Wednesday, December 21, 2011
Remember this? Government claims Blockbuster monopoly and blocks merger with Hollywood Video
Everyday the government makes claims that are laughable, but sometimes they seem more laughable a few years after the fact then they seemed at the time. Case in point, in 2005 the FTC blocked a proposed merger of Blockbuster Video and Hollywood Video, making the claim that this merger would create a monopoly in the video rental business. Even at the time this seemed ridiculous, in 2005 Netflix was already a large company, video on demand was already available, and internet video streaming was obviously on the horizon. Now both companies are bankrupt, squeezed out by competition the government refused to acknowledge even existed.