The Fall of Blockbuster

Blockbuster had a chance to buy Netflix for fifty million dollars in 2000...

...and laughed them out of the room. This wasn't just arrogance.

Blockbuster was making eight hundred million annually from late fees alone. They built their

entire business model around punishing customers. When Netflix offered a subscription with no penalties,

Blockbuster saw it as leaving money on the table. By the time they launched their

own streaming service in 2004, they were already too late. They failed because

their most profitable revenue stream was the exact thing customers hated most.