Why did Borders go Bunkrupt?

Borders Bankruptcy

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Borders Bankruptcy


Why did Borders go bankrupt?

First, I will miss not having a great bookstore to amble around.

Here are four discussion points as to why Borders failed.

One

Borders should have better diversified into the two main selling platforms: store location and Internet (bricks and clicks)

Their clicks/Internet division was clunky and not intuitive. It was not maintained. It should have been interactive so customers would become engaged with the Borders web site. This is bad Internet customer service!

Visits to a website (or store) prompt more purchasing.

Also, they could have greatly reduced the price of shipping a book by having the purchaser go to the store to pick it up for FREE (and then probably have purchased something else at the store! See how Wal-Mart does this!)

Two

They needed to get their book prices down. We all KNEW that the book we wanted would be sold on-line for 1/2 or less the price! Negotiate strongly with the publishers as they need to sell in a different business paradigm now too! This also meant bringing down their overhead! See item three and four to help with this!

Three

Add a trade-in and re-sell section to help with the bottom line. (Oh, no, they were not TOO GOOD for this!) They had the staff and the space. This would draw in more customers.

Four

The coffee shop needed to be more inviting. Add some practical priced items. Add some comfy chairs and music. Create a destination point not just an after thought area! Encourage and start book clubs, Scrabble clubs, writer’s groups etc. Visit a real Starbucks location and learn! some of the stores use to do these types of customer oriented events.

Five

Run fast from those pricey mall locales to equally well located but less expensive neighboring locations. Learn from the Walgreens formula for this one. Walgreens left the high price malls. Walgreen’s real estate department built free-standing sites which they then lease back to the retail division of the company at a tax benefit!

Yes, the Borders that remained would have been a different derivation. Maybe they could have remained in business.


What do you think?


What do you think?

Could Borders have been saved from bankruptcy? (If so, add a comment as to how)

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Comments 44 comments

Mengqi Li 5 years ago

There's a pessimistic opinion that traditional bookstores will eventually disappear if they don't turn into dependencies of the online booksellers as amazon.

I wished to open a bookstore myself. However, the only practicable way to survive seems to be a recommending and exhibition area of books for online bookstores (excluding the cafe part), for online bookstores offer far lower prices by keeping all the book via bytes, which nearly needs no marginal cost. Only after one's order, the book will be printed.


Andrea Halliburton 5 years ago

MY friends and I have talked about borders. We are very anti ereader, ipadbooks, and the such. A bound book with amazing smelling pages is how we like to do it. We also like to browse the actual books and not look at titles online. We had discussed how borders often gave a lot of discounts and sales and did very little to encourage their online. So even though we loved the brick and mortar business...we know way more people who like shopping online. So we realized that they weren't getting very much money from people like us due to shopping the sales and they were getting even less from online sales. I really miss borders :(


Carolynn Nguyen 5 years ago

I agree that Borders could have definitely used to technology to their advantage. They could have created an e-reader like Barnes and Noble's Nook and made their website more user friendly. Towards the end of their business days, I started realizing books on their shelves that didn't even have Borders price tags on them, but instead Walmart price tags. I asked a sales person about that, and he said that they actually do business with Walmart often for their clearance books. You would think despite the fact that they were going out of business that they would at least change the price tag to their own.


derekhanley profile image

derekhanley 5 years ago from Albuquerque

I think what really hurt them was not having an e-reader division of their business. Amazon and Barnes and Noble have excelled in this department and I believe it is what has kept Barnes and Noble around. If you have been into Barnes and Noble recently, a large portion of their prime real-estate is dedicated to promoting the nook. This store front presence is supporting their e-commerce, which ultimately is adding to their sustainability. Starbucks is also often much more desired and inviting than the Seattle's Best found in Borders. At one of the HUGE San Francisco locations I used to frequent, they didn't even have a lounge vibe to it. It was simply chairs and tables that were not ergonomically designed. I found myself going elsewhere if at all possible. Borders is now behind the times and broke because they didn't evolve with the changing environment.


acampbell72 5 years ago

I think that they could have been saved but this is a result of the way business has moved online and the way we consume books. More and more products are moving online and being used in conjunction with tablets and ereaders. A lot of people do not want or do not have the space to amass large libraries, and our society has slowly changed into a consume it and move on society. Think of music and movies. Streaming movies is becoming more popular as people can pay to watch their movies, and then move on. Also dvd's are still sold, it's becoming increasingly more popular to stream. I do it now, I have gotten rid of just about all of my dvds. So it is the same with books....people like to keep them digitally so they can be quickly and cheaply disposed of when they are done. Borders should have invested more heavily in online content to generate more revenue and create traffic in their stores


Mandy Wittenbrink profile image

Mandy Wittenbrink 5 years ago

My first thought that came to my head is what is Barnes and Noble doing to stay out of bankruptcy when there organization is the same as Borders?

