Yes, except that before DVD's, tapes were routinely $20+ and DVD's dropped below $15 surprisingly fast and when you figure for inflation, that they are still ar

Yes, except that before DVD's, tapes were routinely $20+ and DVD's dropped below $15 surprisingly fast and when you figure for inflation, that they are still around $15 means they are selling the same product for considerably cheaper than VHS did (and for a while in higher volumes). I totally agree that digital hurt Blockbuster, but Blockbuster was in a terrible place before the world went digital streaming. Netflix DVD mailers basically stole millions of customers on the promise of "no late fees", which was clearly a huge customer complaint with Blockbuster. Blockbuster's decline started before streaming was big and Blockbuster did a reasonable job to try and keep up with Netflix in terms of building up their own mailing business, digital rental business, kiosk business, etc. but the fundamental problem with Blockbuster's business is they needed to rent things for $5 a pop to pay for the revenue sharing and rent. Redbox and Netflix built their business without paying as much or anything in revenue sharing and a completely different operational cost structure. The only way Blockbuster could have stayed afloat is to keep happy customers, but they pissed too many people off too many times by being too expensive and ripping people off with late fees. Happy repeat customers who are willing to pay a premium for awesome service will keep many businesses alive, but Blockbuster lost happy customers and didn't have awesome service. Internet played a part, but let's not throw away the business fundamentals with the bathwater.