Netflix didnโt just beat Blockbusterโthey exploited its biggest weakness. In 2000, Blockbuster made $800M from late fees. Customers hated them. Netflix saw an opportunity. Instead of charging per rental, they launched a $19.99/month unlimited plan. No late fees. No return deadlines. No stress. They werenโt just selling moviesโthey were selling freedom. By 2010, Blockbuster was bankrupt, drowning in nearly $1B of debt. The lesson? The best business opportunities arenโt always about creating something newโbut eliminating a pain point. Netflix didnโt disrupt just rentals. They disrupted stress.
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