Blockbuster Had Netflix on the Ropes in 2007

Blockbuster passing on Netflix for $50 million is the most famous mistake in business history. It wasn't the real one. In 2007, Blockbuster had Netflix losing subscribers for the first time. Then it walked away from its own winning idea. The 2000 Dallas meeting, judged with both companies' real numbers, then the second chance almost nobody talks about: Total Access, the late-fee gamble, Carl Icahn's proxy fight, and the quarter Blockbuster stepped back. ⏱️ Chapters 00:00 Fifty Million Dollars 02:54 The Meeting in Dallas 06:45 The Second Chance 10:13 Who Blinked First 15:19 What Saving Money Cost 📚 Sources Marc Randolph, That Will Never Work (2019) John Antioco, "How I Did It," Harvard Business Review, April 2011 Blockbuster 10-K, 10-Q and 8-K filings, 2001–2010, SEC EDGAR: https://www.sec.gov/cgi-bin/browse-ed... Netflix S-1 (2002), 10-K (2007) and 2007 quarterly results, SEC EDGAR: https://www.sec.gov/cgi-bin/browse-ed... California Attorney General, "No Late Fees" settlement, 2005: https://oag.ca.gov/node/29594 CNN/IDG, Blockbuster–Enron deal, July 2000: https://us.cnn.com/2000/TECH/computin... Motley Fool, "Blockbuster CEO Has Answers," Dec 2008: https://www.fool.com/investing/genera... Fortune, Apr 14, 2023: https://fortune.com/2023/04/14/netfli... ▶️ Watch next: Kodak invented the digital camera, then protected film. This video is for educational purposes only and is not financial advice.    • Kodak Invented the Digital Camera. Then It...   🎵 Music: Prelude in E minor, Op. 28 No. 4 (Chopin), performed by Jeannette Fang, via Musopen. Public Domain Mark 1.0. 🖼️ Image credits (Wikimedia Commons or Flickr): Joe+Jeanette Archie: Blockbuster Video, Addison, Illinois (CC BY 2.0). Jon Konrath: Anchorage Blockbuster video store, five photos (CC BY 2.0). Glen E. Ellman: John F Antioco, February 2022 (CC BY-SA 4.0). Chris Light: Blockbuster 6178 (CC BY-SA 4.0). Coasterlover1994: Exterior and Interior of last Blockbuster Video (CC BY-SA 4.0). Ed!: Blockbuster Blue Ash OH (CC BY-SA 3.0). Matthew T Rader: Dallas Skyline at Dusk; Dallas Skyline in the evening (CC BY-SA 4.0). Hannes Grobe: Panasonic optical disc player (CC BY 3.0). Alex: Enron Complex (CC BY 2.0). Chanilim714: Enron Downtown Houston (CC BY-SA 3.0). Will Buckner: Open Blockbuster in Fairbanks, Alaska, 2018 (CC BY 2.0). JD Lasica: Reed Hastings, three photos (CC BY 2.0). Jonathan Rolande: Blockbuster Video Membership Card (CC BY 2.0). Phillip Pessar: Blockbuster closing, Miami Beach, 2013 (CC BY 2.0). Tony Webster: Blockbuster Video Rental Store Minneapolis (CC BY 2.0). Marit & Toomas Hinnosaar: Netflix envelope; Netflix envelope and DVD (CC BY 2.0). Ron Cogswell: Netflix DVD Envelope (CC BY 2.0). Coolcaesar: Netflix headquarters (CC BY-SA 3.0); 100 Winchester Circle (CC BY-SA 4.0). Gage Skidmore: Marc Randolph, two photos (CC BY-SA 2.0). Nate: Redbox Kiosk (CC BY-SA 3.0). Johnny plane 1: Dallas Renaissance Tower, 2025 (CC BY-SA 4.0). Andreas Praefcke: Dallas Elm Place Renaissance Tower (CC BY 3.0). Justin Cozart: Dallas West End Station Renaissance Tower (CC BY 2.0). Dave Bezaire: Rural Mailbox (CC BY-SA 2.0). Public-domain images: SEC EDGAR filings, USPTO, NASA, FBI, US Air Force and other PD/CC0 works on Wikimedia Commons. Shown for commentary: Blockbuster.com and CNN pages (via the Wayback Machine), the California Attorney General's office, and The Motley Fool. Narration created with AI tools.