In 2004, Blockbuster made the most costly mistake in the history of the entertainment industry. Two people had pleaded with Blockbuster to acquire their DVD rental service. But the Blockbuster staff laughed at them and kicked them out of the meeting room. Fifteen years later, these two individuals completely crushed Blockbuster. The astonishing story of Blockbuster's decline: 🧵

In the early 2000s, Blockbuster was like an invincible giant. It had over 9,000 stores worldwide. Every Friday night, almost every household would drive to Blockbuster to rent movies. It was not just an activity, but a sense of ritual. At that time, Blockbuster seemed unbreakable, as if no one could shake its position. Ironically, the most powerful companies are often the easiest to be blinded by their own arrogance.

At the same time, a small company called Netflix was struggling to survive. Two entrepreneurs, Reed Hastings and Marc Randolph, had a bold idea: to rent DVDs by mail. But Netflix was facing difficulties and on the brink of collapse, and they urgently needed help. So, they turned to Blockbuster.

In 2004, Reed and Marc presented their proposal to the executives at Blockbuster. Their proposal was: "Acquire Netflix for $50 million and combine our online rental model with your physical stores. Together, we can dominate the entire market." What was Blockbuster's reaction? Laughter. At that time, CEO John Antioco did not believe in the future of the internet.

Blockbuster directly views Netflix as a joke. But they are completely unaware that technology is quietly changing the entire industry. The streaming era is already brewing, and consumers are starting to value convenience more. And Netflix has long been ahead of the curve.

However, Blockbuster chose to double down on its offline strategy. They continue to charge late fees, which is one of the policies consumers hate the most. They choose to ignore the rise of streaming. They believe that their strong brand influence is enough to withstand any threat. They are completely wrong.

Netflix made a decisive transformation. They shifted from mailing DVDs to a disruptive model: online video streaming. By the time Blockbuster realized what was happening, Netflix was already on a roll. Moreover, Netflix didn't just innovate; they took the initiative to directly challenge Blockbuster.

Netflix's promotion of no late fees is like a fatal blow to Blockbuster. Customers quickly flocked to Netflix, enjoying its simplicity, flexibility, and lack of burden. Blockbuster was then flustered, trying to launch its own streaming service, but it was all too late.

By 2010, Blockbuster declared bankruptcy. This once entertainment giant was ultimately crushed by its own arrogance and sluggishness. Meanwhile, Netflix grew into a super company with a market value of $524.8 billion. That small company that was ridiculed back then became the final winner.

The story of Blockbuster is not just a tale of business failure. It serves as a warning: If you ignore technological innovation and underestimate emerging competitors, the outcome can be dire. In today's rapidly changing world, the cost of being out of touch is higher than ever before.

What lesson does this matter teach us? Never underestimate those opponents who seem small. Never ignore the changes that are reshaping industry trends. Most importantly, learn to adjust in a timely manner, or you will be eliminated. The fall of Blockbuster is a real case about how to survive in times of change.

Thanks for reading! 👍 Chinese translation from: Follow me @0xCheshire for more content. If you liked this article, please help retweet 🔄 the first tweet so that more people can see it: 👇