The rivalry between Netflix and Blockbuster became apparent the moment the CEO of Netflix, Reed Hastings, tried to sell his small business to Blockbuster. Blockbuster laughed in his face and told him that his home delivery DVD service isn't worth anything to them. Flash forward ten years later, Netflix is worth billions of dollars and Blockbuster has filed for bankruptcy.
Obviously, there's a middle part of this story that most people don't know. When Blockbuster was still valued at more than Netflix, the CEO of Netflix tried to combine his services with some of Blockbuster's already existing ones—but because of trust issues, a deal was never made.
Eventually, Blockbuster began to make desperate attempts to fix their mistake of not purchasing Netflix. According to Reed Hastings, Blockbuster was "throwing everything at them except the kitchen sink".
The following day, Reed Hastings received a kitchen sink from the CEO of Blockbuster, John Antioco.