TL;DR: History remembers Jim Keyes as the "fool" who bankrupted Blockbuster by refusing to buy Netflix. The truth is far more complex: He had a winning strategy (streaming + Google partnership) that was killed by the 2008 financial crisis. But his life philosophy—rising from dirt poor to leading two Fortune 500 companies—teaches us a critical lesson for the AI era: Fear is a product of Ignorance. To survive change, you must switch from "Caveman Brain" to "Aviator Brain."
James here, CEO of Mercury Technology Solutions. Hong Kong - February 13, 2026
You probably know the story: The arrogant Blockbuster CEO laughs at Netflix, refuses to buy them for pennies, and then goes bankrupt. It is the favorite cautionary tale of every tech bro on LinkedIn. It is also wrong.
The CEO, Jim Keyes, wasn't an idiot. Before Blockbuster, he saved 7-Eleven from bankruptcy and grew it into a $60 billion empire. At Blockbuster, he had already acquired streaming tech and had a partnership agreement with Google/YouTube on his desk, ready to sign. He had checkmated Netflix. Then the 2008 crash happened. The banks pulled his credit line. Game over.
Jim Keyes didn't lose because he was stupid; he lost because of a "Black Swan." But his reaction to failure—and his philosophy on navigating chaos—is the best advice I have heard for anyone anxious about AI and the future.
Here are the 3 lessons on how to be Fearless in the Face of Change.
1. Knowledge is the Antidote to Fear (Caveman vs. Aviator)
We all feel anxiety right now. Will AI replace me? Is the economy collapsing? Jim Keyes identifies two operating modes of the brain:
- The Caveman Brain: When the Amygdala senses a threat, it triggers "Fight or Flight." In the office, this looks like the angry manager yelling (Fight) or the passive-aggressive employee hiding (Flight).
- The Aviator Brain: When a pilot hits turbulence, they don't scream. They look at the instruments. They rely on data and training.
The Insight: Fear comes from Ignorance.
- You fear AI because you don't understand how LLMs work.
- You fear financial ruin because you don't understand money.
How to be Fearless: Stop trying to stabilize the external environment (you can't). Stabilize your internal environment by destroying ignorance. Every time you feel anxiety, treat it as a signal: "I am missing data here." Go learn. When you understand the mechanics of the threat, the fear evaporates, replaced by agency.
2. Education is Leverage (Don't Listen to Billionaires)
It is fashionable in Silicon Valley to say "College is a scam." Peter Thiel and Elon Musk say, "Drop out and build." Jim Keyes, who grew up "dirt poor," says this is Survivor Bias.
For the 99% of us who aren't geniuses with a safety net, Education is the strongest leverage for class mobility.
- Differentiation: In a global market where millions of smart graduates from India and China are competing for jobs, a degree is the minimum viable ticket to enter the arena.
- Liberal Arts in the AI Era: Ironically, as AI automates coding and hard skills, "General Education" (Critical Thinking, Systems Thinking, Communication) becomes more valuable.
How to be Fearless: Don't drop out of learning. A degree (or continuous deep learning) gives you Optionality. If your specific job (e.g., Truck Driver) disappears, your "General Operating System" (Education) allows you to pivot. Education is your insurance policy against obsolescence.
3. True Freedom is the Absence of Fear
Jim Keyes has flown private jets and run global empires. But he defines success not by money, but by Freedom from Fear.
He redefines "Humility." Humility isn't thinking less of yourself. Humility is being smart enough to know what you don't know. It means being willing to learn from the janitor because you know your own blind spots.
The Formula for Fearlessness: Knowledge + Faith = Fearless.
- For the Known Variables: Use Knowledge to solve them.
- For the Unknown Variables: Use Faith (or "The Force") to endure them.
If you let fear dictate your decisions, you are in a prison, no matter how much money you have. But if you use knowledge to clear the fog, you are free.
Conclusion: Be the Pilot
Jim Keyes lost the battle for Blockbuster, but he won the war of life. He wasn't defined by the failure because he understood that the failure was an event, not an identity.
How to be Fearless on Changes: When the next disruption hits (and it will hit soon), observe yourself. Are you retreating into the cave, angry and scared? Or are you checking your instruments, learning the new variables, and flying the plane?
The turbulence isn't your fault. Flying the plane is your responsibility.
Mercury Technology Solutions: Accelerate Digitality.
