The Fall of Blockbuster

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

But they laughed them out of the room. Here is what actually killed them

though. It wasn't just arrogance. Blockbuster's CEO had run convenience stores

before. He treated movie rentals like selling milk and believed physical locations were

everything. Their data showed customers hated late fees, which made up

sixteen percent of revenue. The board saw eliminating late fees as financial suicide.

But here is the twist. Their own innovation team had designed a streaming platform

in 1999, before Netflix pivoted. Management shelved it, calling internet video a fad.