What I'm going to miss about Borders is the chance to go to a bookstore and drink a cup of coffee and relax and read a book. It's not the same to read a book online or off a Kindle at your house or elsewhere.

The newest technology innovations are taking out a lot of print/press making companies and soon will be taking out the employees of all the organizations without the latest technology.

All the new technology is good but sooner then later will all corporations become technology based??


cjurado 5 years ago

Personally I haven't gone to a book store besidesthe reason of purchasing a textbook for a class in ages, or never actually thinking about it. However I do visit the local starbucks and satelite to go buy a coffe or maybe a snack, sit down an do some homework and reading. So to be able to atract me into a book store im going to need some caffeine and a plush area to tackle the class assignments.

I also like the idea in the article about the trad-ins and re-sell. This is wonderfull because now maybe those of us students who are on a budget can afford more books and be inclined to do a little bit more spending there.


derekhanley profile image

derekhanley 5 years ago from Albuquerque

@ Mandy

In response to "My first thought that came to my head is what is Barnes and Noble doing to stay out of bankruptcy when there organization is the same as Borders?"

Barnes and Noble's coffee areas are all much nicer and more appealing. They also have the nook which in itself generates revenue not to mention the many digital books that barnes and nobel can then sell to these nook users. While this is technology based they have dedicated prime real estate within their stores to promote that aspect of their business. In contrast, the online store they have set up is designed to encourage some e-commerce customers into brick and mortar stores.


Kileen 5 years ago

I agree; Borders could have done a lot more. Regardless of e-books and internet, I believe actual bookstores are the preferred purchasing. They are a great place to hang out if they provide and encourage that environment.

From a parent's perspective, there is no better way to encourage children to read than to take them to the book store. They love browsing, opening, touching, all tactile things unavailable on the internet. Libraries can provide some of this stimulation, but no like the bookstores' visual decorating, displays, etc.

It's really too bad they didn't re-invent themselves more to attract the modern market.


Dmccloud 5 years ago

Borders was not keeping up with its competition in many aspects. I personally have not visited a Borders in years however i frequent Barns and Noble and do much internet shopping with Hastings. Borders website is in need of some attention. By comparison, the Barns and Noble site is favorable. Internet is huge today and the convenience of it is what people love. Also, with the booming population of net flicks, red box, etc. Borders should have re-evaluated their marketing and financial plan.


anabellb profile image

anabellb 5 years ago

Borders needed to keep up with modern society, something that was being done by other retail stores such as Wal-Mart and Barnes and Noble as well as Amazon. Wal-Mart had the best sellers at a low price and Barnes and Noble has the contract with Starbucks keeping the customer for a longer time. Amazon also does their part; they do not collect taxes in most states where they operate. The competition was doing more to please the customer, so why didn't Border’s do the same?

For Borders it was a matter of blending in with the place they operated in, place meaning city/state. For example, McDonald's offers green chili double cheese burgers throughout the state of New Mexico. Border's should have found a local popular coffee shop. Satellite coffee (Flying Star) could have made a contract with them. (Note:Satellite coffee has adapted itself, it has the green chili bagel.)

I also think we are in a new era where people want things now without having to go out and search for the best deal. Amazon offers this in the commodity of your own home which is why people are buying more things over the internet. In the near future, Barnes and Noble (as well as other retailers) are going to have to come up with something new in order to keep up with Amazon and other online stores.


Tiffany Rawls profile image

Tiffany Rawls 5 years ago

There are usually many ways in which a company can refrain from going out of business. Borders was not changing with the times to keep customers and to gain new customers. Most of the Borders stores were not organized in an efficient way. Once people walked through the doors they were prompted by high shelving of books. The shelving was too high in some areas that I was not able to see on the top shelf. I also felt overwhelmed with the shelves being so high that those aisles were walked through quickly. Where the shelving was lower I had an easier time going through and looking at all the books. Then the aisles were not wide enough for people to move around one another without disturbing the other people.

