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Blockbuster's Fatal Mistake

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Created December 13, 2025

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Video Transcript

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Blockbuster had every advantage, but made one fatal mistake. In 2000,

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Netflix offered to sell for fifty million. Blockbuster laughed them out.

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They believed stores were fortresses, Netflix bled money. But they missed something big.

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Their late fees, 16% revenue, meant customers hated driving in rain for a DVD.

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Netflix understood: we crave convenience more than we hate waiting. They invested in

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streaming. By 2010, Blockbuster was bankrupt. Netflix became a verb.

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The lesson? Your biggest profit center today can sink you tomorrow.

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