Marc: And worse, it wasn't just getting a foothold against a bigger company. It was basically saying, We're proposing a model where you come to the Internet and you order a movie and we mail it to you. And that's gonna take anywhere from 1 to 4 days for that movie to arrive.
And people could not get their hands around how that could possibly work when you could pretty much throw a stone from any place in the United States and hit a Blockbuster. Why would anybody do it through you when they could just drive five minutes and rent from Blockbuster and they had a point?
We did have some things up our sleeve, basically, the fact that everyone hated Blockbuster. You always want to compete against someone that everyone else hates. But we also
Tim: Why did they hate Blockbuster?
Marc: Blockbuster? That part of it was blockbusters attitude. Blockbuster did not believe that they were in the customer service business on DSO. People were frustrated with the experience. They also relied in their business model on late fees. Uh, late fees.
Tim: Oh, I remember that.
Marc: In fact, they actually had an internal term for it, and they called it managed dissatisfaction and
Tim: Oh my God, that's great.
Marc: And you always want to compete with someone whose core tenant is managed dissatisfaction.
— Your Host:
Tim Ferriss
with:
Marc Randolph
—
Tim Ferriss