The coffee shop was a mix of all the bad things a coffee shop could do. They were tucked away in the store where no one would see them on the other side, the chairs were uncomfortable if customers wanted to sit and enjoy their time, and the “feel” of the area was not something I would be able to relax and read. I understand the signature color was red, but to calm people down, more earth tones would have been nice.

I liked Borders but when a company is in such a competitive market it needs to be able to keep up with the times.


Iris DuFresne 5 years ago

In this day and age it's almost impossible for a company to survive without a strong on-line presence. It is also important for a company to stay up to date with its competitors. If the company does try to compete and accept that changes need to be made...they will not make it.


Devon Beets from MGT300 5 years ago

Aside from pricey books, bad locations, and shoddy coffee shops, I believe the biggest reason Borders failed is because they didn't maintain an adequate online presence. The fastest growing segment of the market is being represented on the internet. If they had tried to be more innovative and user-friendly with their approach to their website, I honestly believe they would've been best off. A well run, intuitive website can increase customer approval of a company and draw in more people possibly. Plus, it can make it easier for customers to contact the company and provide feedback, such as 'your coffee shops suck, make them better.'


Isabela Thomazelli 5 years ago

Borders’ bankruptcy reminds me of that movie where Tom Hanks stars as the owner of a big bookstore and causes Meg Ryan’s small “Shop Around the Corner” close doors. It brings me the same feeling that I had when I saw the little bookstore being so easily defeated by the ruthless Tom Hanks. It is obvious that Borders was having problems for some time due to the new technology related to the e-commerce and more recently, the e-books. I do believe that the company should and could have invested more in its sales strategy, but maybe, their bankruptcy is one of those events that mark the end of an era and the beginning of another. Now, bookstores should take this as an example and adapt to a world that changes very quickly.


BusinessOpsMngmnt profile image

BusinessOpsMngmnt 5 years ago from USA Author

I thought of that too Isabela.


Dominique-Chairez 5 years ago from Burque, NM

Borders kept their minds in the past. They did not keep up with the technology and storm of the the Kindle and other e-reader products. Yes it is nice to have a hardback book, but unfortunately, these will be a thing of the past. Borders should realize the Green Movement and follow in a sustainable path. I believe that if they would have had an internet based business, and intrinsic management, they would have survived a couple of more years. I find it interesting when a big name company goes dry, and wonder how I could have helped. I guess this is why I am studying at the school of Anderson.


Caitlin Donnelly 5 years ago

Personally I love a physical book, but Borders didn't appeal to people unlike me who prefer things more technological. The Borders I went to did have comfortable chairs and a nice coffee shop-so the physical location didn't need much alteration in my opinion. For customer's who require a more online approach, Border's website was horrible. They needed to focus more on the changing market of ebooks for the growing demand away from physical books.

The ironic thing to me is that I preferred going to Borders rather than Barnes and Noble. The Barnes and Noble I'd go to got rid of any sort of comfortable chairs, while Borders always had them. That was the deal breaker for me though. I suppose I'm a small market compared to the large amount of people who don't hang out in a bookstore.


bkhodaie 5 years ago

The reason I think borders went bankrupt is because they failed to keep up the times and the shift in technology. They should have made their website more consumer friendly. They also should have created more ways to draw customers in terms of clubs or group meetings and such things. The coffee shop was poorly designed and thus not very inviting and comfortable. Their atmosphere was not designed to keep customers in the store their was few chairs to sit and browse in and thus people would not buy and just leave. But the worst thing they did at least in Albuquerque was move to expensive real estate locations like ABQ Uptown. There is few parking and so people wont even go to enter. The national problem was definitely that they fell behind as other stores continued advanced technologically and they stood still.


amata01 profile image

amata01 5 years ago from New Mexico

Had Borders succeeded in attracting more customers, yes indeed it could have been saved from bankruptcy. Making their coffee shop more alive and filled it with comfy chairs and tall tables would have attracted more young adults. I have never gone to a bookstore other to buy a textbook for a class and I have never gone to Borders. I heard their books were expensive and you could easily find them somewhere else for cheaper. Yes, they could have definitely been saved from going bankruptcy have they understood how to keep up with society and technology.


