Blockbuster was caught off guard when competitors started sending videos through the mail, cable and phone companies started offering video on demand, and started renting videos through vending machines. And when videos began to be streamed through computers and phones, Blockbuster's traditional outlets became hopelessly obsolete. Competitors proved to be a truly disruptive innovation, because Blockbuster would have to alter its business model – and damage its profitability – in order to compete. Blockbuster eliminated late fees, which marked the beginning of its decline, as the company's profits were heavily dependent on penalizing its customers. Blockbuster should have incorporated some new services for customers and delved deeper into the problem