Netflix didn’t just beat Blockbuster—they 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 weren’t just selling movies—they were selling freedom. By 2010, Blockbuster was bankrupt, drowning in nearly $1B of debt. The lesson? The best business opportunities aren’t always about creating something new—but eliminating a pain point. Netflix didn’t disrupt just rentals. They disrupted stress.
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