Nkeller profile image

Nkeller 5 years ago

I agree with most of the comments on this. I think it was the technology that sunk Borders. I think that all book stores are eventually doomed. Barns and Noble is on top right now because it's pretty much the only major book store open right now. Technology will eventually win. Now you can get ebooks on kindles, iphones, ipads, your computer. Everything electronic. Also now the classics such as Pride and Prejudice are free on amazon for kindle. When you go to a store like boarders you are paying about $10 for a classic. Also ebooks are cheaper. I think that if Borders would have kept up with technology they could have stayed around longer.


asipe02 5 years ago

I think Borders definitely could have avoided bankruptcy if just capitalized on the technological changes that other companies have recognized. I think bookstores will eventually become obsolete and everything will move to electronic means. They should have recognized, adapted,and invested more into the technology of the future while beginning to move away from their current business.


Frank Lucero profile image

Frank Lucero 5 years ago

I wondered what happened to boarders. Very time I past by the store, it seemed as if something was missing or that the store was in the wrong location. The merchandise, from the out side of the store, seemed to expensive for me to even walk into the store. Boarders should have change the marketing strategy to attract new customers.


Jolinger23 5 years ago

Borders needed to get up-to-date with the future. To many companies were evolving with new technology while Borders kept it old school. I never went to a Borders because there were always better places, or places that people actually talked about because of the better technology. I also think they needed more advertising.


Time5 profile image

Time5 5 years ago from New Mexico

I believe Borders went out of Business because of bad Swat Analysis. Their team of Marketing Managers did a bad job of identifying opportunities such as creating a product similar to an e reader. They at one point had a market share of 20 percent which is good considering the amount of competion. Size once being one of there greatest strengths allowed them to offer a larger variety of books. While there competitors were only able to offer a fraction of the books the did. By not matching strengths with opportunities they failed to create a competitive advantage in the time of the strategic window. Also they failed to identify threats and respond to them possibly even making them into opportunities. They instead invested in the wrong markets while their competitors seemed to have gained the edge by investing in other markets to insure future growth.


Cameronlybrook profile image

Cameronlybrook 5 years ago

I think Boarders could have been saved using simple techniques and updating the way that their company was run. Within boarders they beleieved that they were just a "bookstore" this is the wrong way that a company should be run. They should have ran the company on the basis that they were their for entertainment. Because really that is what books are entertainment. Now i am not saying that they should have sold movies but maybe tapes that were featured books that Boarders sold. They should have kept these visible in the front to bring in costumers and keep them there. They also could have had the coffee shop in the back of the store instead of the side. This would have made costumer walk to the back where they would have been introduced to other products or books sold other then the cook books that were offered around the coffee shop. The ambience in Boarders was also wrong they needed to have a more inviting atmosphere not only in the coffee shop were constumers should have been able to sit and read but all over the store. Something as simple as having a comfy chairs all around the store would have made customers stay in the store longer. Most business people know that the longer you keep consumers in your store the more likely they are to buy products.


mgarton 5 years ago

Borders could have been saved by updating their internet site. I tried many times to purchase books off of their website and was either unable to find what I was looking for or was confused by the interface. Also, they should have had better marketing for the things they sold other than books. I never knew they sold anything else other than books until I went into their store.


jlxp15 5 years ago

Up until just recently, I was never a big fan of recreational reading. If I need any information, I'll usually just google it.

I'm tempted to say that bookstores are going the way of Blockbuster and other video stores. Why buy the book when you can buy it in the comfort of your own home? This may not totally be the case as the price of ebooks are rising to the price of hard copy books (I saw a Wall Street Journal article stating the fact.) Personally, I just go with whatever is cheaper. When I need a book, I first try to find it on ebay or amazon.

