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Speaker 1: It's only a man. That's a gouden room bowl a man. Well, Amanda,

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Speaker 1: what is on the cutting room floor today?

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Speaker 2: I've got an interesting story today about a company that

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Speaker 2: was the world leader and greed and lack of insight

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Speaker 2: made it disappear into nothingness.

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Speaker 1: Okay, which company was this?

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Speaker 2: That's that's all I'm going to say. Oh, your more details, Okay,

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Speaker 2: more deeds. This is about the Kodak company. In nineteen

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Speaker 2: seventy five, Kodak was the world's most powerful photo company.

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Speaker 2: Was worth this is in nineteen seventy five, worth thirty

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Speaker 2: one billion dollars. By twenty twelve, bell bankrupt. Wow, twenty

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Speaker 2: years later, less than twenty years later. You want me

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Speaker 2: to tell you what happened.

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Speaker 3: It's apparent that obviously digital technology overtook the film.

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Speaker 2: Yes, of course, but they had the digital technology and

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Speaker 2: buried it. That's what's fascinating about this story.

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Speaker 1: Yep.

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Speaker 2: So they didn't lose, they didn't become bankrupt because of

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Speaker 2: competition or or the technology overtaking them. They made one

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Speaker 2: fatal decision, and it's been called the biggest business mistake

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Speaker 2: in history. So, in nineteen seventy five, Kodak owns photography,

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Speaker 2: ninety percent of film sales worldwide, eighty five percent of

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Speaker 2: camera sales, ten billion in annual revenue, millions of profit

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Speaker 2: every day. One engineer was about to change everything. A

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Speaker 2: young engineer, his name was Steve Sassin. He walks into

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Speaker 2: the Kodak lab and he says, I've invented a camera

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Speaker 2: that doesn't need film. The room goes silent. He shows

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Speaker 2: them the prototype. It works perfectly. Their response, bury it.

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Speaker 2: The executive said, by the patent. We'll own the patent

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Speaker 2: and we will bury it. We will tell no one

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Speaker 2: because film was making them so much money. Dollar per

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Speaker 2: role is what they got from film sales. Why kill

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Speaker 2: the cash con That's what they thought. Well, then they

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Speaker 2: go along with that. Nineteen ninety five, digital cameras flood

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Speaker 2: the market. Other people they didn't need their patent. Other

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Speaker 2: people are working out how to do the same game invented.

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Speaker 2: Their competitors raced to adapt Kodeak's response. They still had

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Speaker 2: this information, still had this patent's They doubled down on

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Speaker 2: film and disposable cameras.

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Speaker 1: Ah yeah, So by two.

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Speaker 2: Thousand and five, the numbers were brutal, digital camera sales

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Speaker 2: exploding film sales plummeting. Kodaks stock was down seventy five percent,

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Speaker 2: and yet they still held on. They didn't see the

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Speaker 2: writing on the wall and think, you know what, why

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Speaker 2: don't we make our own digital camera. We've got the information.

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Speaker 2: They do it too late January twenty twelve. Well it

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Speaker 2: wasn't too late. In two thousand and five. January twenty twelve,

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Speaker 2: they went bankrupt twenty eight thousand employees.

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Speaker 1: Will it go?

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Speaker 2: One hundred and forty two years of history ended because

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Speaker 2: as they say here, greed made them bury tomorrow.

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Speaker 3: And Kodek there is a market these days for film,

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Speaker 3: you know, from hipsters.

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Speaker 1: It's novelty.

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Speaker 3: Yeah, Like they're not going to make billions of dollars

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Speaker 3: from hipsters.

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Speaker 2: This moment's gone coming in for the odd role of film. No,

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Speaker 2: it's like people who still buy records. That's never going

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Speaker 2: to be the main start of the industry.

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Speaker 3: But this happened with Netflix and a Blockbuster video. The

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Speaker 3: Netflix guy went to Blockbuster and said, I've got this idea,

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Speaker 3: I've got this streaming service.

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Speaker 1: They went on a bike pal.

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Speaker 2: Well, did you see that documentary about the BlackBerry? So interesting?

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Speaker 2: That was a great doco At the BlackBerry was the world,

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Speaker 2: was the market leader. It had the phone and a

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Speaker 2: little computer with an out with a little keypad. And

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Speaker 2: what they just not did not see it coming. Steve Jobs,

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Speaker 2: did this apple comes in? They put the keyboard onto

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Speaker 2: the screen of the computer. They put it onto the

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Speaker 2: screen of the phone. And we were saying, no, people

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Speaker 2: will still want to type. They'll still want to blah

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Speaker 2: blah blah.

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Speaker 1: They stick to it, sticking to your old guns.

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Speaker 2: Yeah, and they went bankrupt too.

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Speaker 3: I remember years ago I was going to make happy day.

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Speaker 3: This is probably in the nineties in Brisbane and I

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Speaker 3: was just taking to the manager of the McDonald's there.

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Speaker 1: I said, what about this subway mob?

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Speaker 3: Because up in Brisbane in the nineties you couldn't get

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Speaker 3: subway anywhere else in Australia.

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Speaker 1: It was only in Brisbane. I said, what about this

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Speaker 1: subway mob? Are you worried about them?

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Speaker 3: He? I said, who's going to eat salad sandwiches? Subway

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Speaker 3: took over McDonald's curiously now.

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Speaker 2: Took over in sales.

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Speaker 1: In sales are they ahead of McDonald's.

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Speaker 3: But Subway have fallen off the radar now because they

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Speaker 3: got too big.

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Speaker 2: Didn't you weren't you asked to invest in booth juice.

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Speaker 2: You said, who's going to drink juice?

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Speaker 3: Years ago, a boss of mine came up to her,

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Speaker 3: and you know this guy, He said, if you got

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Speaker 3: to spare thirty grand?

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Speaker 1: And I said why?

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Speaker 3: And he said, old mate, he is starting a business

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Speaker 3: and they just need some ground floor investors.

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Speaker 1: If you've got to spare thirty grand.

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Speaker 3: And I said, well, curiously I do, but I'm buying

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Speaker 3: a Harley Davidson motorcycle.

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Speaker 1: Wow.

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Speaker 3: And he said, well, maybe you might want to rethink that.

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Speaker 3: I said, no, I'm going to stick.

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Speaker 1: With my Harley because no, because who drinks juice?

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Speaker 2: What would thirty thousand be worth? Now? Ink?

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Speaker 1: Someone did say? And I don't have this true? What

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Speaker 1: I say? Someone said it'd be worth about seventy or

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Speaker 1: eighty billion bucks? Now you if you.

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Speaker 3: Kept they give you, if you kept rolling over, if

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Speaker 3: you kept saying, right, here's my thirty and then you investing.

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Speaker 1: But I'm not a businessman. I'm not a business Look,

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Speaker 1: I got you to work with me. What's not a businessman?

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Speaker 1: Am I? Although? What's a businesswoman of you? Because I

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Speaker 1: just have his some magic beads.

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Speaker 2: I still haven't seen them