Netflix was created because of a late fee - thanks, Blockbuster!

[00:00] Netflix was created because of a late [00:02] fee. Netflix completely changed the way [00:04] you watch movies, but it didn't start [00:05] off as a streaming app. It started with [00:07] a fine. Back in the late '90s, Reed [00:09] Hastings rented a VHS from Blockbuster. [00:12] He returned it late and got hit with a [00:14] $40 fine for one movie. And that was the [00:17] moment. Because the problem wasn't the [00:19] movie, it was the friction. So, he asked [00:21] himself a simple question. What if [00:23] rental movies didn't punish you? No late [00:25] fees, no deadlines, no stress. And that [00:28] idea became Netflix. At first it was [00:30] DVDs in the mail, as in the post, and [00:33] then it became streaming. And eventually [00:35] they put Blockbusters out of business [00:38] essentially because of a late fee. How [00:40] crazy is that? Because sometimes the [00:42] best startups don't come from amazingly [00:44] big ideas, they come from small [00:46] frictions and frustrations that need to [00:49] be fixed.