I really cannot speculate on what they should or shouldn't have done differently as I was not familiar with the store.


pena334 5 years ago

If book stores would just compromise and lower there rates to their competitors they would probably be in good shape. Many stores charge extra fees and have ridiculous prices on books. If bookstores would just lower their prices just a tad they would be in the running's with other companies.


eestes66 5 years ago

These factors definetly contributed to the closing of Borders. Wal-Mart had it right with offering free shipping if the customer picked the item up from the store. Customers may choose, for example, to do their grocery shopping at Wal-Mart instead since they have to go to Wal-Mart any way. Creating a more comfortable cafe area would have contributed their sales also. Comfortable chairs and great tasting coffee would have encouraged customers to stay and read books, books they may decide to purchase. Also they sale of coffee and snacks would have contributed to paying the bills. I think the internet problem Borders was facing was a major contributor. Today internet is very important to a successful business. It allows customer to find the information they need and make purchases without leaving their house. An effective internet customer service program is important in today's technical world.


isathlli profile image

isathlli 5 years ago

Borders’ bankruptcy reminds me of that movie where Tom Hanks stars as the owner of a big bookstore and causes Meg Ryan’s small “Shop Around the Corner” close doors. It brings me the same feeling that I had when I saw the little bookstore being so easily defeated by the ruthless Tom Hanks. It is obvious that Borders was having problems for some time due to the new technology related to the e-commerce and more recently, the e-books. I do believe that the company should and could have invested more in its sales strategy, but maybe, their bankruptcy is one of those events that mark the end of an era and the beginning of another. Now, bookstores should take this as an example and adapt to a world that changes very quickly.


lilyperez 5 years ago

I do think that borders could have saved themselves. Between ereaders and smart phones, Americans have moved to buying books online. I have a NOOK (Barnes & Noble) and it is really easy download books. I also have my textbook for this class on my NOOK (however I don't recommend it). But downloading a book from from the Borders website was quite lengthly. My NOOK saves space and is convienient. The only thing I worry about is that our society is so plugged in, what happens if we lose access to electricity? I worry about this because while I could figure it out, could my 13-year-old child figure it out?


Lesliesara88 5 years ago

I agree with you in that Borders did a lot of things wrong. They really seemed to try to be the high class book store by building in expensive strip malls. I would go to borders and never buy anything because of the prices. The only time I bought from Boarders was at their closing at sale when everything was extremely marked down. I also would always just go to the library since it was free. I especially agree they were slow on technology. If i wanted to buy a book I would just download it to my ibooks app on my iPhone which sync across all my devices. Even the libraries were getting into the technology and making free e books you can rent uses your library account. I think Borders needed to do more research on what their competitors were doing instead of just thinking, "we got this." If they researched they would have for seen what the future was bringing and what their competors were doing.


hahn8 4 years ago

Borders really did two things wrong. They ignored the importance of changing technology, and they failed to appeal to a wider range of consumers. It seems like they fell into the same mind set that Kodak had about its products and services. They thought they could just hang out and ignore technology and just do business as usual. They needed to make a website like barnes & nobles or at least offer eBooks. From what I can tell, eBooks really seem to be the next step in book sales and not just a fad as Borders probably saw them. Borders might have also thought their more expensive consumer base wouldn't be interested in eBooks but they failed to see how extremely convenient and profitable they were. This ties into Borders limiting itself to a small amount of consumers. They had plenty of chances to save themselves simply by making books cheaper but unfortunately that did happen till their going out of business sale. Overall the old Borders has no place in today's world of savvy consumers.


Aaron Major profile image

Aaron Major 4 years ago

I want to say that Borders could have remained from going bankrupt but it just doesn't seem likely. The store would have to undergo all of those changes (and that could easily be done) to remain in business. But I still dont believe that would save them. Internet sales are still far cheaper and newest technology with Kindles and Ipads where you can dowload books right to your hand are taking over the industry. I am not a big book reader so this is just my opionion on the subject but the idea of making an environment that was more customer friendly was an obvious change that needed to be made and so now we can see why they are out of business.


jessica-lucero 4 years ago

So why I think Borders failed, is because they had a poor operation management team. They failed to bridge the gap between traditional and technology.

Now with technology growing and taking over daily activities, reading a book is also changing. And because of Borders lack of great management they failed below the technology curve.


