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Blockbuster's Self-Inflicted Wound

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Created December 12, 2025

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Video Transcript

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Netflix didn't kill Blockbuster. Blockbuster killed itself. In 2000, Blockbuster had the

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chance to buy Netflix for 50 million dollars. They laughed them out of the

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room. But here's what most people miss. The real mistake wasn't rejecting Netflix.

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It was what happened next. Blockbuster actually launched their own streaming service in 2004.

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Three years before Netflix did. They had the stores, the brand recognition,

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the customer base. Everything Netflix didn't have. So why did they fail?

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Their CEO was terrified of cannibalizing their late fee revenue. Those fees made

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up 16 percent of their total income. So they sabotaged their own innovation.

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