner. Glasses have become a commodity with much more freedom of choice and accessibility to the consumer. Products are inherently transactional. Care is based on a relationship.

Success in the long term is knowing what business you are in (or want to be in) and striving to accelerate and deepen that position in the mind and eyes of the consumer. This demands a focus on how you lead, manage and deliver the services you offer. It is observed in strong businesses that once you know your position well, every decision, conversation and process will enhance that position. The most fatal flaw is not knowing your position or even worse, trying to say you are one thing but managing as though you were the other. That mismatch is a prescription for demise and confusion among your customers and staff.

I’ll show examples of this in future discussions. For now, think deeply about whether you want to be care-based or retail oriented? Are your actions consistent with your positioning? Are you building a better Blockbuster store in an era of streaming service? Ultimately, the consumer decides and migrates to what they want, and not what you offer. Choose wisely. The choice in healthcare is also a decision of how you want to be perceived. Are you a doctor with freedom of choice and the ability to adjust and respond to changing patient needs, or are you a worker in a system of care that is designed toward homogeneity, where someone else dictates what, and how you do what you do, for your paycheck? JLK

*Ultimately Wayne Huizenga purchased, and grew Blockbuster stores to a rate of new store openings every 24 hours in the late 1980’s to early 1990’s. He had the foresight to see streaming as a disruptive threat and sold to Viacom in 1994 for 8.4 billion.

**At its peak, about 9000 Blockbuster stores existed. There is but one store left, yet you have to travel to Bend, Oregon to see and rent from it today.