AaronLondon 4 years ago

If i remember correctly, boarders was a large store. This is a lot of overhead for a primary product of only books. most successful book stores are rather small. It also seems like the demand for book is constantly decreasing and more people are using electronic books. Boarders could have defenately expanded the business into carrying a wide variety of products.


lrivas 4 years ago

As from what I can remember from the last time I went into a Borders, I was not comfortable with the scenery. There was hardly any places for customers to sit down thus making consumers sit on the floor. This is displayed in the movie "The Blindside" when they are reading the book from their childhood. Also, they could have located their business into lower cost neighborhoods so their rent would not cost a leg or an arm. Lastly, I hardly ever saw any advertisements only when they were closing down. They did not know how to market their business to customers.


jloco575 4 years ago

Why did Borders fail? In my opinon they had a poor business philosophy. Borders wanted to remain a simple bookstore and neglected their changing customer base. People are becoming more dependant on technology and want things quickly. By not creating a more interactive website and offering ebooks they lost customers fast. Also their customer service was lacking professionalism. I once went in Borders looking for a book for a class. Several different associates saw me looking around and didn't approach me. I had to pursue someone to get some help. Also, after I asked for help the person was rude. From then on I went to Barnes and Noble or Hastings for my books. All in all if Borders updated these two aspects of their business they may still be in business.


Charles Cordova profile image

Charles Cordova 4 years ago

Many of the comments posted on this board have discussed the qualitative reasons Borders went bankrupt. As they have already been covered pretty in-depth, I want to focus on other quantitative factors and specific considerations that should be considered.

First, Borders filed for bankruptcy in early February of 2011. As stated in their annual 10-K report for the fiscal year ending January 31, 2009, "We have a Multicurrency Revolving Credit Agreement, as amended (the “Credit Agreement”), which expires in July 2011. The Credit Agreement provides for borrowings of up to $1,125.0 million limited to and secured by eligible inventory and accounts receivable and related assets." http://www.sec.gov/Archives/edgar/data/940510/0000... Borders filed for bankruptcy roughly five months before their line of credit dried up.

Also of note is that fact that Borders was operating at a loss for 6 years at the time they filed for bankruptcy (3 years before the recession, 3 after, approximately). At the end of 2008 (year of recession) they were already operating at a loss, with a leverage ratio of 6.13 (see previously linked 10-K report). This means that a company that was already taking a loss was going to see an 6.13 times the reduction in revenues as a result of the recession reflected reduced from their net income.

The only thing keeping Borders from bankrupting even earlier than they did was the line of credit they had extended to them from Pershing Square capital management. That line of credit was extended to them by Pershing square, it dried up, and they were too risky to lend any more money to. Even had they returned to pre-recession sales (a huge "if") they still wouldn't have been profitable. Considering that the debt had been secured by their inventory and accounts receivable, it is no wonder Borders had to file for bankruptcy to service it.


Varissa profile image

Varissa 4 years ago from Albuquerque, NM

It makes me sad to see Boarders go out of business. I used to love going into the store and flip through the books. This is something that you obviously can't get online. However, I think they relied on people like me to keep their bookstore going. They over looked the fact that sites like Amazon.com or Ebay.com were becoming major distributors for books. Also the Kindle took off like no other. Recently with items like the Kindle, Nook, and iPad, people are wondering if in the next 10-15 years bookstores will become obsolete. I think this is something Barnes and Noble took into consideration. I think they will be ready for the decline in popularity of bookstores.


jtal6956 4 years ago from Albuquerque

Just like the Kodak incident, borders was not willing to update to new technologies which was one big reason they went under. With the kindle and all the other electronic devices that are taking over the hard copy books. Don't get me wrong there should always be paper books available for everything just in case we lose technology, but a business in this industry needs to stay with technology and know what the consumer wants.


aallbrit 4 years ago

The article mentions five ways Borders went wrong,and as they all hurt the company, their lack of technology seems to be their biggest problem. Ever since e-readers came to the market, that's where people are starting to spend their money. Borders was not a robust company and didn't adapt to the changing market for books. While online books were becoming cheaper and cheaper, Borders maintained high prices in their stores and they could not compete in the end.


Coopis 4 years ago

Jordan Cooper Op.300-001

The technology shift occurring around us is amazing. Businesses like boarders are under threat to innovate and change in the constantly evolving market. Computers and tablets are now available for only few hundred dollars. Devices that were once for only the rich, are now available for almost everyone.

E-books and online sources for literature are becoming so prevalent that people no longer need to purchase paper books, or even drive to the book store. Companies that cant adapt to changes, like Borders, his will fail.

I see a similar trend in television, people are now using their computers and internet connections to stream television and movies through sites like NetFlix and Hulu

Televisions themselves are now coming with built in web browsers and modems to go online. I believe it will get to a point where cable is no longer the dominant form of home entertainment. Companies like NBC and Comcast will need to respond to the markets and innovate their television offerings or fail.

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