In 1998 Reed Hastings grew tired of having to pay the absurdly high late fees bestowed upon him by Blockbuster.
He didn't just complain, he thought of an alternative system to renting movies. Hastings dreamed big, worked hard, and Netflix was born.
In 2000, Reed Hastings approached Blockbuster to try and sell his company to them, however Blockbuster denied the offer saying there was no future in that business. Oops.
For four long years, Blockbuster ignored the fact that Netflix was on the up swing and rapidly growing in popularity. Finally, in 2004, Blockbuster tried getting in the market of home delivery. It was much too late, Netflix and Redbox were already dominating the market.
Today, blockbuster had to file for bankruptcy. Even during Blockbuster's dying days, the CEO arrogantly said ”I’ve been frankly confused by this fascination that everybody has with Netflix …
Netflix doesn’t really have or do anything that we can’t or don’t already do ourselves.” Essentially, he said that Netflix is worth no real threat.
In 2012, Netflix earned over $3,000,000,000 in revenue. Blockbuster could have made the best business move of all time - instead of the worst.