The Fall of Blockbuster

Blockbuster didn't die because of Netflix. They actually had the chance to buy Netflix for

fifty million dollars and said no. But here is the twist nobody talks about.

Blockbuster was making eight hundred million a year just from late fees. Their entire business

model was built on punishing customers. When Netflix offered no late fees, Blockbuster could not

compete. Removing late fees meant killing their main profit source. They chose bankruptcy

over change. Your biggest revenue stream might be killing your future. Blockbuster could have

survived, but they loved those late fees more than they loved staying alive.