Blockbuster

At its peak, Blockbuster had 9,094 stores worldwide and was the undisputed king of home entertainment. Friday night meant walking the aisles, checking the new releases wall, and inevitably settling for your third choice because the first two were already rented.

In 2000, Netflix founders Reed Hastings and Marc Randolph flew to Dallas to propose that Blockbuster buy Netflix for $50 million. Blockbuster CEO John Antioco reportedly struggled not to laugh. At the time, Netflix was a money-losing DVD-by-mail startup. Blockbuster was making $800 million a year in late fees alone.

The late fees were the tell. Blockbuster's business model depended on punishing its customers. Netflix eliminated late fees, then eliminated the store, then eliminated the disc. By 2010, Blockbuster filed for bankruptcy. One franchise store remains in Bend, Oregon, operating as a combination video rental shop and tourist attraction. It has its own beer.