Did Blockbuster pass on buying Netflix?
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What Happened: What did Blockbuster famously decline around 2000?
Buying Netflix, reportedly for about $50 million. Co-founder Marc Randolph has described offering Netflix to Blockbuster for $50 million in 2000; Blockbuster passed. Source: Fortune – Netflix cofounder recalls Blockbuster rejecting $50M deal (2023)
Why: Why did Blockbuster pass?
Its model profited from stores and late fees. Incumbents protect existing profits, including late fees customers hated. Source: Wikipedia – Blockbuster (retailer)
The Lesson: The lesson?
Disruption often starts as a small threat that looks like a niche. The innovator's dilemma in action. Source: Wikipedia – The Innovator's Dilemma