The Real Reason Blockbuster Died

Blockbuster did not die because of Netflix. That is the story everyone tells.

But here is what actually killed them. In 2000, they could have

bought Netflix for fifty million dollars. Instead, they laughed them out of the

room. The real mistake happened earlier. Late fees made six hundred million

annually. Data showed customers hated fees, but leadership had a choice.

Wall Street demanded growth, so they chose short term stock prices.

Netflix built the future while Blockbuster defended the past. Market pressure forced them to choose

their own extinction.