Just don't fault these companies for being "stupid" as is so often the case. The CEO's were not reckless as you mentioned. Take Kodak, a company I've read a lot on the failure of, given that I lived in Rochester. Kodak didn't "miss out" on digital photography. They actually invented a lot of the firsts in the industry. The company's board made the very clear decision that they had a massive cash cow in the film production/developing business. To chase digital would be to cannibalize their own cash cow chasing a risky new technology in a race to the bottom. They made the best decision for shareholders within the decade time horizon. Also realize that had Blockbuster bought Netflix in ~2004/5, we'd not have great online streaming services today. As Tim Wu expounds in The Master Switch, it is always in the interest of the incumbent to subvert new technologies that threaten the stability of the industry.